Public sector’s role key to energizing sustainable bond markets in Asia: IEEFA

The Institute for Energy Economics and Financial Analysis (IEEFA) has highlighted the crucial role of public sector involvement in advancing sustainable bond markets across the ASEAN+3 region, which includes Southeast Asia, China, South Korea, and Japan. In a recent report, IEEFA pointed out that the region’s sustainable bond markets lag behind Europe due to limited public sector participation, affecting market development and investor confidence.

Europe’s success in sustainable bonds is driven by strong public sector engagement, credible taxonomies, and well-developed infrastructure for green instruments. For ASEAN+3 to unlock the full potential of its sustainable bond markets, increased public sector participation is essential, particularly in creating liquidity, setting benchmarks, and closing investment gaps in sustainable projects.

IEEFA recommends that ASEAN+3 countries draw inspiration from Europe’s approach by implementing robust regulatory frameworks and active issuance strategies to foster market growth.