Green finance: surge of climate-transition emerges from Asia’s governments to promote decarbonisation projects
- Such guidance will make it ‘a lot easier for banks to figure out what to do and what not to do’, expert says at Climate Business Forum
- Transition finance presents tremendous opportunities in Asia, which will complement and diversify exposures in Europe and the US, asset manager says
Governments in Asia are preparing to unleash a flood of transition-finance guidance this year in an effort to provide clarity for investors and help accelerate corporate efforts to cut carbon emissions, according to bankers and asset managers.
Such guidance is necessary to promote lending for climate-transition plans. But the profusion of guidance from multiple governments is also a possible source of conflicting information.
“As a banker, I can tell you that you cannot develop the market if there is no guidance about what is green,” said Tanguy Claquin, global head of sustainability at Crédit Agricole CIB. “In Asia, we see a flurry of taxonomies being developed there. There is a need for those taxonomies, but there is [also] a need for convergence.”