Representatives from public and private sectors in the Association of Southeast Asian Nations (ASEAN) gathered in Vientiane, Lao PDR, to discuss strategies for financing a resilient and inclusive transition to low carbon growth, aimed at mitigating climate change impacts.
The Bank of Lao PDR, in partnership with IFC, co-hosted the regional conference, “Promoting Green Finance in ASEAN,” as part of the 27th ASEAN Senior Level Committee on Financial Integration Meeting. Decision makers from governments, financial institutions, and industries convened to address topics such as the regulatory environment’s role in facilitating green finance, barriers to scaling climate finance, and opportunities for the private sector in attracting funding for climate-smart initiatives.
Despite being among the world’s most vulnerable to climate change, ASEAN member states have set ambitious goals for achieving net zero emissions. However, substantial financing is required to meet these targets. For instance, in the power sector alone, annual investments in clean energy will need to increase significantly—from $30 billion in 2022 to over $200 billion per year by the early 2030s—to align with the Paris Agreement, as per a recent report.
Bounleua Sinxayvoravong, Governor of the Bank of Lao PDR, emphasized the need for a collaborative response to climate action. He highlighted the importance of leveraging insights and experiences from both public and private sectors to scale sustainable financing flows and achieve the region’s climate and development objectives.
With support from IFC, the Bank of Lao PDR is developing a sustainable finance policy framework to establish standards and guidelines for green lending and thematic bonds issuance, while enhancing the capacity of regulators and market participants in the country.
Thomas Jacobs, IFC Country Manager for Viet Nam, Lao PDR, and Cambodia, underscored the crucial role of private capital in addressing the climate financing gap. He emphasized the importance of collaborative efforts across stakeholders to create conducive conditions for unlocking green finance, thereby driving economic growth, job creation, and environmental sustainability in the region.
The conference witnessed the participation of nearly 140 finance regulators and officials representing ASEAN member countries, relevant ministries in Lao PDR, development partners, business associations, financial institutions, and other stakeholders.
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