FINANCE FOR CLIMATE ACTION IN ASIA AND THE PACIFIC: A Regional Action Agenda to Access Debt Capital Markets

FINANCE FOR CLIMATE ACTION IN ASIA AND THE PACIFIC: A Regional Action Agenda to Access Debt Capital Markets

Date: 
Monday, December 18, 2017
Type: 
Manuals, guidelines, training materials
Abstract

Debt capital markets are a critical channel for countries to achieve their objectives under the Paris Agreement. In 2016, US$ 7 trillion was raised globally through debt capital markets, yet only a negligible portion of this was for “green” investment. Most climate-vulnerable, Least-Developed Countries (LDCs), Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDSs) in the region cannot independently raise finance through this channel due to their low credit quality and the perceived risks, including small market size, underdeveloped local capital markets, and gaps in capacity and knowledge to identify suitable project pipeline or to create suitable instruments.

This report presents an array of practical policy actions that can help these countries access the emerging green bond markets in the region. It presents a vision for a regional initiative that would bring together state and non-state actors to work with climate-vulnerable LDCs, LLDCs and SIDS from the Asia-Pacific region to take the “concept to market” and help these countries to tap green debt capital markets.

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