BDO joins Asian banks on transition finance guidelines
2022 September – BDO Unibank joins leading Asian banks in advancing energy transition finance with the publication of the Asia Transition Finance Guidelines and the Asia Transition Finance Activity Report, aimed at helping Asian economies achieve a “just and orderly transition” toward a more sustainable future.
BDO is a member of the Asian Transition Finance Study Group (ATF Study Group) that drafted the guidelines in pursuit of an Asian version of transition finance that is more realistic and achievable for Asian nations. The reports, the Asia Transition Finance Guidelines, and the Asia Transition Finance Activity Report, 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 will play in helping Asian economies move toward net-zero emissions and the challenges they will face. Its 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 two reports are aimed at distinct audiences. The ATF Guidelines, which are primarily for financial institutions, include technical guidance and transition support for transition finance assessment. 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.
BDO 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 United States. But in collaborating with others, BDO welcomes the opportunity to bring everyone towards the same direction and better manage the energy transition for Asian nations.
BDO will continue to expand its Sustainable Finance initiatives, in place since 2010, towards funding new and existing renewable energy projects to increase their capacity, and support the country’s avoidance of greenhouse gas (GHG) emissions.
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 (AETI), 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 ATF Study Group’s new reports were released today at the second ministerial meeting, with hopes they will encourage further understanding of transition finance across Asia.
The ATF Study Group will continue to collaborate with broader stakeholders and meet regularly, working to update and enhance the ATF Guidelines, collaborate further with stakeholders, and encourage implementation of transition finance.
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