Asia GX Consortium officially launched

The Asia GX (Green Transformation) Consortium, composed of regulators, private financial institutions, and public and multilateral institutions who share the intention to promote and orient finance towards a just and orderly transition in Asia, announced its official launch at a high- level meeting held in Tokyo yesterday. The consortium is pleased to make this initial announcement to a global audience during “Japan Weeks,” where various meetings are held with the participation of investors and stakeholders from across the world.

The consortium will bring together regulatory visions and market practices, with the regulators in the consortium inviting private financial institutions as well as public and multilateral institutions to provide market input and support for the consortium’s initiatives. The Financial Services Agency of Japan will serve as the initial Secretariat of the consortium.

The scaling up of transition finance in Asia is crucial to achieving global climate goals and also provides huge investment opportunities in the region. This consortium, with members from different backgrounds, aims to develop a practical and common approach to transition finance by facilitating discussions while considering Asian context including through case studies and other methods; to use the outputs of the approach to facilitate transition finance flows, particularly to emerging and developing markets in the ASEAN region; and to explore ways to promote the flows of transition finance in Japan and the ASEAN region.

The consortium will comprise two groupings, one from the public sector and one from the private sector. The members are: the Financial Services Agency of Japan, the ASEAN Capital Markets Forum (ACMF) and ASEAN Working Committee on Capital Market Development (WC-CMD), the Asia Development Bank (ADB), the Glasgow Financial Alliance for Net Zero (GFANZ), Mizuho Financial Group (MHFG), Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), the Development Bank of Japan Inc. (DBJ), the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA).

Technical meetings in the run-up to the high-level meeting highlighted the importance of mobilizing funds for Asia’s climate transition, the role of blended finance, their implementation in the regional context of Asia and facilitating discussion among diverse stakeholders. Details of these preliminary discussions are laid out in the Working Paper Regarding Practical Approach to Transition Finance in Asia, prepared by the Secretariat through consultation with the consortium members.

As one of the Japan Weeks events, this high-level meeting of the Asia GX Consortium was held back-to-back with the Asia High-Level Financial Regulators’ Forum where regulators in the region engaged in in-depth discussions on decarbonization in Asia.

Building on this official launch, this consortium will play a key role in transition finance efforts in this region, through continuing discussion among the members, formulating further outputs, and outreaching to a wide range of stakeholders with the voice of this region.

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