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Asia-Pac nations, UN bodies urge lowering green finance costs for developing states

ASIA-PACIFIC nations at the United Nations (UN) climate talks in Bonn, Germany, agreed on the need to develop a clear regional action agenda, and will receive support from UN bodies, according to official statements.

The UN Economic and Social Commission for Asia and the Pacific (Escap) is proposing, in partnership with the UN Framework Convention on Climate Change and others, to support the formulation and implementation of such an agenda.

That came as UN under-secretary general and Escap executive secretary Shamshad Akhtar urged the creation of grant facilities to help finance green projects, especially in countries with underdeveloped capital markets and where costs of capital are high.

"Through a grant facility, the region could solve many of these shortcomings and support the emergence of a pipeline of new bond issues, while building up its local capital markets, thus capitalising on such a development to create a positive feedback loop for longer-term economic and social growth," she said.

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Asia-Pacific nations meeting at Bonn recognised that there was a need to enable the least-developed countries and small island developing states to lower the cost of capital, provide de-risking and scale solutions, and build awareness and capacity to overcome barriers.

By some estimates, developing countries in Asia could need about US$3.6 billion per year until 2030 to move towards net zero emissions of greenhouse gases and to increase resilience.