ADB to double climate financing for Asia Pacific to $6B by 2020

MANILA, Philippines - The Asian Development Bank (ADB) will be doubling its annual climate financing for Asia-Pacific to $6 billion by 2020.

In a statement, the ADB said the financing for addressing climate change currently stands at $3 billion.

The increase in the budget means funds for tackling climate change for the region will make up around 30 percent of the total financing by 2020.

ADB said bulk or $4 billion of the proposed budget would be used to support renewable energy, energy efficiency, sustainable transport, and building smart cities.

The remaining $2 billion would be utilized for building resilient infrastructure, promoting climate-smart agriculture, and preparing for natural disasters.

“World leaders gathering in New York this weekend will commit to achieving 17 historic sustainable development goals by 2030 and ADB stands ready to be an important part of global efforts to finance these goals,” ADB president Takehiko 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,” he continued.

Philippine Socioeconomic Planning Secretary Arsenio Balisacan has flown to New York earlier this week for the United Nations’ General Assembly Meeting to discuss the sustainable development goals.

Among these goals include calls for urgent action to address climate change and its aftermath. At the same time, mitigating and adapting to climate change have been identified as targets under a number of the goals such as ending poverty, achieving food and water security, and building sustainable cities.

The ADB said it would also be looking at other co-financing opportunities with public and private partners to help the region deal with climate change in addition to increasing its own budget for the cause.

“For example, ADB will seek to mobilize concessional financing from the Green Climate Fund, which is becoming operational, for ADB’s adaptation projects in proper countries,” the bank said.

“ADB will tap institutional investment through private equity funds like the ADB-sponsored Asia Climate Partners. ADB will also issue more green bonds as an important source of funding for its climate operations,” the bank added.

Nakao said that since technology plays a significant role in addressing climate change, the bank would ensure clearer, and more advanced technology would be integrated in its projects.

Apart from this, the ADB intends to strengthen partnerships with centers of excellence across the world in order to furnish member countries knowledge on climate change, he said.

Show comments