Asian-Pacific Association of Banking Institutes (APABI)

MESSAGE FROM EDITOR-IN-CHIEF

Climate risk is already affecting the relationship between the financial sector and broader society.

This January, some of the worst wildfires in the history of California ravaged Los Angeles and surrounding areas. Now, the insurance sector (and the regulators in charge of it) will help decide where it is possible to rebuild, helping determine not only who pays for disasters, but also on a deeper level, what relationship humans should have with nature. These questions will only become more complex and contentious over time as the climate crisis deepens.

Climate finance is a multifaceted topic, with implications for everything from training and culture to marketing and economics. In addition to climate risk, we can also think about transition risks arising from stranded assets, like aging coal plants. Below you can find an issue brief from the International Agency on the changing energy mix, including several charts. Meanwhile, carbon pricing is a hot topic in Asia right now as the implementation of the EU’s carbon abatement border mechanism (CABM) comes closer to reality.

In response to these challenges, many organizations inside and outside APABI are developing their own climate transition plans. I have included one example by the Global Capacity Building Framework (GCBF), as well as my interview with its Managing Director Simon Thompson. In the future, I hope that APABI can continue to broaden its engagement with external partners on issues of global concern – not only to further develop the industry itself, but also its relationship with a broader range of stakeholders.

Regards,

David Stinson
Editor-in-Chief, APABI Focus Newsletter