APEC Finance Ministers Forge Strategies Focused on Sustainable, Digital and Resilient Finance

As the global economic landscape continues to face economic, financial and environmental challenges, APEC Finance Ministers from across the region are working together under this year’s theme to promote a more sustainable, digital and resilient future. In 2024, the Finance Ministers Process (FMP) aims to address economic integration, digital transformation and the broader social dimensions of growth.

APEC Finance Ministers met on Monday in Lima, Peru, where they were joined by representatives from international organizations and the private sector to discuss policy responses and future prospects for the region. Setting the tone for the meeting, Erick Lahura, Chief of Staff of Peru’s Ministry of Economy, opened the session and highlighted the imperative for APEC economies to collaborate closely to achieve the vision of a more resilient and inclusive Asia-Pacific.

“To ensure the long-term prosperity of the Asia-Pacific, we must focus on sustainable practices, digital transformation and building resilience across our economies,” Lahura said. “This year, our work within the FMP will guide us towards a region that is stronger, more connected and better prepared to meet future challenges.”

A key theme was the importance of sustainable finance, with particular attention to the implementation of the four policy areas: national carbon pricing and non-pricing measures, sustainable energy transitions, sustainable infrastructure financing and sustainable finance initiative. Members underlined the importance of resilient finance, especially in improving policies related to hydrometeorological risk.

Along these lines, the Ministers of Finance announced the launch of the Sustainable Finance Initiative (SFI) as a flexible, voluntary and non-binding collaboration tool between the public and private sectors and international organizations to promote development of voluntary information sharing tools and training resources on sustainable finance issues. The SFI was designed to empower financial institutions, regulators and investors to develop expertise in sustainable finance, ultimately contributing to the promotion of green and inclusive economic growth, while addressing pressing global challenges such as climate change. climate and social inequality.

APEC pursues economic resilience, food security and sustainable energy

Furthermore, in a region where almost 40% of the world’s disasters occur, of which more than 140 will affect more than 64 million people in 2022 and the economic costs will reach $65 billion in 2023, APEC member economies committed to improving their resilience by creating deeper financial markets.

Finance Ministers are confident that resilience can be strengthened through the development of innovative catastrophe risk financing and insurance mechanisms and other risk transfer instruments available through capital markets.

Members also emphasized the importance of digital finance, highlighting progress made this year in two key policy areas: open finance and digital financial inclusion. Ambassador Carlos Vásquez, President of APEC 2024 SOM, noted the transformative impact of Peru’s FinTech sector in driving financial inclusion and the empowerment of small businesses. He noted that Peru is now home to more than 237 FinTech companies, with digital payment transactions increasing by 113 percent in the last year. “Our collective efforts to leverage technology for the benefit of all ensures that everyone benefits from the growth opportunities we are working toward,” said Vásquez.

Dr. Rebecca Sta Maria, Executive Director of the APEC Secretariat, underlined the need for a comprehensive APEC approach to ensure that the social dimensions of economic growth are addressed, especially in improving the quality of life through decent employment. , sustainable private investment and inclusive financial systems.

“Our work has a significant impact when we focus on improving the quality of life of our people,” explained Dr. Sta Maria. “Whether through regional economic integration or digital transformation, we must ultimately emphasize social inclusion and equity.”

The SFI was designed to empower financial institutions, regulators and investors to develop expertise in sustainable finance.

Other measures in focus were strategies to combat growing protectionism and promote trade facilitation. The need to maintain vigilance in monetary policies was highlighted, especially in light of recent interest rate adjustments and their possible impact on currency valuations and inflation.

Carlos Kuriyama, director of the APEC Policy Support Unit, reported steady GDP growth of 3.6% in the APEC region for the first half of 2024, a slight increase from the previous year.
“The economic recovery has been bolstered by improving consumption rates and easing inflation, although risks such as protectionism, supply chain uncertainties and geopolitical tensions remain critical concerns,” Kuriyama concluded.

Finally, the Minister of Economy and Finance of Peru, José Arista, concluded the meeting by highlighting that Peru proposed a very ambitious plan for this year, with the largest number of decisions, innovations and documents adopted in the entire history of the Finance Ministers Process. , and appreciates the work of all APEC economies, the APEC Secretariat, the APEC Business Advisory Council and international organizations for making it possible.