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COVER STORY

Modern measures

Green finance programs and other initiatives to promote sustainable
financial markets are experiencing robust development throughout
Asia and driving growth in green bonds.
By PHUONG HOA

investment opportunities. This collective
effort in Asia-Pacific countries underscores
the region’s proactive approach in sup-
porting the global agenda for sustainable
development and highlights a transfor-
mative period in the integration of sus-
tainability within financial systems.
“These governments are working hard
to provide guidance for issuers, businesses,
and investors on sustainable classification
to promote sustainable financial markets,”
Mr. Lee told seminar participants. “And
these supportive policies have created a
favorable environment for sustainable
development in the region.”
One noteworthy illustration of sustain-
able classification can be found in Singa-
pore, which has evolved into a thriving
hub for sustainable finance. With a focus
on achieving significant milestones, the
island state has dedicated efforts to devel-
oping robust classification systems aimed
at standardizing the market. A recent
milestone along this journey was the com-
pletion of the Singapore-Asia Taxonomy,
a comprehensive tool designed not only
to pinpoint key assets but also transitional
assets, thus providing a nuanced under-
standing of sustainable investment oppor-
tunities in the region.
ddressing the “Developing the Cor- shift is reflective of a broader commitment
porate Bond Market by 2030: A to integrating environmental, social, gov- In Japan, though a specific green clas-
A Perspective from Credit Ratings” ernance (ESG) criteria into financial deci- sification system has not been established
seminar, jointly organized by Vietnam sion-making processes to promote long- as yet, a different approach is being taken
Economic Times (VET) / VnEconomy / term economic resilience and ecological by providing detailed roadmaps for each
sector. These roadmaps guide the type of
Tap chi Kinh te Viet Nam, Moody’s Ratings, stewardship. Countries such as South assets to invest in across eight different
and VIS Rating on May 17, Mr. Jeffrey Korea, China, Malaysia, and Indonesia sectors, flexibly and creatively promoting
Lee, Regional Manager APAC Sustainable have initiated the adoption of sustainable sustainable development.
Finance, Moody's Ratings, highlighted classification principles, aiming to stan-
several key points in the development of dardize and promote investments that Boom in green
green bonds and the sustainable finance contribute to sustainability goals. financial support
market in various Asian countries, includ- Notably, Thailand and Singapore have Green and sustainable financial support
ing Vietnam. He emphasized the increasing made significant strides forward by com- programs are thriving throughout Asia,
importance of sustainable financial prac- pleting their sustainable finance classifi- to offset the high administrative costs
tices and the growing trend towards green cation systems, setting benchmarks for associated with issuing green bonds com-
bond issuances in the region, driven by a other nations in the region. Australia is pared to regular bonds, including consulting
host of initiatives and support policies. also actively developing its own version and independent evaluation fees from
of a sustainable classification framework, organizations like Moody’s Ratings. Green
Sustainability demonstrating a commitment to align
classification its financial sector with global sustain- bond support programs are being imple-
Amid global trends towards sustainable ability standards. Vietnam, meanwhile, mented in Japan, Hong Kong (China),
development, the classification of green is participating in the regional movement, China, and Singapore, offering incentives
and sustainable finance has become an introducing several initiatives designed that make it easier for businesses to access
increasingly important component of to integrate sustainability into its financial sustainable financing. “These initiatives
financial policies for governments and practices and enhance its appeal among have helped ease financial barriers and
promote the development of sustainable
financial institutions across Asia. This international investors seeking sustainable
financial markets,” Mr. Lee added.

20 Vietnam Economic Times May 27, 2024 en.vneconomy.vn