On April 27, 2025, Dr. Ma Jun, President of the Institute of Finance and Sustainability (IFS) and Chairman of the Capacity-building Alliance for Sustainable Investment (CASI), joined leaders, practitioners, and policymakers at the AIIB Members Day 2025 to discuss the evolving landscape of green finance and explore opportunities for regional and global cooperation.
Building a Coalition for Green Development
In his speech, Dr. Ma highlighted how recent global developments, such as shifting climate commitments and the US withdrawal from the Paris Agreement and NGFS, have prompted both the EU and Asia to take a more proactive role in advancing sustainability. He said that some progress has been made in forming climate-related "coalitions of the willing", and more of that nature should come.
An example of this type of coalition is the creation of the Common Ground Taxonomy (CGT), which bridges differences in sustainable finance taxonomies across jurisdictions. Recognizing the diversity in national definitions of “green,” this collaboration led by the EU and China established a shared framework to deliver interoperability of sustainable finance definitions and labelling practices. With Singapore’s inclusion last year, CGT has evolved into a Multi-jurisdiction Common Ground Taxonomy (MCGT). Dr. Ma noted that the recent MCGT garners interest from Brazil, South Africa, and Australia. This collaborative effort demonstrates how leadership, even in the absence of the US, can drive alignment and momentum in the global green finance landscape.
Capacity Building for Sustainable Growth
Dr. Ma emphasized that capacity building is a cornerstone of advancing green finance, especially for emerging markets and developing economies. Since its launch at COP29, the Capacity-building Alliance for Sustainable Investment (CASI) has already trained 5,000 professionals in sustainable finance across EMDEs. Looking ahead, CASI has set an ambitious goal of training 100,000 experts by 2030. This initiative will play a pivotal role in implementing green standards, supporting regulatory reforms, and accelerating project development at scale, ensuring the EMDE’s readiness for sustainable investment opportunities.
Harmonizing Standards across VCMs
Efforts to consolidate and harmonize voluntary carbon markets were another key topic of discussion. Dr. Ma noted that Asia’s voluntary carbon markets are currently fragmented, which limits market liquidity and investor interest. By enhancing the interoperability of standards and VVB practices and establishing data sharing mechanisms, the region’s VCMs can attract greater institutional and private investment. An integrated carbon market will be instrumental in unlocking the full potential of green finance and accelerating climate action.
The Role of Multilateral Development Banks (MDBs)
During the Q&A session, Dr. Ma addressed the critical role of Multilateral Development Banks (MDBs) in advancing sustainable finance. He explained that MDBs are uniquely positioned to act as catalysts for high-impact demonstration projects that instill confidence in private investors. He also underscored Beijing’s status as a hub for green technology innovation, highlighting opportunities for MDBs to support the deployment of cutting-edge technologies and enhance the bankability of green projects. This includes integrating multiple income streams for green projects and improving risk management in renewable energy and agroforestry initiatives.