MANILA, Philippines — BDO Unibank has partnered with leading Asian banks as it ramps up efforts in advancing energy transition finance to achieve a “just and orderly transition” toward a more sustainable future.
The country’s largest bank believes that its sustainability journey, along with other Asian financial institutions, will be more gradual in pace compared to counterpart banks in Europe and the US.
The bank welcomes the opportunity to bring everyone toward the same direction and better manage the energy transition for Asian nations by collaborating with others.
According to BDO, it would continue to expand its sustainable finance initiatives, in place since 2010, toward funding new and existing renewable energy projects to increase their capacity and support the country’s avoidance of greenhouse gas emissions.
With the publication of the Asia Transition Finance (ATF) guidelines and the Asia transition finance activity report, BDO and its partners will help Asian economies achieve a more sustainable future.
BDO is a member of the ATF study group that drafted the guidelines in pursuit of Asian version of transition finance that is more realistic and achievable for Asian nations. The reports were created after months of discussion among the core bankers, joined by development banks, export credit agencies, public agencies and finance associations.
Led by MUFG Bank of Japan, the ATF study group was set up in recognition of the important role that transition finance plays in helping Asian economies move toward net-zero emissions and the challenges they face.
The goal is to create practical recommendations to supplement existing frameworks, including global standards and taxonomies, when financial institutions consider and assess transition finance cases.
The ATF guidelines, which are primarily for financial institutions, include technical guidance and transition support for transition finance assessment. On the other hand, the ATF Activity Report, which is for broader stakeholders, is made up of a list of support items the study group believes is needed to encourage greater stakeholder engagement.
The ATF study group’s activities are in alignment with the “Asian version of transition finance,” one of the key pillars of the Asia Energy Transition Initiative, introduced by the government of Japan to bolster energy transition in Asia.
Ministers of Asian countries endorsed the ATF study group’s activities at the first meeting of the Asian Green Growth Partnership Ministerial Meeting in April.
The group vowed to continue collaborating with broader stakeholders and meet regularly, working to update and enhance the ATF guidelines, and encourage implementation of transition finance.