Former British Central Bank Governor Kearney (sixth from the left) advocated the establishment of GFANZ (November 2009, Glasgow, UK) = Reuters
The name of the new organization is "GFANZ Asia Pacific (APAC) Network". Yuki Yasui, Asia-Pacific Coordination Manager for the United Nations Environment Program Finance Initiative, will be responsible for the network. A secretariat will be set up in Singapore, and Singapore's government-affiliated fund Temasek, the Singapore Financial and Monetary Authority (MAS), which is the central bank, and the Singapore Exchange will support the activities.
GFANZ was established in April 2021 at the suggestion of Mark Carney, the former governor of the Bank of England (Central Bank). More than 450 financial institutions and organizations such as banks and asset management companies will participate and aim for zero greenhouse gas emissions by 1950. At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in November 2009, it announced that all member organizations could contribute 100 trillion dollars (about 1K 3000 trillion yen), showing its presence. By forming a huge coalition, it is trying to strengthen its influence on governments and international organizations.
The Asia-Pacific region is highly dependent on fossil fuels such as coal, and greenhouse gas emissions exceed 50% of the world total. GFANZ estimates that a real zero in the region will require an investment of $ 13.6 trillion by 2030. However, the current GFANZ member financial institutions are mainly in Europe and the United States, and lack spread in Asia except Japan and South Korea. For example, the majority of participating banks in the banking sector are Europe, and Asia Pacific is just under 20%. In particular, no bank has participated from China, which has the largest emissions.
GFANZ Co-Chair Kearney told the Nihon Keizai Shimbun that "countries need to develop strategies to break away from coal in order to improve national health, industrial competitiveness and climate change mitigation." The newly established GFANZ Asia-Pacific will play a central role in supporting decarbonization efforts tailored to the circumstances of each region. He also expressed his intention to strengthen relations with Chinese financial institutions and encourage them to join GFANZ.
Deepen cooperation with international financial institutions in Asia. Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), which was established under the leadership of China, advises on overall activities as a member of the GFANZ Asia-Pacific Advisory Board. Secretary-General Woo Chung Um from the Asian Development Bank (ADB), led by Japan and the United States, will also participate in the advisory committee. "Climate private money for emerging Asian economies will need to be combined with public funds," Co-Chair Kearney said.
