The Paris Agreement is a global call to mitigate climate change and the Article 2.1 ( c ) of this agreement is about asking countries to align their finances with low greenhouse gas emissions and climate-resilient development. This goal is important for countries in order to achieve their commitments to reduce carbon emissions and address the emergence of climate change. Thus, in our policy paper, we examine how five Asian countries—India, Indonesia, Vietnam, Singapore, and the Philippines—are carrying this mission.

These countries have made ambitious climate promises by setting timelines to achieve ‘net-zero’ emissions and setting targets for renewable energy by 2030. We conducted analysis on these countries’ attempts at reaching this goal, as we divide their actions into four categories: Financial Policies and Regulations, Fiscal Policy Levers, Public Finance, and Information Instruments.

As we explore each category, notable initiatives are carried out by these countries. From action plans to green bonds, they are taking steps in the right direction. However, there are remaining challenges that need to be addressed by these countries, particularly in sustainable financing. This policy paper unravels the efforts and challenges in this journey toward climate-aligned financial activities.