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Figure 1. Elements of sustainable finance

Source: Dina A & Brantley L (2020), Introduction to the Special Issue: Scaling
Up Green Finance in Asia
In the ASEAN region, green finance flows are estimated at US$ 40 billion a year,
too small compared to the average need of US$ 200 billion a year until 2030 - with an

estimated total of about US$ 3 trillion 148 , in which investment spans the following fields:
infrastructure (US$ 1,800 billion), renewable energy (US$ 400 billion), energy
efficiency (US$ 400 billion), food and agriculture (US$ 400 billion). About 75% of
current flows come from public finance and 25% from private finance, largely in the
form of commercial loans. Due to green finance from the public sector is predicted to
decrease by 40%, private green finance will need to scale up more than 10 times to meet
demand.

Infrastructure - the backbone of Southeast Asia's economic growth - is facing a
shortage of investment capital of more than US$ 100 billion a year. Addressing
investment shortfalls and transitioning to green infrastructure are major challenges.
Public financing is insufficient to meet the huge investment demand, while a lack of
commercially attractive projects continues to limit the flow of private capital into
infrastructure in Southeast Asia. In order to close the gap, private capital needs to play

a larger role in financing infrastructure projects. Private sector financiers are very

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