This report by the Asia-Pacific Structured Finance Association, the Asian Academy of International Law and the Hong Kong Institute of Bankers provides in depth insights into initiatives that would scale up securitisation markets.
This would help unlock funding for infrastructure, where, according to the Asia Development Bank, Asia’s investment need is USD1.8 trillion per year to 2030, yet current spend is only USD881bn. This report focuses on the financing tools available for securitisation and provides examples of how they have been used elsewhere in relation to infrastructure and SME’s. It also acknowledges the need to incorporate climate, other environmental and sustainable development factors into account.
Scaling up infrastructure needs in a sustainable way is a critical means to deliver the emission reduction goals of the Paris climate agreement. Implementing low-carbon power and transport systems and energy efficient public use buildings such as schools and hospitals provide economic development at the same time as avoiding high carbon lock-in.