Asia’s Sustainable Finance in Action: Highlights from Climate Bonds CONNECT APAC 2025

Ronald Young, Head of Sustainable Banking Development at the Hong Kong Monetary Authority, shared that Hong Kong’s Phase 2A Taxonomy, with Climate Bonds as technical partner, is now open for public consultation, expanding from 4 sectors/12 activities to 6 sectors/25 activities. Transition finance and climate adaptation are added to reflect regional needs. Hong Kong’s market continues to lead, with green and sustainable bonds ranking #1 in Asia since 2018, supported by the government’s Green Finance Grant Scheme and fintech initiatives.

Zhang Bei, Deputy Director-General of the Research Bureau at the People's Bank of China, highlighted China’s progress in transition finance. Pilot trials in steel, coal, power, building materials, and agriculture have issued ¥6B in transition loans, with expansion to shipping and chemicals underway. She highlighted the central bank’s role in setting standards, enabling markets, and coordinating with participants to scale sustainable finance.

Mei Shinohara, Deputy Director, Sustainable Finance Office, Strategy Development Division, Financial Services Agency of Japan, shared the Asia GX Consortium is scaling transition finance across ASEAN and Japan. Japan’s carbon market has grown fivefold since 2014, showing how carbon pricing drives corporate change. Clear transition guidelines and collaboration are key to accelerating Asia’s sustainable finance journey.

Shijun Dong, Deputy Director at Bond Supervision Department of China Securities Regulatory Commission, emphasised that while China’s market is large, practical details like certification, local taxonomies, and post-issuance inspections must be addressed to enable genuine foreign participation.

Ephyro Luis B. Amatong, former commissioner of The Philippine Securities and Exchange Commission, shared that ASEAN’s introduction of regional standards in 2017 has catalysed USD 70B in labelled sustainable bonds across ten diverse markets. The focus now is on scaling up through partnerships, regulatory incentives, and dialogue. These efforts are turning sustainability from compliance into strategic investment and showcasing Asia’s leadership in driving private sector action despite market and macro challenges.

Session 2: Driving Sustainable Transitions at Scale: Operationalizing Transition Finance in Asian Market

The second panel dived deep into how practical strategies and regulatory guidance can channel investment into hard-to-abate sectors.

Globally, the demand-over-supply dynamic is the most important factor behind issuing sustainable bonds. Chaoni Huang, Head of Sustainable Capital Markets for Global Markets Asia Pacific at BNP Paribas shared that in Asia, roughly USD6.8bn in transition funds are ready to invest, while only about USD3bn in transition bonds are available. She noted that transition finance hinges on real economy change, especially Asia’s costly early coal retirements and just transition challenges.

Charles Nguyen, Head of ESG Asia at Neuberger Berman, highlighted alignment as another key challenge: only around 40% of institutions have net-zero targets, frameworks differ, and internal teams often lack a shared language. Cross-learning and capacity building are essential to harmonise ambitions and actions across the ecosystem.

Ting Li, China Representative of RMI, pointed out that Asia, especially China and other emerging markets, faces the challenge of decarbonising while still undergoing industrialisation and urbanisation. Decarbonisation in Asia requires both ambition and scale: scaling down emissions-intensive industries, scaling up clean energy, and scaling fast enough to match the urgency of climate change.

Roman Novozhilov, Head of the ESG Division at the New Development Bank (NDB) shared that supporting transitions at the NDB relies on three key principles: just transition, no significant harm, and avoiding carbon lock-in. He emphasised that demand for transition funding is huge, and credible labels are essential to unlock this capital for infrastructure and societal transition.

When it comes to pricing transition bonds, David Yin, Director of Sustainable Bonds Global Banking at Standard Chartered Bank, explained that it’s more complex than green bonds, where a “green minimum” sets a small premium. For transition bonds, investors need credible credit and transition stories to trust issuers are genuinely moving from brown to green. First-time issuers may pay an “insurance premium,” but it changes over time as the issuers establishes credibility. MSCI’s analysis of 2,876 USD corporate bonds shows those aligned with decarbonization targets enjoy a 6.9–11.4bps pricing benefit, reflecting lower risk and long-term value.

Asia has both the capital and the frameworks to scale transition finance. However, coordinated action, credible labels, and ambitious implementation across the ecosystem will be critical to turn potential into real-world impact.

Session 3: The Investable Universe – What Lies Ahead?

At the third session, experts discussed the rapidly expanding GSS+ investable universe and how capital can flow to drive green and resilient development across the region.

Torsten Albrecht, Principal Investment Officer, Fixed Income & Structured Products at AIIB, highlighted mobilising private capital through anchor orders, climate-aligned frameworks, and guaranteed products, and guaranteed products. He noted that resilience investments focus on reducing long-term risk rather than generating immediate returns.

Building on this, Frank Tsui, Head of Responsible Investment Development of Amundi Asia ex Japan, explained how asset managers bridge supply and demand for MDB investments. Key approaches include pre-investment steps like developing proprietary frameworks and structuring mandates to enhance returns, and post-investment engagement that connects the ecosystem to align products and attract private capital. 

Tomomi Shimada, Head of Sustainable Investing Specialists APAC at JPMorgan Asset Management, emphasised the role of taxonomies, particularly the Common Ground Taxonomy (CGT). She shared how asset owners increasingly seek transparency and intentionality, and how JPMAM’s CGT Bond Fund offers a diversified, high-credibility portfolio, demonstrating strong investor demand for harmonised frameworks.

Antoine Rose, Head of Sustainable Banking for Asia-Pacific and Middle East at Crédit Agricole CIB, noted that Asia’s sustainable bond market is growing steadily, with benchmark deals gaining traction. A standout was China’s sovereign CNY bond in London, 8x oversubscribed, signalling strong demand. Sovereign issuance plays a vital role in providing liquidity, setting benchmarks, and driving credible impact on sustainability goals.

Chiara Trabacchi, Climate Adaptation and Resilience Lead at IFC, highlighted booming opportunities in adaptation and resilience are projected to grow from $2 trillion to $9 trillion by 2050. Key opportunities lie in energy, food, and water security, with solutions ranging from precision agriculture and sustainable cold storage to water reuse and resilient energy technologies.

Climate risks are rising, but solutions exist. Acting decisively—scaling markets, boosting deals, and enforcing policies—can build resilience and avert catastrophe. Urgent action today will allow us to celebrate meaningful progress in the years ahead.

Our heartfelt thank you to all our speakers, sponsors, and participants for making Climate Bonds CONNECT APAC 2025 such an inspiring and impactful event.

‘Till the next time, 

Climate Bonds