DBS and the Climate Bonds Initiative (CBI) have released a report detailing a framework for banks and businesses to finance climate resilience investments in the Asia-Pacific region. As climate change increasingly impacts the financial landscape, the report, titled “Adaptation and Resilience: Exploring Investable Opportunities in Asia-Pacific,” aims to bridge the gap between the need for and the availability of adaptation and resilience (A&R) financing.
The report highlights that annual costs associated with physical climate risks for companies in Asia are expected to reach US$336b by the 2030s. Despite this, less than 10% of global climate finance supports A&R, with a mere 11% of that coming from the private sector. Asia accounts for 69% of global adaptation financing needs and 75% of the financing gap by 2030.
The report introduces a structured approach to assessing climate resilience investments, focusing on four key sectors: commercial real estate in India, data centres in Singapore and Malaysia, power infrastructure in coastal China, and transport corridors in Taiwan. It emphasises the need for localised resilience measures whilst promoting standardisation to support investment decisions.
Kelvin Wong, Chief Sustainability Officer at DBS, stated, “We believe the transition to a low-carbon economy must go hand-in-hand with adaptation.” Sean Kidney, CEO of CBI, added, “Adaptation and resilience is moving from the margins into the core of banking strategy and risk management.”
The publication marks a significant step in the partnership between DBS and CBI, with future plans to embed adaptation and resilience considerations across DBS’s business operations.
