Asia-Pacific executives propose new climate measures including climate bonds and VCM 

Asia-Pacific business executives called on emerging countries in the region to issue climate bonds indexed to a basket of currencies. This approach aims to mitigate the risk of foreign exchange fluctuation by raising funds for clean energy transition. 

The APEC Business Advisory Council (ABAC) also suggested initiating a pilot program to develop a voluntary carbon market (VCM) specifically for the Asia-Pacific region. 

Hiroshi Nakaso, head of ABAC's finance and investment task force, told a news conference, "What we're trying to establish is an interoperable, or mutually tradeable, voluntary carbon credit network within the Asia-Pacific region that can accelerate the region's transition to a low-carbon society."

He added that under this programme, like-minded countries will conduct cross-border carbon credit transactions on a trial basis to identify problems and its possible solutions. 

The Asia-Pacific region currently lacks cross-border standards and regulatory infrastructure for a voluntary carbon market, a mechanism designed to direct private financing into climate projects.  

Proposals discussed during a meeting in Tokyo from August 1-4 highlight an increasing recognition in Asia of the necessity for collaboration between the private and public sectors to finance the significant costs of energy transition, according to ABAC’s statement.  

Julia Torreblanca, ABAC Chair, added, "Tackling trade and investment barriers, promoting digitalization, and accelerating the climate response is urgent. We can't wait any longer."

The advisory council will present its recommendations at the APEC leaders' summit in Lima this November.  

Torreblanca also advocated for a new, Greener Trade Framework to support emissions reduction throughout supply chains and the transition to a low-carbon economy.