ACGF and GCF support Cambodia’s Energy Transition Program
ADB has approved a $50 million policy-based loan package and $23 million in project investments to support the Cambodian Energy Transition Sector Development Program including a $10 million loan from the ACGF. For the $23 million in infrastructure investments, the Climate Investment Funds will provide a $6 million loan and $5 million grant in concessional climate finance, while the Green Climate Fund will extend a $12 million loan through the ACGF Green Recovery Program.
Government Housing Bank of Thailand issues first sustainability bond under ACGF bonds initiative
The Government Housing Bank of Thailand, with support from ADB, has issued its first sustainability bonds to refinance and finance the bank’s environmental and social projects, including homeownership programs for low- to middle-income households and to promote ownership of energy-efficient housing units. ADB provided technical assistance under ACGF's GSS+ Bonds Initiative for Southeast Asia.
ACGF highlighted at ASEAN Global Dialogue
In his speech at the second Association of Southeast Asian Nations (ASEAN) Global Dialogue on 13 November 2022 in Cambodia, ADB Vice President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa mentioned the ACGF as one of two examples of several new climate change mitigation initiatives that ADB has launched. The other example was the innovative Energy Transition Mechanism which was launched last year at COP26. Besides climate change, VP Lavasa’s speech pointed out health and education as two important areas for ASEAN which ADB is already focusing on.
$15 million technical assistance program presented at COP27
At COP27, ADB announced a $15 million technical assistance program to build a pipeline of climate projects in Southeast Asia. The TA program Accelerating Climate Transitions through Green Finance was presented by ADB Southeast Asia Director General Ramesh Subramaniam on 9 November 2022 at a side event in the Japan Pavilion. Projects identified by the program could benefit from further funding by the ACGF and its partners. Read the news release.
ACGF featured at the 29th APEC Finance Ministers’ Meeting
At the 29th APEC Finance Ministers’ Meeting in Bangkok, Anouj Mehta, Country Director for Thailand and Unit Head of the ACGF, presented ADB’s views on policy development, knowledge and thematic initiatives for scaling up sustainable finance, including the achievements of the ACGF. The ACGF was later highlighted by the APEC Chair, Thailand Minister of Finance and ADB Governor Arkhom Termpittayapaisith, as one of the “mechanisms that can help APEC economies to access sustainable finance”. Furthermore, Mr. Arkhom said the meeting discussed accessing sustainable finance through capital markets, which the ACGF is championing through its recently launched GSS+ Bonds Initiative for Southeast Asia.
ADB and ACGF launches ASEAN GSS+ Bonds Initiative
On 29 September, ADB launched the ASEAN GSS+ Bonds Initiative which will be anchored and hosted in ADB’s Thailand Resident Mission and supported by the ACGF, aiming to strengthen thematic bonds issuance by governments, cities, and SOEs. ADB Vice President for East Asia, Southeast Asia, and the Pacific Ahmed Saeed delivered the keynote address and emphasized the importance of scaling up green and thematic bonds for Southeast Asia. In her opening remarks, Thailand’s Public Debt Management Office Director General Patricia Mongkhonvanit highlighted the opportunities and challenges in scaling up thematic bonds in Thailand. Other attendees included government agencies, bankers, investment funds, and ADB staff.
ACGF work on labelled bonds commended by VP Roberta at ADB Annual Meeting
In her speech at ADB’s 2022 Annual Meeting, ADB Vice-President for Finance and Risk Management Roberta Casali, stressed the importance of finance as a key enabler to provide concrete solutions and foster sustainable development. As examples of how ADB helps develop the market for green, social, sustainability, and other labelled (GSS+) bonds to tackle climate change challenges, she highlighted the technical support to the Government of Thailand by the ACGF to issue several GSS+ bonds, including ASEAN’s first local currency sovereign sustainability bond. In 2020 and 2021, the ACGF supported three Thai bonds with the Public Debt Management Office (PDMO) and the National Housing Agency (NHA) that raised a combined $5.6 billion.
Export-Import Bank of Thailand issues its first green bond with the support of ADB and the ACGF
On 9 September 2022, the Export-Import Bank of Thailand (EXIM Thailand) issued a THB5 billion Thai baht ($135 million) green bond with 3- and 4-year maturities, following the Association of Southeast Asian Nations (ASEAN) green bond standards. The bond was sold to Thai institutional investors and high-net-worth investors, and the proceeds will be used to finance solar and wind energy projects, setting an example of how financial institutions can play a critical role in mobilizing public and private capital for green and social projects. EXIM aims to expand its green portfolio to THB100 billion by 2027 in accordance with the government’s Bio-Circular-Green (BCG) economic model.
ACGF holds innovative finance clinic to identify new electric mobility projects in Southeast Asia
The ACGF delivered a two-day in-person Innovative Finance Clinic on E-mobility for Green Urban Transport on 8 to 9 September 2022 in Singapore in partnership with Infrastructure Asia, the Urban Climate Change Resilience Trust Fund, and the E-Asia Knowledge Partnership Fund. The clinic identified five new potential public-sector electric vehicle (EV) projects that could be supported by the ACGF and gathered 84 participants actively working on electric mobility and showcased case studies from Chile, India, People's Republic of China, Republic of Korea, Thailand, and Singapore to discuss structuring, planning, financing, and procuring electric vehicle projects.
ADB VP Lavasa brings up ACGF in T20 Indonesia Summit remarks
At the T20 Summit 2022 in Bali, Indonesia, ADB Vice-President for Private Sector Operations and Public-Private Partnerships Ashok Lavasa highlighted the ACGF in his keynote address for the plenary session Smoothing Green and Just Energy Transition as one of ADB’s approaches to attracting “more private sector interest in the green transition”. The summit served as the final event of the network of think tanks and research institutes in G20 and developing countries.