Aspect
Financing (Green & Sustainable)
Financing spans all three dimensions. Governance encompasses board approval of financing strategy, framework development, and oversight. Planning and Development covers capital raised for new port developments and sustainability linked investments. Operations includes use of operational performance data for KPI reporting and implementation of grant funded capacity building.
Summary
Financing is a foundational enabler of green port development, encompassing the mobilization of capital for sustainable port infrastructure, operations, and technology deployment. For ports across Asian Development Bank (ADB) Developing Member Countries (DMCs), access to green and blended finance is particularly significant given the scale of investment required to decarbonize port operations, build climate resilient infrastructure, and modernize equipment in line with global environmental standards.
Internationally, sustainable finance is shaped by frameworks including the International Capital Market Association (ICMA) Green Bond Principles (ICMA, 2025), the Sustainability-Linked Loan Principles issued jointly by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) (LMA, APLMA and LSTA, 2025), and the Climate Bonds Initiative Shipping Criteria (Climate Bonds Initiative, 2020).
The International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability provide an environmental and social risk management framework applied by many multilateral and commercial lenders (IFC, 2012). The IAPH 2024 Study on Investment Requirements of Developing Countries for Port Decarbonisation and Adaptation to Climate Change estimates that mitigation and adaptation investment in ports could run into the hundreds of billions to trillions of US dollars between now and 2050 (IAPH, 2024).
In the ASEAN region, the ASEAN Taxonomy for Sustainable Finance Version 4, released by the ASEAN Taxonomy Board on 6 November 2025, provides regional technical screening criteria for green, amber, and red classifications of economic activities, including activities relevant to port infrastructure (ASEAN Taxonomy Board, 2025).
Development finance institutions active in the region include the Asian Development Bank (ADB) through its ASEAN Catalytic Green Finance Facility (ACGF), the ADB Blue SEA Finance Hub, the Green Climate Fund, the International Finance Corporation, and the Asian Infrastructure Investment Bank (AIIB). The Climate Finance Access and Mobilization Strategy for the Member States of ASEAN 2024-2030 sets out a regional approach to unlocking climate finance (ASEAN, 2024).
Effective port financing encompasses several complementary practices:
- issuing green bonds or sustainability linked loans,
- structuring blended finance and development funding arrangements,
- applying taxonomy aligned investment screening,
- incorporating internal carbon pricing into capital decisions, and
- accessing public grants and technical assistance.
These practices collectively can mobilize the capital required for green port development, de risk investments for private financiers, and align capital allocation with climate and sustainability objectives. Strong access to green and blended finance provides the capital foundation for all other green port practices, including decarbonization, climate adaptation, and resilience investments.
This aspect contributes to United Nations Sustainable Development Goal (SDG) 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals) (United Nations, 2015).