Pointing to the risks to energy security highlighted by Russia's invasion of Ukraine, the group added that the reliability of energy supplies and their affordability should be taken into account.
Lenders would refer to a list of transition technologies selected by Economic Research Institute for ASEAN and East Asia when considering whether to provide financing, which includes the conversion of coal-fired power generation to gas-fired, and the use of hydrogen and ammonia at thermal power plants to cut carbon dioxide emissions.
The technologies were chosen based on factors such as emission levels, supply availability and cost, with the list subject to revision and expansion. Japan, which last year pledged to offer $10 billion for decarbonisation projects in Asia such as renewable energy, is promoting transition finance to back "realistic and feasible" steps toward carbon neutrality in the region as global efforts also pick up, particularly in the European Union., to classify which parts of the economy may be marketed as sustainable investments.