Low carbon push adds $8.4b addt'l revenue for APAC banks

Between 2031 to 2050, APAC banks will likely 

Banks in Asia Pacific are expected to secure an additional $8.4b in incremental revenues related to the low-carbon transition through 2030, according to a new report by Bain & Company.

Banks and financial institutions globally are looking at a potential $44b revenue opportunity through 2030– about $600b annually– from financing and investing in low-carbon transition, the report stated.

APAC’s financial institutions are expected to trail their American counterparts during this period, however. North American banks could capture up to $19.3b in annual incremental revenues from financing the transition through 2030, with a further $3.7b for South American banks. 

However, in the period through 2050, APAC banks are expected to take the lead.

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From 2031 to 2050, the incremental investment needed will rise to $2.3t per year. 

"The low-carbon transition represents a substantial investment opportunity for banks, with significant revenue pools opening up this decade," said Christian Graf, leader of Bain & Company's Sustainability & Responsibility Financial Services practice in EMEA. "Yet a wide financing gap remains at current investment levels.

“The entire global economy will need to increase investment in clean energy and low-emissions technologies to meet the agreed upon reduction pathways. Our analysis shows that the banks which see this gap as an opportunity stand to reap significant rewards,” Graf said.