Indonesia: Checklist of best practices to better enable sustainability-linked infrastructure financing needed

Author: Muhamad Al Azhari, Jakarta Globe, Published on: 14 April 2019

"Attracting Private Financing for Green Projects Needs Concerted Efforts: HSBC", 10 April 2019

Sustainable finance, aka financial services that pay special attention to their environmental, social and good governance aspects, can reduce gaps in infrastructure financing—a constraint that has held back long-term growth in Southeast Asia, top executives at London-based lender HSBC said.

...Countering climate change has been quite a challenge for many Asean member countries as they also feel the need to avoid economic as well as environmental harm.

However, HSBC said in the note that "the challenge also represents a tremendous opportunity associated with the transition to a low carbon economy and positioning Asean as a leader in sustainability."

"Addressing environmental challenges is no longer simply a moral dimension but an economic one. The development of sustainability-linked infrastructure using public and private sector financing is the only way that Asean can address the challenges that climate change presents to its economies," Mukthar Hussain, HSBC's Head of Business Corridors for Asia-Pacific, said.

...Attracting private financing for sustainability-linked infrastructure development in Asean member countries has been undeniably challenging.

..."To date, there is no single, standardized, validated and dedicated report that governments, international organisations, development banks and the private sector can rely on to evaluate progress and identify opportunities for further improvements in the Asean region," HSBC said in a separate statement.

Partnering with multilateral organisations, the report aims to provide, among others, "a checklist of best practices that countries and cities can consider to better enable financing of sustainability-linked infrastructure."

This initiative can also offer periodic progress reports on green investment and efforts to promote financing for sustanable infrastructure by Asean member states....

 

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Related companies: HSBC