ADB raises climate finance ambition to $100 billion by 20302 min read . Updated: 13 Oct 2021, 04:18 PM IST
- ADB expects the cumulative climate financing from its own resources in 2019–2021 to reach about $17 billion
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The Asian Development Bank (ADB) on Wednesday said it is elevating its ambition to deliver climate financing to its developing member countries by $20 billion to $100 billion from 2019–2030.
ADB president Masatsugu Asakawa in a statement said the battle against climate change will be won or lost in Asia and the Pacific. “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."
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. ADB expects the cumulative climate financing from its own resources in 2019–2021 to reach about $17 billion.
ADB said the additional $20 billion will provide support for the climate agenda in five main areas. 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 developing member countries 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," ADB said in a statement.
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