What is your opinion/experience/insight on the above question?

I find the Asian Bond Markets Initiative regarding the need for green local currency bonds in ASEAN+3 quite convincing:

• (1) Financing infrastructure projects with long-term local currency bonds instead of short-term bank loans denominated in foreign currency would make the projects less vulnerable to currency and refinancing risks, especially as they generate revenue in the local currency. Also, costly hedging may not be available for longer-dated tenors in all currencies, an exchange rate depreciation can increase debt service requirements relative to local currency revenue, potentially threatening the viability of a project.
• (2) Second, ASEAN+3 has a significantly large demand for infrastructure but is exposed to a range of climate conditions and extreme events. Green local currency bonds would help meet the long-term financing of the ASEAN+3 region, and at the same time become an effective investment tool to finance its transition to a low-carbon region.

The full report is accessible here: https://www.adb.org/sites/default/files/publication/410326/green-lcy-bonds-infrastructure-development-asean3.pdf

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