Rising positions in global sustainability leadership among Asian universities
Asian universities are playing a critical role in bridging the Sustainable Development Goals (SDGs) financing gap by advancing research, innovation, and leadership in sustainable finance. With severe funding shortfalls particularly in emerging Asian economies, universities have expanded their role from knowledge producers to key players shaping policy, investment strategies, and sustainable development initiatives across the region.
Leadership and Innovation in Sustainable Finance
Asian universities are increasingly recognized globally for their sustainability leadership, driving research and innovations aimed at addressing the SDG financing gap—especially in areas such as climate action, education, and infrastructure. The Times Higher Education Impact Rankings 2025 note a significant rise in Asian universities among global sustainability leaders, reflecting their growing influence.
Addressing Regional Financing Shortfalls
For example, Indonesian government projections foresee a $1.7 trillion funding shortfall by 2030 for SDG commitments, with similar challenges across Southeast Asia. Universities help by developing new sustainable finance models and bridging the gap between research insights and practical financing solutions tailored to local contexts.
Partnerships and Collaborative Initiatives
Institutions like Lingnan University are collaborating with UN bodies to establish hubs focused on humanitarian innovation and SDG promotion, fostering knowledge exchange and capacity building in Asia.
Facilitating Science, Technology, and Development Projects
Through partnerships with organizations like the Asian Development Bank, universities in Sri Lanka and elsewhere receive substantial funding to advance science and technology projects aligned with SDGs, thus leveraging academic expertise to attract and manage new funding streams.
Mobilizing Sustainable Finance, Innovating Financing Mechanisms, Fostering Partnerships, and Providing Thought Leadership
In summary, Asian universities act as pivotal actors in mobilizing sustainable finance, innovating financing mechanisms, fostering partnerships, and providing thought leadership to help close the SDG financing gap in the region and support national and regional development goals aligned with the 2030 Agenda.
Beyond Campus Boundaries
Many universities are expanding need-based scholarships, integrating community engagement into curricula, and promoting open-access research to extend knowledge beyond campus boundaries.
Recognition and Inclusion
Bayu Arie Fianto, an Associate Professor at Universitas Airlangga and President of the Indonesia SDGs Center Network (ISCN), has advised UNICEF, USAID, and Bank Indonesia on sustainable finance. The inclusion of universities in global development financing discussions, such as the Fourth International Conference on Financing for Development (FFD4), underscores their role as active contributors to financial innovation.
Growing Presence in Sustainability Leadership
The Times Higher Education Impact Rankings 2025 highlight a growing presence of Asian institutions in sustainability leadership, with 22 of the top 50 universities now coming from the region.
Engaging in Green Bonds, Sustainability-Linked Loans, and Blended Finance Models
Universities in Asia are being recognised for their role in sustainable finance, bridging research with policy and investment strategies. They are engaging in green bonds, sustainability-linked loans, and blended finance models.
Collaboration with Development Banks, Regulators, and Ministries
Asian universities are collaborating with development banks, regulators, and ministries to build capacity and provide evidence-based recommendations for sustainable finance.
The Financing Gap in Emerging Economies
The financing gap for achieving SDG targets is particularly severe in emerging economies. For example, Indonesia faces a funding shortfall of 1.7 trillion US dollars by 2030 to meet its SDG commitments.
Contributions to Policy Frameworks
Research centres at Asian universities have contributed to policy frameworks on carbon pricing, renewable energy investment, climate finance governance, and Islamic social finance.
First Formal Participation in Global Development Financing Discussions
The United Nations has included an Academic Day in the Fourth International Conference on Financing for Development (FFD4), scheduled for July 2, 2025, marking the first formal participation of universities in global development financing discussions.
Structural Barriers in Education Access
Structural barriers in education access in emerging economies include declining international aid, rising tuition costs, and limited digital infrastructure.
Track Record of SDG Achievements
Only 15% of Sustainable Development Goals (SDG) targets are on track, according to the UN Sustainable Development Report 2024.
[1] Source: Times Higher Education, Asian Development Bank, United Nations Development Programme [2] Source: Lingnan University, United Nations Human Settlements Programme [3] Source: UNESCO Institute for Statistics [4] Source: UNESCO Institute for Information Technologies in Education [5] Source: Asian Development Bank, World Bank Group
- Asian universities are contributing to the energy transition by driving research and innovation in renewable energy, addressing the funding gaps for the Sustainable Development Goals (SDGs).
- Universities in Indonesia and Southeast Asia are developing sustainable finance models to tackle regional financing shortfalls, especially for SDG commitments, by bridging the gap between research insights and practical financing solutions.
- Collaborative initiatives between Asian universities and UN bodies, like Lingnan University and the UN Human Settlements Programme, aim to foster knowledge exchange, capacity building, and promote sustainable development.
- Asian universities are leveraging academic expertise, in collaboration with organizations like the Asian Development Bank, to attract and manage new funding streams for science and technology projects aligned with SDGs.
- Engaging in green bonds, sustainability-linked loans, and blended finance models, universities in Asia are playing a significant role in mobilizing sustainable finance, fostering partnerships, and providing thought leadership in regional development.