Super cycling to a sustainable future

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Proactive change

The official sector is also proactive, an essential factor if the investment needed to reach net zero is to be achieved.

For example, the Bank for International Settlements (BIS) has launched green bond funds to help finance investments in green projects in the Asia-Pacific region.

The last Asian Green Bond Funds joins two other green bond funds issued by the BIS since 2019. Together, the funds will manage some $3.5 billion in green bonds for central banks and other official sector investors.

The BIS said the new fund offers opportunities for central banks in Asia and beyond to invest in high-quality bonds issued by sovereigns, international financial institutions and companies that adhere to strict international green standards. .

“These bonds help finance environmentally friendly projects in areas such as renewable energy generation and energy efficiency in the Asia-Pacific region,” the bank said.

There is undoubtedly a lot of uncertainty in financing a carbon-reduction super cycle – including rigorous and consistent reporting and investment standards. Likewise, such a cycle requires innovation. To some extent, those who adhere to a Panglossian worldview that “technology will save us” are right. But what technology?

The last Green Future Index 2022 MIT Technology Review Insights report provides insight into just one aspect of this challenge. He found that the Asian region is well placed to generate the technological innovation needed for a sustainable economy (although, unfortunately, Australia lags behind).

Europe remains in the lead overall, but in Asia, South Korea leads in patent creation relative to gross domestic product (GDP) and China and Japan lead in absolute number of patents. South Korea produced 700 patents per billion dollars of GDP, while Japan produced 340, China 267 and the United States 68.

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