Fiscal Policy and Sustainable Finance: Enhancing the Role of the Financial Sector in Achieving the Sustainable Development Goals

Year Published

2024

Contributing Organizations

Asian Development Bank (ADB)

Association of Southeast Asian Nations (ASEAN)

Climate Bonds Initiative (CBI)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate Policy & Policy Engagement

Target Audience

Governments & Policymakers

Banks

MDBs/DFIs

Education Providers / Think Tanks / NGOs

Relevant Geography

Asia & the Pacific

Resource Description

This resource outlines how countries in Asia and the Pacific can use fiscal policies to mobilize private finance. It provides a framework for sustainable finance policy design, reviews ASEAN+3 implementation, and offers recommendations based on case studies and stakeholder input.

Why This Matters

Closing the $4 trillion annual climate finance gap by 2030 requires fiscal tools that reduce risk and align financial flows. Ministries of finance can lead by signaling commitment and enabling systemic change.

Key Insights

Recommends five tools: sustainable finance roadmaps, green subsidies, tax incentives, sovereign GSS+ bond issuance, green guarantees
Identifies major barriers: limited investment pipelines, regulatory uncertainty, low capacity, inconsistent policies
Notes 6 ASEAN countries have finance roadmaps and 5 have issued GSS+ bonds
Emphasizes need for policy cooperation, real economy integration, and capacity building

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