Asian Development Bank’s $ 100 billion green finance pledge
The Asian Development Bank (AfDB) aims to provide $ 100 billion in climate finance to its developing member countries (PMCs) from 2019 to 2030.
âThe battle against climate change will be won or lost in Asia and the Pacific,â AfDB President Masatsugu Asakawa said.
âThe climate crisis is getting worse by the day, prompting many to call for increased climate finance. We are taking action to respond to this call by raising our ambition to $ 100 billion in cumulative climate finance from our own resources by 2030. â
In 2018, the AfDB pledged to ensure that at least 75% of the total number of its operations support climate action and that its own climate finance resources available until 2030 reach a cumulative amount of $ 80 billion. .
Wednesday’s announcement raises the ambition of this financing and the AfDB expects cumulative climate finance from its own resources for 2019-2021 to reach around $ 17 billion.
The additional $ 20 billion will support the climate agenda in five key areas such as new avenues for climate change mitigation, including energy storage, energy efficiency and low-carbon transport. The AfDB expects its cumulative financing for climate change mitigation to reach $ 66 billion.
The article continues under the ad
Projects in climate-sensitive sectors, including urban, agriculture and water, will be designed with the main goal of effective climate adaptation and enhanced resilience.
Third, there will be an increase in climate finance in AfDB’s partnership operations with the private sector.
The AfDB has said it intends to support these initiatives with $ 12 billion in cumulative private sector climate finance from its own resources and expects an additional inflow of $ 18 billion to $ 30 billion.
Innovative financing platforms
There will also be support for a green, resilient and inclusive recovery from Covid-19, including through innovative funding platforms such as the ASEAN Green Funding Catalytic Facility and the Green Recovery Platform. , which should leverage funds from capital markets and private sector investors for low carbon infrastructure.
The AfDB said it will receive support to advance reforms in RMCs to unlock actions through policy-based lending to support policies and institutions aimed at building resilience and mitigation. climate change.
Founded in 1966, ADB is owned by 68 members, including 49 from the region.
All DMCs are eligible for funding, except those that have come out of regular AfDB assistance.
The bank explained that it determines the eligibility of MDSs to borrow from ordinary capital resources (OCR) at near-market terms, or on concessional OCR lending terms, or to receive grants from the Asian Development Fund. .
SMDs are classified according to their gross national income per capita and creditworthiness, in accordance with the AfDB’s classification and grading policy.