So, the great hyped ASEAN report outlines the ways in which the ASEAN region can achieve global finance investment and protect the people, its economies, and the environment of the region.
The report highlights a detailed analysis of the green investment projects from 2016 to 2013, evaluating the nature of each of these opportunities and giving us an estimation of the current green finance cash flows and evaluation of the characteristics of the opportunities.
According to an expert interview and literature review, the report also talks about some of the obstacles in scaling up the ASEAN Green financing and strategies for tackling them.
The findings and analyses of the report show that the rising demand for additional ASEAN green investment from 2016 to 2030 is approximately 3 trillion USD.
The study also highlights opportunities that represents a new green investment market, which is roughly 37 times the size of the Green bond market from the year 2016.
But as they say, it was a scholars’ report, and it was extremely well organized and gave a detailed breakdown of how the investment is sread across four categories:
- At number one, we have 1,800 billion USD allocated for infrastructure.
- The second one is an allocation of 400 billion USD for the renewable energy sector.
- At number three, we have again 400 billion USD for energy efficiency
- Last but not least, we have 400 billion USD again for food land use and agriculture
The very publication page and report titled Green Finance Opportunities in ASEAN highlights a summary of the efforts between DBS Bank and the United Nations Environment Program to implement the SDGs in the ASEAN region.
The following talks about some of the key highlights and information regarding the publication and the report outcome.
But before we proceed to the main highlight, let’s talk about what DBS bank and what the UNEP environment inquiry do.
DBS Bank is one of the market-leading financial service groups in Singapore, with nearly 280 branches across 18 different markets.
Starting from consumer banking to institutional banking wealth management, DBS bank has been a name of trust where you get a wide range of services.
The leading company is also famous for taking initiatives to promote green energy in finance and helping sustainable development progress.
And we believe we already know what the UN environment inquiry is.
It’s basically the initiative begun by UNEP, who came up with the zeal and an aim to craft a sustainable financial system that can encourage people to gather capital for a green and inclusive economy.
Since 2014, it has been actively working with countries that have good reputation in working with green projects several so that the trajectory toward sustainable financial development becomes smooth.
The collaboration with DBS talks about the aims and the actionable items that are required to establish green finance.
The foreword of the report highlights the transitional journey to achieve sustainability goals and conquer obstacles like environmental degradation and abrupt climate changes.
Financial corporations and institutions have a significant role because they can provide innovative financing solutions and green funds and help progress toward sustainable development goals.
The report also emphasizes that working towards green finance is not only crucial for a healthy environment and protecting it but also talks about significant business opportunities related to it.
The structure of the report is mainly divided into five classes:
- The first one underscores the dire need for establishing green finance and highlights why ASEAN must work on sustainability and prioritize it.
- The second part of the report explains the definitions of key concept typologies related to Green finance development that is required and should be known by every individual.
- The third section gives an estimation of the investment required for the demand and the analysis using two approaches, namely bottom-up and top-down.
- The fourth classification of the report revolves around supply analysis and gives an assessment of the current green finance flow and the resources.
- The 5th and last section of the report gives a subtle hint of the barriers and respective solutions.
This section helps to identify the potential obstacles that may arise in scaling up green finance and also underlines the proposed actionable measures and strategies.
