Development of Green Bonds in Asia Climate Contributions and Stakeholder Dynamics

Development of Green Bonds in Asia: Climate Contributions and Stakeholder Dynamics

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The Paris Climate Agreement lays a solid foundation for mobilising the capital market for climate mitigation and adaptation actions. This can include a wide variety of funding sources, instruments and channels. Green bonds, as debt securities that finance or refinance environmental projects, have been growing rapidly and are recognised as one of the primary instruments for tracking the finance flow and responding to the investment needs of programmes to address climate change.

This report assesses the extent to which green bonds help Asia meet the Paris Agreement, and delivers a mapping and analysis of the key green bond actors and stakeholders in Asia. Carbon Care Asia (CCA) is engaged in conducting desktop research, which covers Asian emerging markets, including China, Hong Kong, Indonesia, India, Malaysia, Philippines, Singapore and Thailand. CCA collects data for green bonds issued between January 2018 to June 2020 and undertakes an assessment of the range of actors and stakeholders involved in the green
bond market and 373 green bond deals.

Product details
Date of Publication
3 March 2021
Heinrich Boell Stiftung Asia Limited
Number of Pages
Language of publication
Table of contents

1. Introduction
2. Climate governance and sustainable financial system development
3. Analysis of green bonds’ contribution to the Paris Agreement
3.1. NDCs do not equal the achievement of Paris Agreement
3.2. Green bonds issuances in the markets covered
3.3. Green bonds and NDCs in Asia
3.4. NDCs comprise two main aspects: mitigation and adaptation
3.5. The potential of sovereign green bonds
3.6. The measurement and disclosure of Asian green bonds’ impacts not aligned
3.7. Market participants facing challenges
4. Analysis of key stakeholder groups’ contributions
4.1. Regulators
4.2. Issuers
4.3. Underwriters
4.4. External reviewers
4.5. Legal advisors
4.6. Investors
4.7. Civil society
5. Recommendations
5.1. Raise reporting standards and increase transparency
5.2. Build an underlying project database for green bonds
5.3. Strengthen stakeholder participation in market development