The Emergence of Green Banking: A Sustainable Financing Strategy for Protecting Against Deforestation in ASEAN

Abstract

ASEAN countries face significant environmental challenges contributing to climate change, biodiversity loss, deforestation, and soil degradation. Green banking can help redirect investments toward environmentally friendly activities and discourage deforestation by incentivizing sustainable financing and penalizing unsustainable practices. The article examines the potential benefits of green banking in promoting sustainable financing and discusses the challenges and opportunities for its implementation in ASEAN countries. This article was prepared using a simplified PRISMA method using selected literature and legal materials. The findings suggest that green banking can be vital in promoting sustainable financing and addressing deforestation in ASEAN countries. However, it requires a collaborative effort from stakeholders, including financial institutions, policymakers, and civil society. Importantly, there is a need for legal norms in several ASEAN to be carefully reformulated to support green banking performance.