The Asian Development Bank (ADB) on Wednesday announced to elevate its ambition to deliver climate financing to its developing member countries (DMCs) to $100 billion for the 2019-2030 period.
“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’re taking action to meet this call by elevating our ambition to $100 billion in cumulative climate finance from our own resources by 2030,” said ADB President Masatsugu Asakawa.
ADB expects the cumulative climate financing from its own resources in 2019-2021 to reach about $17 billion, according to a message received from ADB Headquarters in Manila.
The expanded climate finance ambition is a key element of ADB’s efforts to support its DMCs. Facing the interconnected challenges of the 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.
New avenues for climate mitigation, including energy storage, energy efficiency, and low-carbon transport are the first area. ADB expects its cumulative climate mitigation finance to reach $66 billion.
The second area is 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.
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.
The fifth area is the 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 mobilise private capital towards climate finance.