Climate leadership's future trajectory points towards Asia: understanding why the region holds this position
In the heart of Asia, a significant shift is underway as various impact investing initiatives align economic growth with environmental conservation. These initiatives, aimed at addressing climate change and nature loss, are gaining traction and driving progress at scale.
One such example is the Asian Development Bank’s (ADB) Environment Action Plan 2024–2030, which focuses on scaling nature-positive investments. By concentrating on biodiversity management, pollution control, circular economy, and nature-based climate solutions, the plan aligns with global frameworks like the Paris Agreement.
The Asian Infrastructure Investment Bank (AIIB) also plays a crucial role with its Nature Finance Accelerator Program. This initiative promotes conservation and nature-based carbon credits, supported by partnerships with Tencent and the French development agency AFD. Leveraging digital tools and policy-based financing, the program aims to strengthen climate resilience and low-carbon development.
Malaysia's advancement of nature finance through Ecological Fiscal Transfers and the Tiger Landscape Investment Fund is another key initiative. These projects use blended finance models to de-risk nature-positive investments and pilot Taskforce on Nature-related Financial Disclosures (TNFD) actions.
Meanwhile, the Inclusive Climate Finance for Vulnerable Communities (ICCAP) project focuses on private sector green financial products aimed at rural smallholders and vulnerable groups. By integrating social justice with climate adaptation and mitigation, ICCAP addresses social and economic barriers, raising resilience while supporting livelihoods.
These initiatives aim to catalyse systemic change by aligning economic growth with environmental conservation, mobilizing private finance, integrating policy reforms, leveraging partnerships, and addressing social and economic barriers. By doing so, they advance the transformation of financial systems and markets towards sustainability.
The World Economic Forum is at the forefront of these efforts, convening, incubating, and scaling new and existing public, private, and philanthropic partnerships to tackle climate change and nature loss, with a focus on the Asia-Pacific region. Asia requires an estimated US$1.1 trillion annually by 2030 to meet its climate and nature goals, but currently less than a third of this is being mobilized.
Singapore and Hong Kong have important roles to play as Asia's premier financial hubs in accelerating impact investments for climate and nature in Asia. The era of Western dominance in climate and development funding is waning, with many of the region's investors and family offices bringing a worldview that is distinct from traditional Western models, rooted in legacy, family values, and community stewardship.
Governments, philanthropies, and local investors in Asia are already experimenting with bold public-private-philanthropic partnership models to finance climate and nature solutions. The World Economic Forum is involved in the development of these partnerships, working to unlock the capital needed to address climate change and nature loss in the Asia-Pacific region.
With less than 8% of global impact investment assets deployed in Asia, there is significant room for growth. The climate crisis is intensifying globally, and Asia is poised to take a leading role in the next phase of the global transition to a low-carbon, nature-positive economy. The World Economic Forum's focus remains on unlocking the capital needed to address climate change and nature loss in the Asia-Pacific region, driving progress towards a sustainable future.
- The Asian Development Bank's Environment Action Plan 2024–2030, focusing on nature-positive investments, aligns with global frameworks like the Paris Agreement, addressing climate change and biodiversity loss.
- The Asian Infrastructure Investment Bank's Nature Finance Accelerator Program promotes conservation and carbon credits through digital tools and policy-based financing, enhancing climate resilience and low-carbon development.
- Malaysia's Ecological Fiscal Transfers and Tiger Landscape Investment Fund are key initiatives, using blended finance models to de-risk nature-positive investments and enabling the pilot of Taskforce on Nature-related Financial Disclosures (TNFD) actions.
- The Inclusive Climate Finance for Vulnerable Communities (ICCAP) project in Asia focuses on green financial products, integrating social justice with climate adaptation and mitigation to raise resilience and support livelihoods.
- The World Economic Forum is working with governments, philanthropies, and local investors in Asia to unlock the capital needed to address climate change and nature loss, driving progress towards a sustainable future in the Asia-Pacific region.
