• New Book Explores Innovative Sustainable Financing Approaches in Asia

New Book Explores Innovative Sustainable Financing Approaches in Asia

ADBI News Release | 16 August 2023

Tokyo, Japan – A new ADBI Press book overviews sustainable financing trends and practices for boosting investment crucial for addressing climate risks in Asia and the Pacific. It explores corporate management reforms for promoting sustainable business models in line with environmental, social, and governance imperatives and the banking sector’s critical role in encouraging these practices among small and medium-sized enterprises.

Global Climate Challenges, Innovative Finance, and Green Central Banking by ADBI’s Sayuri Shirai assesses climate finance drivers for developing countries. These include blended finance schemes to attract private capital for climate and environmental projects and debt-for-nature conservation swaps as a policy solution for the debt challenges faced by low-income countries, which are often also climate-vulnerable.

The discussions detail the climate-related practices, mandates, and potential actions of central banks and financial regulators, such as the disclosure of climate risks on banks’ balance sheets and operations and climate-focused monetary policy.

The book concludes by highlighting the increasing number of financial authorities adopting prudential policies that integrate climate risks as well as ongoing efforts to incorporate climate factors into the regulation of capital adequacy requirements.