Green Light for Green Infrastructure
The world is looking to build a secure and resilient post-pandemic future. Keeping this mind, the Asian Development Bank is attracting finance to promote projects to push equitable and sustainable growth. Projects are looking to work on factors like climate resilience and gender equality.
The ADB offers the SDG Accelerator Bond (SAB) which will standardise the risk-return structure to help attract investors and also make sure that local governing bodies have access to finance. This is meant to be a ‘transitional tool’ that will help projects that eventually work towards the SDGs. However, because of issues like affordability and lack of empirical proof, sometimes investors need a good incentive. The SAB works to provide a return comparable to mainstream instruments so investors will be enter deals with good faith.
Tackling climate change is not merely about the environment but is also about ensuring that communities build resilience, a large part of this is focusing on infrastructure. Enhancing environmental stability is crucial but the pandemic has wreaked havoc on government budgets, particularly in Asia. Capital markets are a source of untapped potential that the ADB recognises can help bridge investment gaps.
Learn more at: https://www.theasset.com/article-esg/44120/adb-proposes-sdg-accelerator-bond-for-green-infrastructure
