Asian Development Bank announced today the doubling in the size of its annual climate financing to US$6 billion by 2020.
ADB’s spending on tackling climate change will rise to around 30 per cent of its overall financing by the end of this decade, said the bank's president, Takehiko Nakao.
ADB’s announcement comes against the backdrop of a promise by developed countries to mobilise $100 billion every year from 2020 to counter climate change in developing countries.
Out of the $6 billion financing pool, ADB will dedicate $4 billion to mitigation through scaling up support for renewable energy, energy efficiency, sustainable transport, and building smart cities. $2 billion will be for adaptation through more resilient infrastructure, climate-smart agriculture, and better preparation for climate-related disasters.
ADB’s doubling of climate finance reflects its strategic priorities as well as the increase in ADB’s overall financing capacity by up to 50 per cent due to a more efficient use of its balance sheet by combining the equities of its Ordinary Capital Resources and Asian Development Fund (concessional finance window) in 2017.
“World leaders gathering in New York this weekend will commit to achieving 17 historic Sustainable Development Goals (SDGs) by 2030 and ADB stands ready to be an important part of global efforts to finance these goals,” Nakao said. “Nowhere is tackling climate change more critical than in Asia and the Pacific, where rising sea levels, melting glaciers, and weather extremes like floods and droughts are damaging livelihoods and taking far too many lives.”
Later this year, at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) in Paris, the international community is expected to finalise a new global climate agreement and the way to finance it.
Nakao stressed the importance of technology in tackling climate change, and said that ADB will adjust its procurement systems in order to facilitate the integration of cleaner and more advanced technology into its projects. ADB will also strengthen partnerships with centres of excellence across the world to provide its member countries with cutting-edge knowledge and expertise on climate change.