RAM Ratings supports the Asian Development Bank (ADB) and World Wildlife Fund (WWF) initiated ‘Hanoi Principles for Sustainable Infrastructure’, mooted at the International Forum on Sustainable Infrastructure held in Hanoi, Vietnam on 18 May 2017. According to ADB, developing Asia will need to invest US$26 trillion in this effort from 2016 to 2030, or US$1.7 trillion per year, if the region is to maintain its growth momentum, eradicate poverty and respond to climate change.
In response to this rapid buildup of infrastructure, ADB, WWF and international experts including RAM Ratings, representing the environmental and financial ecosystems, had conceptualised the ‘Hanoi Principles for Sustainable Infrastructure’ to develop key guiding principles within 2 years or less to drive sustainable infrastructure. “It is imperative for the financial sector to consider all material risks, including environmental, social and governance (ESG) factors in their lending or investment assessment criteria as part of a comprehensive due diligence process,” Promod Dass, Deputy CEO of RAM Ratings, said during a panel session on facilitating finance for sustainable infrastructure.
“Pension and institutional funds, banks, insurance companies and credit rating agencies are part of the solution,” points out Bruce Dunn, Principal Environment Specialist – Environment and Safeguards Division, Sustainable Development and Climate Change Department, ADB. This is important, given that in the period between 2016 and 2030, Asia will see investments (based on ADB’s projections) amounting to US$14.7 trillion in power, US$8.4 trillion in transportation, US$2.3 trillion in telecommunications and US$800 billion in water and sanitation – all sectors that typically seek long-term funding in both domestic and international bond markets.
For forum details, please click on: https://storify.com/ADBEnvironment/infra-forum-hanoi-2017
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