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preparation and financial support, the ACGF provides knowledge training services to
strengthen the legal environment and build institutional capacity for ASEAN to scale up

green infrastructure investment. Renewable energy projects alone will add US$25
billion to GDP and create 1.7 million jobs in the ASEAN region by 2030 149 .
In 2021, ASEAN issued a record high in Green, Social and Sustainable debt (GSS)
reaching US$ 24 billion, an increase of 76.5% compared to US$ 13.6 billion in 2020 .
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Sustainability-linked debt reached US$ 27.5 billion, an increase of 220% compared to
US$ 8.6 billion in 2020. As of 31 March 2023, the total ASEAN-labeled Green, Social
and Sustainability Bonds issued amounted to US$ 40.14 billion of which US$ 10.03
billion or 25% were issued by Philippine companies 151 . The growth rate of GSS debt

and sustainable linked debt reflects the ASEAN region's positivity in allocating capital
resources for the purpose of responding to the COVID-19 pandemic in addition to
supporting sustainable economic growth with climate change and long-term low
carbon emissions.
In ASEAN, the banking sector plays a central role in financing climate change
mitigation and adaptation. In addition to regional characteristics such as government

structure, financial services and capital market sectors and other unique characteristics,
the ASEAN banking system has three characteristics:
First, the prominence of the banking system. ASEAN banks have a relatively more
prominent role in the financial sector, with loans accounting for more than 80% of debt
capital in many ASEAN economies.
Second, government’s ownership prevails. Governments own large stakes in the
banking sector, driven by close working relationships such as: sustainable development,

climate finance.
Third, bank-centric policy. Strong collaboration between the public and private
sectors has resulted in bank-centric climate finance policies, thus placing ASEAN banks
in an ideal position to benefit.
3. Solutions for increasing green finance in ASEAN
Southeast Asian countries recognize that to achieve their sustainable development

and climate change goals, infrastructure must be designed, built, and operated based on
the principles of sustainability and inclusive green growth. In other words, ASEAN must
invest in “green infrastructure” that is environmentally sustainable, low-carbon, climate-
resilient, and meets the needs of local communities.
The ASEAN government is focusing on implementing strategies and plans that
make good use of various resources from both the public and private sectors, using green
and innovative financial approaches to catalyze the necessary investments for
infrastructure to adapt to climate change in the region. In fact, there is no unique solution

that will bring the necessary green finance to ASEAN. In order to help

149 According to Sustainable Energy for All
150 ASEAN Sustainable Finance 2021 (hsbc.com)
151 2023CM_Sustainable-Finance-Market-Update-as-of-March-2023_v2.pdf (sec.gov.ph)
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