Transition finance in Asia

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a comprehensive overview of transition finance frameworks and regional initiatives in Asia.

🏢実務担当者:Useful for corporate sustainability teams to understand financing options for decarbonization projects.

🏛政策担当者:Highlights the need for supportive policies and public-private collaboration to scale transition finance.

Addressing climate change and mitigating its impact are urgent concerns around the world. The financial sector should not only support green activities but also work toward transforming existing carbon emitters. While sustainable finance has focused on directing capital toward green businesses and away from brown businesses, there is an increasing recognition of the importance of providing financing to brown businesses to help them transition to low-carbon business models. This new approach, called “transition finance,” includes financial products and services offered to industries with high carbon emissions to support their decarbonization efforts. Transition finance is crucial in the global fight against climate change. The Glasgow Financial Alliance for Net Zero defines transition finance as all “investment, financing, insurance, and related products and services that are necessary to support an orderly real-economy transition to net zero”. Following this definition, this chapter emphasizes the importance of transition finance, the goal of which to facilitate the rapid decarbonization of hard-to-abate sectors and achieve a 1.5°C decarbonization pathway for the entire economy. It aims to provide an overview of transition finance as a new and effective method for accelerating the transition to a low-carbon economy, particularly in Asia. To this end, it discusses the limitations of traditional carbon pricing mechanisms in achieving the targets of the Paris Agreement and COP28 in 2023. Furthermore, the chapter provides an overview of governmental efforts in the Asian region to support transition finance and discusses the role of private sector investors in providing capital for high-emitting sectors and businesses. With the rapidly increasing demand for innovative sustainable finance solutions and the lack of research and education in the emerging field of transition finance, this article can serve as a guide for instructors teaching transition finance in a business or economics program.

• openalex https://doi.org/10.4324/9781003512172-13first seen 2026-08-09 05:08:48