Transition finance is an emerging field critical to global efforts to mitigate climate change and accelerate the shift toward low-carbon development. By supporting countries in meeting their Paris Agreement commitments, transition finance significantly contributes to achieving net-zero carbon emissions by 2050. Financial institutions (FIs) are at the forefront, driving regional transitions through targeted financing initiatives that support sustainable growth.
ADFIAP organized a five-day Study Tour Program on Green Finance: Transition Pathways and Opportunities for Financial Institutions from February 24 to 28, 2025. The program aimed to deepen participants’ understanding of transition finance and equip them with the expertise needed to develop and implement responsive and impactful financing programs that align with their national climate change action plans and zero-energy development goals.
The study tour combined expert-led lectures with immersive study visits to sectoral projects spanning key areas such as renewable energy, energy efficiency, green buildings, and sustainable agriculture. The sites visited included the solar rooftop system of the Asian Development Bank; the green building of DS Finance Corporation; climate resilient rice and sustainable rice production of the International Rice Research Institute; organic farming practices and education at the Organic Agriculture Research and Development Center, UP Los Banos; and solar-powered housing project of Via Verde Homes. This practical and holistic approach provided participants with valuable insights into best practices, innovative financing mechanisms, and the latest advancements in sustainable finance.
The study tour program was attended by eighteen (18) participants from leading development financing institutions, namely, the Agricultural and Rural Development Bank of Cambodia (2), the National Bank for Agriculture and Rural Development of India (3), the Alliance Finance Corporation of Sri Lanka (12), and Landbank of the Philippines (1). The participants actively engaged in the program, fostering a dynamic exchange of knowledge and experiences. This collaboration strengthened regional ties and reinforced collective efforts toward advancing sustainable financing solutions.
Ms. Ty Sokun Theary of the Agricultural and Rural Development Bank, Cambodia (ARDB), emphasized the importance of collaboration among the government, financial sector, and industry stakeholders to advance transition finance initiatives.
National Bank of Agriculture and Rural Development (India) and Alliance Finance Co. (Sri Lanka) participants explored financing opportunities in solar rooftops, carbon credits, sustainable crop lending, and affordable green housing. They highlighted key challenges such as financing limitations due to project risk and the lack of accessible information on best practices in technology and financing solutions.
They also underscored the critical role of international financing institutions and multilateral development banks in providing funding and risk mitigation mechanisms to expand green finance initiatives.
Through programs like this, ADFIAP continues to empower financial institutions in the region, equipping them with the necessary tools and insights to lead the transition toward a more sustainable and resilient future.