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Transition finance in South-east Asia expected to grow in 2026, say market watchers

Sustainable finance proceeds raised in the region still flat in 2025

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Janice Lim

Janice Lim

Published Wed, Feb 11, 2026 · 06:44 PM
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    • Proceeds from ESG bonds came in at US$20.3 billion in 2025, marginally higher than US$20.2 billion in 2024.
    • Proceeds from ESG bonds came in at US$20.3 billion in 2025, marginally higher than US$20.2 billion in 2024. PHOTO: BT FILE

    [SINGAPORE] Transition finance is expected to grow in South-east Asia in 2026, following the release of international frameworks on how financing tagged with a sustainability label can be used by carbon-intensive sectors to facilitate their decarbonisation.

    Late last year, the Loan Market Association published a guide on structuring transition loans aligned with net-zero pathways, while the International Capital Market Association released a similar tool for the issuance of transition bonds.

    These guidelines are a “meaningful step forward” for Asian issuers, said Max Thomas, head of sustainable capital markets for Asia-Pacific at HSBC.

    ESGSustainability-linked bondsgreen bondsSocial bondsGreen LoansAsean Businesssustainable finance

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