4 July 2024 05:36 am Views - 1190
Says sustainable bond market can play an important role in attracting private capital for investing in climate mitigation and adaptation
By Nuzla Rizkiya
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Takafumi Kadono |
Sri Lanka must intensify efforts to sustain its growth while addressing the climate change challenges, the Asian Development Bank (ADB) stressed yesterday, highlighting the need for the island nation to turn to green bonds to meet its needs.
With the public sector funding insufficient for this endeavour, there is a pressing need to mobilise private financing in the capital market.
“For this, the sustainable bond market can play an important role in attracting private capital for investing in climate mitigation and adaptation, both of which are critically needed in Sri Lanka. This is a tremendous opportunity for the country that we must capitalise on,” said ADB Country Director Takafumi Kadono.
Promoting sustainable capital market development is an integral component of the ADB’s work in Sri Lanka to promote sustainable recovery, build resilience and foster inclusive growth.
While commending the Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) for their initiatives to promote green and sustainable market yields, Kadono stressed that much work remains to be done.
Addressing the ‘Towards a Greener Economy’ forum in Colombo yesterday, Kadono announced that the ADB would mobilise its expertise to support pilot issuances of sustainable bonds in Sri Lanka, in collaboration with the SEC and CSE.
He reiterated that green bonds would help bring the fight against climate change to the forefront of sustainable development.
“We can use this to help the country extricate itself from its economic crisis, set it on a strong, robust development and growth trajectory and build the resilience the country and economy truly need,” said Kadono.
The ADB estimates that developing Asia will require approximately US $ 1.7 trillion annually between 2016 and 2030, to achieve its economic growth targets while tackling climate change challenges.