Business leaders in the Asia-Pacific called on developing nations in the area to issue climate bonds that are indexed to a basket of currencies. This would lessen the risk associated with fluctuations in foreign exchange rates while raising capital for the transition to clean energy.

ABAC, which is APEC's Business Advisory Council, also suggested on Sunday starting a pilot program to create an Asia-Pacific voluntary carbon market (VCM).

According to Nakaso, the scheme will allow like-minded nations to experiment with cross-border carbon credit exchanges in order to pinpoint issues and potential fixes. The absence of legislative frameworks and cross-border standards in the Asia-Pacific area hinders the development of a voluntary carbon market, which directs private funding into climate initiatives. The recommendations, which were generated during a conference held in Tokyo from August 4–5, highlight the rising realization throughout Asia that the public and private sectors must work together to share the enormous expense of the energy transition.

At the November summit of APEC leaders in Lima, the Asia-Pacific Economic Cooperation (APEC) advisory council, ABAC, will make its recommendations. This year, the APEC bloc—which represents over half of global trade—is chaired by Peru. ABAC requested that governments in the area issue 10-year bonds with interest and principal payments that are tied to a basket of currencies on the list of ideas.

According to Australian task force project leader Tom Harley, such APEC climate bonds would reduce lender risk from exchange rate fluctuations and provide poor countries with hard currency to purchase solar installations and storage facilities. Asia is one of the areas of the globe most susceptible to natural disasters caused by climate change. The challenges of the energy transition are exacerbated by the fact that many of its economies are dependent on fossil fuels or are susceptible to fluctuations in the currency market.