Unleashing sustainable finance in Southeast Asia

Climate change mitigation and adaptation efforts are urgently needed across Southeast Asia. The financial sector can play a critical role in supporting countries in their journey toward greater resilience and sustainability, but it must adapt to do so effectively. This report shows that while sustainable finance has experienced widespread expansion, sustainable financial markets remain small and unable to meet the funding needs of ASEAN-5 economies for their various sustainability objectives. Financial performance is a key driver of sustainable investments for financial institutions, often prioritized over sustainability considerations. This report highlights the importance of developing the financial architecture for sustainability in financial markets.

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