admin MANILA, Philippines – Japan’s Government Pension Investment Fund (GPIF) and The Asian Development Bank (ADB) have formed a partnership to support green project financing through investments in ADB’s green bonds.
“We are pleased to collaborate with GPIF on this important initiative that promotes environment-related investments in Asia and the Pacific and is closely aligned with ADB’s development mandate,” ADB President Takehiko Nakao.
ADB says it issues green bonds to finance projects in the Asia and Pacific region that help its developing member countries mitigate greenhouse gas emissions and adapt to the consequences of climate change. ADB issued its first green bond in 2015. It has since issued more than $6 billion equivalent green bonds in various currencies, taken up by institutional investors, including pension funds and asset managers, assisting them to achieve their green mandate.
GPIF, is the largest pension fund in the world in terms of assets under management.
“GPIF requires all asset managers to integrate ESG into their investment analysis and decision-making. We regard the purchase of Green, Social, and Sustainability Bonds as one of the direct methods of ESG integration in the fixed income investment. GPIF is committed to promote ESG integration through our investment chain in order to ensure the sustainable performance of the pension reserve fund for all generations,” GPIF Executive Managing Director and Chief Investment Officer Hiro Mizuno said said Tuesday.
Global CO2 emissions have been increasing since 2018; and Asia produces about 40% of global emissions. “Driven by continuous economic growth, accelerating urbanization, and expanding middle classes, Asia accounts for the majority of rising energy needs worldwide. It is, therefore, essential that the region plays a proactive part in global efforts to reduce emissions from houses and offices, industry, and transport,” ADB Vice-President for Finance and Risk Management Ingrid van Wees said Tuesday.
Climate finance from ADB’s own resources is expected to reach $80 billion for 2019–2030.
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