ADB to double support for projects tackling climate change

28 Sep 15

The Asian Development Bank is to double its annual climate change financing to $6bn by 2020, president Takehiko Nakao has said.

Overall, this will amount to more than 30% of its total financing, of which some $4bn will be used for scaling up support for renewable energy, energy efficiency, sustainable transport, and building smart cities.

The remaining $2bn is to be spent on more resilient infrastructure, climate-smart agriculture, and better preparation for climate-related disasters.

ADB said it had been able to increase this funding as its overall financing capacity had increased through more efficient use of its balance sheet.

Nakao said: “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.

“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.”

ADB will also continue to explore innovative co-financing opportunities with public and private partners.

For example, it will seek to mobilise financing from the Green Climate Fund, and to work with institutional investment through private equity funds such as the ADB-sponsored Asia Climate Partners. ADB will also issue more green bonds.

Additionally, ADB will adjust its procurement systems to facilitate integration of cleaner technology into its projects.

The bank’s assistance to projects in 2014 totalled $22.9bn, including co-financing of $9.2bn.

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