Finance for the Climate Transition: Harmonising ASEAN Green Banking Frameworks

ASEAN’s green banking practices remain fragmented, with banks and supervisors operating under different national approaches and voluntary international standards. This fragmentation can raise the cost of cross-border green and transition finance and limit the mobilisation of capital for the region’s low-carbon transition. Building on the ASEAN Taxonomy for Sustainable Finance, this Policy Brief proposes a regional green banking interoperability framework based on eight principles covering governance, target-setting, risk management, market development, emissions accounting, stakeholder engagement, assurance, and capacity building. A common framework would provide banks and supervisors with a shared foundation for more consistent implementation while preserving flexibility for national circumstances.