It’s a necessary mark to hit if the world is to reach its stated target of staying below its 2°C warming target (that is, 2°C above pre-industrial levels).
" The pace of change continues to far exceed expectations: a change seen strongly in the climate finance sector."
Emma Herd, CEO at Investor Group on Climate Change
Achieving this is a tall order but the pace of change continues to far exceed expectations - a change seen strongly in the climate finance sector.
A new report released to mark the launch of the new Asia Investor Group on Climate Change(AIGCC) aims to help make sense of the shifting landscape across 12 Asian markets.
By reviewing regulations, industry initiatives and surveying 36 banks, 30 investors and 24 insurers, Investing for the climate in Asia is the most comprehensive analysis to date of climate finance sector activity in Asia.
When you consider only three years ago climate risk and opportunity barely existed in the language of many institutions and regulators across Asia the progress, though far from universal, is remarkable.
The report reveals 31 per cent of the institutions reviewed now factor climate change risks into their financing decisions, with 61 per cent of banks referring to green products and 56 per cent providing some quantification of their exposure.
Meanwhile, over a quarter of banks refer to climate change factors as a reason to limit financing and 81 per cent disclose their policy on responsible lending.
Getting to grips with the opportunities and grappling with the risks as the world’s energy system transforms can be a dizzying prospect, not just for investors, but also for regulators.
Today, five of the countries surveyed have banking initiatives, four have sustainability codes and five include sustainability disclosure within the listing rules of their stock exchange.
To take just one example, in 2015, green bond standards were launched from the People's Bank of China (PBOC) and the National Reform Development Committee.
This was followed by PBOCs green bond market opening in January this year, with China’s overall green bond market predicted to reach $US230 billion by around 2020.