Page 35 - Demo Faces

If developing countries in Southeast Asia are going to achieve their Sustainable Development Goal targets and meet the challenges of climate change, they need to scale up their green infrastructure investments. The problem
is how to overcome the private sector’s reluctance to get involved at an early stage when these projects are considered to be too high-risk?
The Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility is an innovative facility under the ASEAN Infrastructure Fund dedicated to helping governments create bankable green infrastructure projects. The facility operates
in three ways: project origination, project funding, and policy knowledge and support. It pools bilateral aid funding and ADB funding in $13.1 million worth of technical assistance and $1.45 billion in co nancing commitments.
Find out more: ASEAN Catalytic Green Finance Facility (ACGF) Watch this video: ASEAN Infrastructure Fund: Promoting Green
and Inclusive Infrastructure
“There are a lot of green bonds issued by the private sector and there is public sector money but not enough. We need to bring these two together, but how can we catalyze this? When a project starts the private sector doesn’t want to invest because the risk is too high, so we specialize in nancing projects during the construction period so that later, when the project has a source of income, the private sector can be attracted. We also try to get low interest rates and de-risk a project at the start, therefore attracting the private sector to invest in projects with new technology.”
Alfredo Perdiguero
Director, Regional Cooperation and Operations Coordination Division, Southeast Asia Regional Department
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