The humanitarian crisis and economic volatility stemming from the COVID-19 pandemic have thrown into sharp relief the growing challenges of biodiversity loss, climate change and social inequality.

There has not been a more opportune time for sustainable financing to play a vital role as countries around the world begin the process of revitalising their economies after the fallout from COVID-19, says Tan Ai Chin, managing director and senior banker (client coverage) and head of investment banking at OCBC Bank (M) Bhd. “As the impact of the crisis continues to evolve, it is definitely not an overstatement to say that the pandemic has not only been a test for sustainable financing in particular but the finance industry in general as well.

Fiscal and monetary measures implemented by most governments will invariably minimise the immediate economic crisis. But the long-term implications may be more far-reaching, says Tan.

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The Edge Markets