Catalysing green bonds in ASEAN+3 countries to mobilise finance for energy market transformation

Event: International Association for Energy Economics
Date: June 10-13, 2018; Groningen, Netherlands
Conference Paper
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Southeast Asia energy demand, which increased by 60% in the past fifteen years, is expected to further rise by two-thirds over the next twenty years, thus accounting for one-tenth of global energy demand by 2040.The investments needed to meet a growing energy demand in the ASEAN region will call for the mobilisation of both the public and the private sector. Green bonds are a debt capital market instrument to connect investors seeking impact investments to projects in emerging countries. Although still relatively quiet, the market for green bonds in Southeast Asia is also reporting some activity. The recently released ASEAN Green Bond Standards (ASEAN GBS) and the sovereign issuance by the Government of Indonesia and several corporate issuances are clear steps towards the development of a rich and dynamic regional green bond market. ASEAN countries have now the opportunity to leapfrog from carbon-intensive development paradigms to greener and more resilient economies.