The Asian Development Bank (ADB) today
announced its elevated ambition of delivering climate financing of $100
billion to its developing member countries (DMCs) by 2030.
“The battle against climate change will be won or lost in Asia and the
Pacific,” said ADB President Masatsugu Asakawa.
“The climate crisis is worsening daily, prompting many to call for
increased climate finance. We are taking action to meet this call by
elevating our ambition to $100 billion in cumulative climate finance from our
own resources by 2030,” he added.
In 2018, ADB committed to ensuring at least 75% of the total number of its
operations support climate action and its own climate finance resources reach
at least a cumulative $80 billion by 2030.
Today’s announcement elevates the ambition of this financing, said a press
release.
ADB expects the cumulative climate financing from its own resources in
2019-2021 to reach about $17 billion.
The expanded climate finance ambition is a key element of ADB’s efforts to
support its DMCs.
Facing the interconnected challenges of the coronavirus disease (COVID-19)
pandemic and the climate crisis, many DMCs are taking bold action to promote
a green, resilient, and inclusive recovery.
The additional $20 billion will provide support for the climate agenda in
five main areas. These are:
First: new avenues for climate mitigation, including energy storage,
energy efficiency, and low-carbon transport. ADB expects its cumulative
climate mitigation finance to reach $66 billion.
Second: a scale-up of transformative adaptation projects.
Projects in climate-sensitive sectors, such as urban, agriculture, and
water, will be designed with a primary purpose of effective climate
adaptation and enhanced resilience. ADB expects its cumulative adaptation
finance to reach $34 billion.
Third: an increase in climate finance in ADB’s private sector operations.
This includes creating more commercially viable projects for both ADB and
private investors.
The expansion will be underpinned by improvements in operational
efficiencies, a post-pandemic recovery in market demand for financing, new
technologies and innovations in climate financing, and new areas of business
for private sector climate operations.
ADB intends to support these initiatives with $12 billion in cumulative
private sector climate finance from its own resources and anticipated
crowding in of an additional $18 billion to $30 billion.
Fourth: support for a green, resilient, and inclusive recovery from COVID-
19, including through innovative financing platforms such as the ASEAN
Catalytic Green Finance Facility and Green Recovery Platform, which are
expected to leverage funds from capital markets and private sector investors
for low-carbon infrastructure.
Fifth: support to advance reforms in DMCs to unlock actions through
policy-based lending to support policies and institutions for enhanced
climate resilience and climate mitigation.
Across these areas, ADB will continue to expand access to new, climate-
focused technologies and mobilize private capital toward climate finance.bss