The finance chiefs of the 21-member Asia-Pacific Economic Cooperation (APEC) have established a public-private Sustainable Finance Initiative (SFI) to foster inclusivity and resiliency in the region.
In a statement, APEC said the SPI is "a flexible, voluntary and non-binding collaboration tool between the public and private sectors and international organizations to promote the development of voluntary information sharing tools and capacity building resources on sustainable finance issues."
"The SFI was designed to empower financial institutions, regulators and investors to develop expertise in sustainable finance, ultimately contributing to the promotion of green and inclusive economic growth while addressing pressing global challenges such as climate change and social inequality," APEC noted.
APEC pointed out that Asia-Pacific is home to up to two-fifths of natural disasters worldwide. These calamities cost the regional economy $65 billion in losses last year, on top of over 64 million people affected throughout the region in 2022.
Through the SFI, "finance ministers are confident that resiliency can be bolstered through the development of innovative disaster risk financing and insurance mechanisms, and other risk transfer instruments available through capital markets," APEC said.
Specifically, APEC's finance ministers wanted to implement domestic carbon pricing and non-pricing measures, sustainable energy transitions, sustainable infrastructure financing, as well as resilient finance to enhance policies addressing hydrometeorological risks.
Besides access to sustainable finance, the APEC Finance Ministers' Process (FMP) also pushed for region-wide digital transformation during their meeting last Oct. 22 in Lima, Peru.
This digital finance push is aimed at digital financial inclusion and open finance across APEC's member-economies.
During the finance ministers' meeting, APEC said "other measures in the spotlight included strategies to combat rising protectionism and promote trade facilitation."
"The need for continued vigilance in monetary policies was highlighted, especially in light of recent interest rate adjustments and their potential impact on currency valuations and inflation," APEC added.
"To ensure the long-term prosperity of the Asia-Pacific, we must focus on sustainable practices, digital transformation and building resilience across our economies. This year, our work within the FMP will guide us toward a region that is stronger, more connected and better prepared to face future challenges," APEC quoted Erick Lahura, cabinet chief at the Peruvian Ministry of Economy, as saying.
For the Philippines, Department of Finance (DOF) Undersecretary Joven Z. Balbosa represented Finance Secretary Ralph G. Recto in the APEC Finance Ministers' Meeting. Recto is currently in Washington, D.C., attending the International Monetary Fund and the World Bank Group's (IMF-WBG) 2024 Annual Meetings.