Abstract:

The world faces a dual environmental crisis through climate change and biodiversity loss. State-owned
enterprises (SOEs) are in a unique position to take a leading role in confronting these challenges and shifting economic activity from polluting to green. This requires a shift in existing business models, particularly in the energy, finance, transport, and water sectors, which in Asia are traditionally dominated by SOEs. This shift requires billions of (United States) dollars in financing, and will unleash investments in green and resilient economies, innovation, and jobs. However, a failure to green SOEs risks climate and natural catastrophes. The report explores how SOEs can develop and deploy sustainable financial instruments, in particular green bonds, to help finance their green transition. To accelerate the successful adoption of green finance tools in Asia's emerging economies, the publication examines how their SOEs can improve operations to make better use of green capital markets, enabling a healthier environment and a more resilient future.