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The Bank for International Settlements (BIS) said on Thursday that a fund to channel global central bank reserves to green projects in the Asia Pacific region would be launched in early 2022.
The Asian Green Bond Fund, according to the BIS, will create a conduit for central banks to invest in bonds issued by sovereigns and corporations that meet stringent international green requirements.
“The fund will work closely with the Asian Development Bank (ADB) and other development financial institutions as well as other issuers,” the statement said.
The new fund will join two previous green bond funds formed by the BIS in the last two years, highlighting the growing importance that central banks are placing on supporting efforts to combat climate change.
For example, the Bank of Japan decided in July to begin purchasing green bonds from its foreign reserves, mostly as a symbolic gesture to raise awareness about the need to support green financing.
Story By: Norvisi Mawunyegah