ASEAN SUSTAINABLE FINANCE STATE OF THE MARKET 2022

The ASEAN Sustainable Finance State of the Market 2022 report by the Climate Bonds Initiative analyzes the green, social, sustainability, and sustainability-linked debt markets in the ASEAN region. It details a market contraction in 2022 due to global economic headwinds, while highlighting the leadership of Singapore and the increasing role of sovereign issuers in the region.

• The ASEAN sustainable finance market contracted by 32% year-on-year in 2022, the first such contraction in its history, primarily due to rising inflation and interest rates. Despite this, total volumes remained robust at USD 36bn, which is nearly double the 2020 levels.
• Singapore is the dominant market in the region, accounting for 60% of issuance in 2022 and 63% of cumulative ASEAN issuance. It leads in the green, sustainability-linked loan (SLL), and sustainability-linked bond (SLB) segments.
• Sovereign issuances showed the most resilience in 2022. Singapore and the Philippines became new sovereign issuers of green and sustainability bonds, respectively. Sovereign debt is heavily concentrated in sustainability bonds, with Thailand, the Philippines, Malaysia, and Indonesia as key issuers.
• Green debt issuance in ASEAN totaled USD 12.8bn in 2022. There was a notable shift toward local currency denominations, with only 20% of 2022 green volume issued in foreign currencies, compared to 33% cumulatively.
• Energy and Buildings are the primary project categories for green finance, accounting for nearly 80% of overall allocations. Energy is the most financed category in Malaysia, Thailand, Vietnam, and the Philippines, while Buildings lead in Singapore.
• Sustainability-linked loans (SLLs) are the most popular debt instrument in the region. While SLL volumes dropped in 2022, they remained healthy and are significantly larger than the SLB market, which saw a volume plunge of almost 90% in 2022.
• The ASEAN Capital Markets Forum (ACMF) published the ASEAN Sustainability-Linked Bond Standards (SLBS) in November 2022 to improve transparency, consistency, and uniformity in the SLB market.
• Taxonomy development is active across the region to provide clarity on sustainable activities. The ASEAN Taxonomy Board released Version 1 in 2021, and national taxonomies have been launched or are in development in Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
• Transition planning remains largely voluntary and underdeveloped in ASEAN. Very few companies have established science-based, comprehensive transition plans, and the report recommends that governments introduce mandatory transition plan disclosures.
• The report identifies a trend toward larger, benchmark-sized deals (USD 500m+) in 2022, driven by sovereigns and large corporates, while the share of small deals (under USD 100m) decreased.

APA

Almeida, M., & Wong, C. X. (2023). ASEAN SUSTAINABLE FINANCE STATE OF THE MARKET 2022. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_asean_sotm_2022_02f.pdf

Chicago

Almeida, Miguel, and Chi Xiang Wong. ASEAN SUSTAINABLE FINANCE STATE OF THE MARKET 2022. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/cbi_asean_sotm_2022_02f.pdf.

Wikipedia

{{cite report |last1=Almeida |first1=Miguel |last2=Wong |first2=Chi Xiang |title=ASEAN SUSTAINABLE FINANCE STATE OF THE MARKET 2022 |publisher=Climate Bonds Initiative |date=May 2023 |url=https://www.climatebonds.net/files/documents/publications/cbi_asean_sotm_2022_02f.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{almeida2023asean, author = {Almeida, Miguel and Wong, Chi Xiang}, title = {{ASEAN SUSTAINABLE FINANCE STATE OF THE MARKET 2022}}, institution = {Climate Bonds Initiative}, year = {2023}, month = may, url = {https://www.climatebonds.net/files/documents/publications/cbi_asean_sotm_2022_02f.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }