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Opinion

No place for greenwashing in Asia's loan markets

Borrowers should think broadly about how financing can support sustainability

| South Asia
The India Gate shrouded in smog in New Delhi: India faces capital requirements equivalent to 10.8% of gross domestic product to achieve net-zero emissions.   © Reuters

Rosamund Barker is a senior consultant to the Asia Pacific Loan Market Association. Andrew Ferguson is chief executive officer of the Asia Pacific Loan Market Association.

Sustainable finance is essential to Asia's transition toward net-zero emissions, which makes it concerning that market standards are being questioned amid the rising tide of concern over greenwashing -- the use of marketing or public relations, rather than substantive initiatives, to present an environmentally friendly image. As banks in the region continue to develop sustainable finance products, all parties must take care not to overpromise and underdeliver.

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