ASEAN economies’ exposure to climate transition risks

The Climate Bonds' Policy Team completed a report examining ASEAN central banks’ exposure to climate transition risks with a particular focus on Indonesia, the Philippines and Vietnam.

How the report reflected on these risks was by doing an analysis of combined data from credit filings by banks to the central bank supervisory section, bonds data collected by Asia Bond Monitor and “bottom-up” deal level data extracted from commercial databases of lending and bond issuance.

The primary recommendation from the data analysis was on how the taxonomies under development could be used to ensure banks are able to track their climate transition risks exposure through their portfolios.

We would like to encourage a conversation about the report’s findings on challenges to the financial sector in re-directing lending from fossil fuel to renewables and potential actions central banks might take to support the transition.