Supporting Asia-Pacific governments in their carbon neutrality ambition

Crédit Agricole CIB is committed to accompanying Asia-Pacific governments with their sustainable bond issuances to finance their environmental projects and support their carbon neutrality ambition.

Future environmental conservation and sustainable ESG modernization development by using technology of renewable resources to reduce pollution and carbon emission

Asia-Pacific (APAC) is a region consistently increasing sustainable government bonds issuances, following the trend set by Europe in 2017 with France’s first sovereign green bond issuance. Although the market is still in its infancy, it is set to grow rapidly with recurring and first-time issuers that Crédit Agricole CIB is committed to supporting.

As an effective instrument to earmark capital to climate actions, sustainable debt offers governments the opportunity to rethink their spending by raising capital to implement plans in line with national climate goals of the Paris Agreement and to engage pre COP26 concrete actions. Benefiting from increasing global recognition and with maturities often longer than a single electoral cycle, sustainable bonds turn climate ambitions into long-term commitments.

Addressing the governments’ goal of transitioning to a low-carbon economy, Crédit Agricole CIB provides sustainable bond solutions to finance environmental projects in the areas of energy efficiency, clean transportation, green buildings, pollution prevention, waste management, resource recovery, water management and biodiversity conservation.

As a leading Green Structuring Advisor, Crédit Agricole CIB has already contributed to the implementation of the Green Bond Framework of three government issuers in Asia-Pacific – Hong Kong SAR, Republic of Korea and Republic of Indonesia:

  • Since 2019, the Hong Kong SAR Government has issued USD7.25 billion of green bonds through three issuances, including the first 30-year green bond issued by an Asian government, positioning itself as a key international financial centre for green finance.
  • Republic of Korea is also becoming one of the most active governments in the APAC region in sustainable debt, with two green bonds already issued in 2019 and 2021.
  • Meanwhile, Republic of Indonesia’s inaugural Sustainable Development Goals (SDG) bond is the first-ever Asian sovereign issuance of its kind, aligning the full sustainable financing framework to the SDGs.

 

By providing its green expertise, sharing and implementing best market practices, and delivering on excellence, Crédit Agricole CIB has enabled issuers such as governments to diversify their investor base. The Bank has also been fostering development of green finance markets in locations across APAC, while mobilising private capital towards sustainable development.

Setting new milestones in the debt space, these transactions that we have contributed to are key benchmarks for potential future sovereign issuers of green and sustainable bonds in the APAC region.