Climate vulnerability not only affects countries’ cost of capital, the macro financial risks from climate change can also amplify sovereign risks. Given this, climate-resilient infrastructure is top of mind for many governments. The Asian Development Bank estimates that Asia requires US$1.7 trillion a year in vital climate compliant infrastructure between 2016 and 2030. The Asian bond market is expected to play a key role in helping to finance these investments. We learn more in this article from Eastspring.
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The pressing need to build climate resilient infrastructure, and the potential boost to economic growth from such an endeavour has made green infrastructure a priority for many Asian governments. We expect the Asian bond market to play a key role in helping to finance these investments, which will in turn create more diverse opportunities for bond investors.
The Asian Development Bank estimates that Southeast Asia alone requires USD210 bn/year in vital
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