ABSTRACT
To place the Asian economies onto a sustainable development pathway requires an unprecedented shift in investment away from greenhouse gas, fossil fuel and natural resource intensive industries toward more resource efficient technologies and business models. The financial sector will have to play a central role in this green transformation. Green finance is defined as comprising “all forms of investment or lending that consider environmental effect and enhance environmental sustainability” (Volz et al. 2015: 2). Important aspects of green finance are sustainable investment and banking, where investment and lending decisions are taken based on environmental screening and risk assessment to meet sustainability standards, as well as insurance services that cover environmental and climate risk.
