Southeast Asian countries consider ways to boost ‘green financing’ as region chokes on smog

LUANG PRABANG, Laos (AP) — Senior finance and central bank officials from Southeast Asia and major economies met Thursday in the scenic Laotian city of Luang Prabang to discuss ways to help the region build resilience against shocks like the COVID-19 pandemic and natural disasters brought on by climate change.

The need for faster progress was dramatically apparent as the city and surrounding region were engulfed in heavy smoke from fires — some set to clear forests for crops, some ignited by record high temperatures and tinder-dry conditions. The air quality index early Thursday was nearly 300, or “very unhealthy.”

Laos and other countries in Southeast Asia have committed to seeking more sustainable ways to feed their people and power their economies. The question is where the money will come from to do that.

Green finance is among several items on the agenda of the finance meetings of the Association of Southeast Asian Nations related to countering the mounting impacts of global warming. The officials also were set for talks on an ASEAN infrastructure fund and disaster risk financing and insurance, according to the agenda provided by hosts of this week’s meetings.

Also on the list, refining a “taxonomy” to help identify and agree on projects that support ASEAN’s sustainability agenda and align with its climate change commitments and other goals.

The 10 member nations of ASEAN — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam — range from tiny but wealthy Brunei and Singapore to big, fast growing economies like Vietnam and Indonesia. They have pledged to cut carbon emissions to help reduce the impact of climate change but are struggling to find ways to unlock financing