Power Finance Corporation (PFC) is pleased to share the latest report from the Asia Transition Finance (ATF) Study Group, of which PFC has been a core member since July 2023. The ATF Study Group, a private-sector-led initiative comprising financial institutions operating in Asia, aims to support Asian economies in achieving a fair and systematic transition toward sustainability.
Established in 2021, the ATF Study Group recognizes the critical role of transition finance (TF) in helping Asian economies reach net-zero emissions while addressing associated challenges. Its mission is to develop actionable recommendations that complement existing global standards and taxonomies, enabling financial institutions to evaluate and implement TF projects effectively. The group also aims to identify challenges and explore potential enablers for TF.
In 2022, the group released the ATF Guidelines to provide practical tools for assessing transition projects and the ATF SG Activity Report, which outlined the barriers to TF adoption and proposed measures to overcome them. These findings were presented during the Asian Green Growth Partnership Ministerial Meetings (AGGPM) in September 2022.
This year, after extensive discussions among core members—primarily commercial banks—the ATF Study Group published the ATF Annual Report 2023. Contributions came from development banks, export credit agencies, public institutions, financial associations, and second-party opinion providers, with energy and industry experts offering guest insights.
The ATF Annual Report 2023 reviews progress on the seven support measures identified in the 2022 report and highlights additional enablers needed to accelerate TF adoption, drawing on survey results from Study Group members. The report emphasizes the importance of collaboration among all stakeholders—public authorities, TF recipients, and financial institutions—and outlines this as a key focus area moving forward.
Looking ahead, the Study Group will continue to facilitate peer learning and share practical insights from financial institutions’ experiences with TF. It will also promote a deeper understanding of various TF guidelines, national policies, and the development of TF frameworks through collaborative sessions and shared expertise.
