The article highlights Pacific Islanders’ urgent fight to limit global warming to 1.5°C, as climate change severely impacts their livelihoods, cultures, and ecosystems. Rising sea levels, ocean acidification, and extreme weather have already caused irreversible losses, with “Loss and Damage” costs soaring. Despite the creation of the Fund for Responding to Loss and Damage at COP28, progress is threatened by waning political will and shifting funds away from climate action. Pacific leaders demand both immediate financial support and an end to fossil fuels, insisting that holding the 1.5°C line is essential for their survival and cultural preservation.

A major Japanese bank worked with S&P Global to measure the climate impact of the vehicles it helps finance. Since car makers use different methods to report emissions, the bank needed accurate, consistent data. S&P helped calculate emissions for each vehicle—from fuel production to driving—then projected future emissions based on production trends. This allowed the bank to set clear net-zero goals for 2030 and 2050 and create a plan to work with car companies to reduce emissions. The project shows how banks can use detailed data to support climate-friendly investments.

India has begun integrating sovereign green bonds into its climate finance strategy to support its ambitious decarbonization goals. To help bridge its substantial $170 billion annual climate finance gap, India issued its first green bond in 2023 worth ₹80 billion (≈$980 million), with proceeds directed toward clean energy, sustainable infrastructure, and climate adaptation projects. These bonds exclude fossil fuel-related projects and highlight India’s commitment to green growth, backed by technical support from the World Bank.

A study by S&P Global Sustainable1 shows that financial institutions in the Asia-Pacific region face rising risks from climate change and biodiversity loss, given the region’s high exposure to extreme weather. Despite their key role in funding climate action, only 13% have net-zero targets for financed emissions, 19% have adaptation plans, and 35% conduct climate risk scenario analyses. Biodiversity commitments are limited, though higher in countries like India. The report calls for more data-driven, localized strategies to help institutions manage environmental risks and support a low-carbon transition.

Wärtsilä, a global tech group, has introduced a modular Carbon Capture Solution (CCS) for cargo ships that can cut CO₂ emissions by up to 70%. Designed for both new builds and retrofits, the system uses a five-stage process that cleans exhaust gases, absorbs CO₂ with proprietary amine solvents, and then stores the liquefied CO₂ onboard for later disposal. The system has successfully processed 50 tonnes of CO₂ per day from engines running on heavy fuel oil. With the shipping industry facing strict emissions regulations by 2050, this scalable solution could help prevent up to 700 million tonnes of CO₂ emissions annually, offering a viable path toward net-zero maritime operations.

Integrated, full-spectrum climate finance strategies that align fiscal and monetary policy tools within nationally led frameworks is the key to sustainable climate financing. The authors argue that such cohesive financing—spanning public budgets, private investment, and monetary instruments—is essential to drive sustainable, long-term climate action. Success requires tailoring these financial packages to local economic contexts, ensuring coordination among stakeholders, and embedding them within coherent national systems to strengthen economic resilience and advance climate goals.