Green finance is a cornerstone of sustainable development, providing the financial resources needed to align the global financial system with green transformation. It covers investments that protect the climate, including mitigation and adaptation, and also other environmental goals, such as biodiversity protection, circular economy and pollution prevention.¹ One major milestone on the global agenda is the New Collective Quantified Goal on Climate Finance (NCQG) agreed by countries at the 2024 United Nations Climate Change Conference (COP29), which sets a financial target of at least $300 billion annually by 2035 to support developing countries. COP30, which will take place from 10 to 21 November 2025 in Brazil, aims to finalise the Baku-Belem Roadmap, a workplan and process to define how  a much larger total of USD 1.3 trillion annually by 2035 can be met to help developing countries cut emissions and build resilience.

Despite progress made since the 2015 Paris Agreement, the world remains off track to meet its targets. The 2023 Global Stocktake confirmed that global emissions are still rising. Green finance also continues to face gaps between pledges and delivery, with limited private-sector engagement and an over-reliance on loans instead of grants.

There are however positive signs and efforts to step up innovative solutions and channel resources where they are most needed. Notably, the EU is one of the world’s largest providers of green finance and supports initiatives like the ASEAN Catalytic Green Finance Facility.  The ACGF provides technical assistance to help governments identify and prepare commercially viable green infrastructure projects, and attract sustainable infrastructure investments. BIended finance platforms, such as Singapore’s FAST-P for Asia and the Just Energy Transition Partnerships (JETP) implemented in four Asian and African countries, show how development banks and private investors can come together and share risk to unlock billions for clean energy and industrial transformation.

AIB will be further exploring the issue of green finance in a forthcoming podcast, such as its accessibility and just transition. We welcome your questions to be discussed in the episode – send us your suggestions below and help shape the debate.

[1] Six Environmental Objectives from EU Taxonomy: (1) Climate change mitigation; (2) Climate change adaptation; (3) Sustainable use of water and marine resources; (4) Circular economy; (5) Pollution prevention; (6) Healthy ecosystem

Singapore-Asia Taxonomy on Sustainable Finance: (1) climate change mitigation, (2) climate change adaptation, (3) protection of ecosystems and biodiversity, (4) resource resilience and circular economy, (5) pollution prevention and control

Sources:

Ulrich Volz, 2016, ‘Fostering Green Finance in Asia German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)’ IDOS Research

European Commission, 2025, ‘EU taxonomy for sustainable activities’, European Commission

UNFCCC, ‘New Collective Quantified Goal On Climate Finance’ UNFCCC

UN Trade and Development (UNCTAD), 10 December 2024, ‘Countries agree $300 billion by 2035 for new climate finance goal – what next?’, UNCTAD

Jamal Srouji and Deirdre Cogan, 8 September 2023, ‘What Is the ‘Global Stocktake’ and How Can It Accelerate Climate Action?‘, World Research Institute (WRI)

UNFCCC, ‘Global Stocktake’, UNFCCC

Eco-Business, 14 May 2025, ‘On blended finance, bold leadership and Asia’s green future’ Eco-Business

Asian Development Bank (ADB), ‘ASEAN Catalytic Green Finance Facility (ACGF)’, ADB

The Monetary Authority of Singapore (MAS), 8 September 2025, ‘Green Investments Partnership, a Blended Finance Fund under Singapore’s FAST-P initiative, Achieves First Close with US$510 Million in Committed Capital’, MAS

Reccessary, 6 June 2024, ‘What are Just Energy Transition Partnerships, and what progress has been made in Indonesia?’ Reccessary