Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238430 
Year of Publication: 
2020
Series/Report no.: 
ADBI Working Paper Series No. 1073
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
Mobilizing private finance for renewable energy and energy efficiency is critical for the Association of Southeast Asian Nations (ASEAN) not only for the reduction of global temperature rise, but also for meeting fast growing energy demand. Two-thirds of green bonds issued in ASEAN countries were used to finance renewable energy and energy efficiency projects. This paper provides a review of green bond issuances and green bond policies in ASEAN countries. Issuance of green bonds in top three green bond issuing countries in ASEAN, i.e., Indonesia, Malaysia, and Singapore, are reviewed in detail. The review of green bond issuance and green bond policies show that green bond policies in ASEAN countries are effective in promoting green bond issuance. However, this does not mean that green bond policies are effective in promoting renewable energy and energy efficiency projects in ASEAN countries. Proceeds of green bonds issued in ASEAN countries can be used for financing projects abroad or refinancing past loans, thus not necessarily promoting green investments in ASEAN countries. This paper provides policy recommendations for promoting renewable energy and energy efficiency financing using green bonds in their countries. To promote renewable energy and energy efficiency, policy makers should consider limiting eligibility criteria in policies supporting green bonds supporting policies, such as green bond grants, to only domestic projects and/or limiting refinancing using green bonds.
Subjects: 
Green bonds
sustainable finance
green bond grant
green bond standards
ASEAN
sustainable and responsible investment
green sukuk
JEL: 
Q28
Q42
Q48
Q58
G18
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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