- Developing the Sustainable Bond Market in ASEAN+3
It notes that renewable energy and energy efficiency are seen as promising sectors for the development of green bonds. It suggests how policymakers and development partners can help expand the issuer base and increase local demand for sustainable bonds, increase project bankability, and create an enabling ecosystem.
The sustainable bond market in ASEAN+3 represents a tiny proportion of the region’s total
bond market. This highlights significant opportunities for expansion.
- Compared with the European Union, the sustainable bond market in ASEAN+3 has distinctive characteristics: (i) a shorter average maturity; (ii) a lower proportion of rated sustainable bonds; and (iii) a lower proportion denominated in local currency.
- According to a survey conducted by the Asian Development Bank and the Global Green Growth Institute, a majority of ASEAN investors and underwriters have a strong interest in green bonds, but they lack resources and relevant technical capacity.
- Renewable energy and energy efficiency are the two most promising sectors for green bond issuance and investment.
- Regional collaboration and integration can help advance market development.