The Asian Development Bank (ADB) is making a substantial investment in our planet’s future with a $100 billion initiative for a low-carbon, climate-resilient Asia and the Pacific. This ambitious initiative aims to leverage the power of both the public and private sectors to achieve maximum impact on the climate.
At the heart of ADB’s climate initiative is the Climate Change Action Plan 2023–2030. This comprehensive plan sets the ambitious goal of decarbonizing the sectors of transport and energy. It also prioritizes enhancing climate resilience through smart planning and fostering collaboration with other organizations to effectively achieve climate goals.
The action plan also outlines ADB’s strategic approach to catalyzing climate finance and stimulating innovation. These efforts are aimed at steering Asia and the Pacific towards a future that is not only climate-resilient but also low-carbon.
Given that Asian cities contribute to 75% of regional carbon emissions, ADB is putting a significant emphasis on promoting resilient, low-carbon urban development. It is also endorsing circular economy approaches as a means to mitigate any potential increase in global GHG emissions.
ADB is currently undergoing a significant reform, with the goal of becoming the climate bank of Asia and the Pacific. As part of this reform, ADB has pledged to provide $100 billion from its own funds for climate finance. This pledge spans the period from 2019 to 2030.
ADB has also approved capital management reforms, which are designed to unlock $100 billion in new funding capacity over the next decade. This funding will be used to address the region’s overlapping crises, which are of significant concern.
These reforms have been carefully designed with multiple objectives in mind. They aim to ensure ADB maintains its AAA credit rating, provide low-cost, long-term funding to developing member countries, and protect its credit rating during periods of financial stress.
ADB’s updated Capital Adequacy Framework (CAF) is an integral part of several initiatives designed to increase its lending capacity. These include the establishment of the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), and participation in the International Finance Facility for Education. These initiatives represent a significant step forward in ADB’s ongoing commitment to combat climate change and foster sustainable development in Asia and the Pacific.
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