Sydney, Australia, June 23—A new report
by the IFC-facilitated Sustainable Banking Network (SBN) shows Bangladesh,
Mongolia, and Nepal have identified green finance as a top priority
for sustainably developing their financial sectors.
The report— “Necessary
Ambition: How Low-Income Countries Are Adopting Sustainable Finance to
Address Poverty, Climate Change, and Other Urgent Challenges”—says
these countries face immediate and significant impacts from climate change,
pollution, biodiversity loss, and social inequality that require urgent
In the wake of the challenges, the report says in Asia, promoting green
finance, such as green bonds and green loans, is particularly a focus in
Bangladesh and Mongolia. The two countries, along with Nepal, are also
working on developing national sustainable finance roadmaps as part of
efforts to reduce market risk and incentivize green finance flows.
“At a time when low-income countries across Asia and the Pacific are being
adversely impacted by COVID-19, it’s all the more vital for countries
to embrace sustainable financial development to build resilience for the
future,” said Nena Stoiljkovic, IFC’s Vice President for Asia and Pacific.”
The report highlights these Asian countries are resolute in their commitment
to promoting sustainable finance and going green in planning for the future.”
CEO and a Board Member of the Mongolian Sustainable Finance Bankers Association
and Co-chair of the SBN IDA Task Force, Naidalaa Badrakh says there is
positive evidence of changes in the way banks are managing environmental
and social risks, compared to five years ago.
In addition to green finance, the report shows the three Asian countries
are also exploring ways to expand sustainable finance to other areas such
as financing for small and medium sized enterprises and agriculture.
“In the context of a circular economy, resource efficiency is key. Thus,
sustainable finance has a larger role to play in poverty reduction,” said
Asif Iqbal, Joint Director, Sustainable Finance Department at Bangladesh
Bank, the country's central bank.
Dev Kumar Dhakal, Executive Director of the Nepal Rastra Bank, the central
bank of Nepal, said "The country should develop and implement sustainable
finance related policies for a better and safer financial system. These
policies should not be detrimental to development activities, rather should
guide the initiatives taken".
Last year, IFC’s green bonds issuance in Asia-Pacific crossed $1 billion,
addressing environmental and social challenges in some of the world’s
most vulnerable and poorest countries. Last month, Mongolia’s Financial
Regulatory Commission and IFC signed an MoU to further develop the market
for green finance in Mongolia.
Established in 2012, SBN is a voluntary community of financial sector regulatory
agencies and banking associations from emerging markets committed to advancing
sustainable finance. The first global network of its kind focused on sustainable
finance at market level, SBN represents 39 countries and US$43 trillion
(86 percent) of the total banking assets in emerging markets. SBN members
are committed to moving their financial sectors towards sustainability,
with the twin goals of improved environmental and social risk management
(including disclosure of climate risks) and increased capital flows to
activities with positive climate, environmental, and social impact. IFC
is Secretariat and technical partner, assisting members to share knowledge
and access capacity building that helps them design and implement national
sustainable finance initiatives. For more information, visit www.ifc.org/sbn.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work in more than 100 countries, using our
capital, expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2019, we invested more than $19 billion
in private companies and financial institutions in developing countries,
leveraging the power of the private sector to end extreme poverty and boost
shared prosperity. For more information, visit www.ifc.org.