Between 2019 and 2030, Southeast Asia needs an estimated $210 billion annually for investments in climate-resilient infrastructure. Public finance alone cannot bridge that gap, and the Sustainable Development Goals (SDG) bonds can play a crucial role in raising private funding.

The ASEAN Catalytic Green Finance Facility (ACGF) was launched in 2019 as an ASEAN Infrastructure Fund initiative to accelerate private financing of green infrastructure. The ACGF recommends a completely new type of bond, the SDG Accelerator Bond, to help mobilize funding for SDG projects.

Transcript

Meeting the United Nations’ Sustainable Development Goals – or SDGs – by 2030 requires global commitment.

But the COVID-19 pandemic has had a devastating effect on people, businesses, and economies all over the world, making it even more difficult for the world to meet the SDGs.

Financing is a major challenge. The governments of the world cannot fulfil their SDG commitments without help from the private sector.

In Southeast Asia, private SDG funding is on the rise, but more is needed.

One way of leveraging private financing for SDG projects is bonds with socioeconomic targets. These bonds have been gaining momentum around the world, momentum that is further accelerated by the debilitating impacts of the global pandemic.

There are already many kinds of bonds that are marketed as sustainable.

SDG Bonds, however, are characterized by specifically addressing one or more of the SDGs.

The ADB-managed ASEAN Catalytic Green Finance Facility, or the ACGF, was set up in 2019 to accelerate green infrastructure investments in Southeast Asia.

The facility has helped develop several SDG-related bonds in 2020 as part of a green recovery after COVID-10.

To raise public interest in SDG Bonds, the ACGF suggests a new concept: The SDG Accelerator Bond.

SDG Accelerator Bonds offer a different payment structure and a guarantee mechanism to make them more attractive.

Learn more about the ACGF, and read the ACGF’s publication on the role of SDG Bonds in a sustainable post-COVID-19 recovery, at adb.org/acgf

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