Green lending in Asia is a key tool for financing the green transition, targeting renewable energy, sustainable transport, climate-resilient agriculture, and energy efficiency. A comparative analysis of Asian economies—China, India, Indonesia, Vietnam, Thailand, the Philippines, Malaysia, and Bangladesh—reveals three main governance models: central bank-led, regulator-led, and development finance institution-led. Countries with mandatory or interventionist frameworks, like China and Bangladesh, tend to have larger or faster-growing green lending markets compared to those with voluntary approaches, such as India and the Philippines. Challenges include inconsistent definitions, verification difficulties, greenwashing risks, capacity limitations in smaller lenders, and data gaps. The study highlights institutional design’s role in scaling sustainable finance and offers guidance for effective policy development in emerging Asian economies.