Asia-Pacific business executives, part of APEC’s Business Advisory Council (ABAC), have proposed the issuance of climate bonds indexed to a basket of currencies. This would reduce the risk from foreign exchange fluctuation in raising funds for clean energy transition. They also proposed a pilot program to develop a voluntary carbon market (VCM) for the Asia-Pacific region. The aim is to establish a mutually tradeable, voluntary carbon credit network within the region to accelerate the transition to a low-carbon society. These proposals will be presented at the APEC leaders’ summit in Lima in November.

Source: Reuters