The Bank for International Settlements (BIS) will launch an Asian green bond fund to channel global central bank reserves to climate-friendly projects in the Asia-Pacific region.

The BIS said the investment would target high-quality bonds issued by governments, supranational organizations and companies in accordance with strict international green standards. The new fund will be launched in the first half of next year and will work with the Asian Development Bank and other development financial institutions.

"this is a fund designed to provide investable projects for central banks," said Siddharth Tiwari, chief Asia-Pacific representative of the Bank for International Settlements.

Asian central banks accumulated record foreign exchange reserves in August

This is the latest example of how green finance is on the agenda of central banks around the world.

The Bank of Japan joined the fight against global warming in July, providing banks with a series of incentives to help companies move towards a green economy. Other countries, including the European Central Bank and the Bank of England, also take climate change into account in their policy choices.

The BIS's new fund will complement the bank's existing green bond funds launched over the past two years, namely the dollar and euro funds. There are no details on the size of the new fund.

"We want to start small so that the architecture is in place, and then gradually increase," Tiwari said. "the difference between this and other green bond funds is that central banks take a long-term view-they don't go in and out, so the funding of the project is predictable."