ADB to Disburse US$100 Billion worth of Climate Funds
Summary
The Asian Development Bank (ADB) will increase the financial support allocation to tackle climate change, from US$80 billion to US$100 billion. The bank will disburse these funds to ADB member countries, including Indonesia, in stages until 2030. "The climate crisis is worsening daily, prompting many to call for increased climate finance. We are taking action to meet this call by elevating our ambition to US$100 billion in cumulative climate finance from our own resources by 2030,” ADB President Masatsugu Asakawa revealed in a written statement on Wednesday.
Asakawa explains that the additional funding is ADB's main effort to support its members' climate change ambition that covers five main agendas:
- financing for climate mitigation, including energy storage, energy efficiency, and low-carbon transport worth US$66 billion
- scaling up transformative adaptation projects to improve the adaptability and resilience of climate-sensitive sectors, such as urban, agriculture, and water worth US$34 billion.
- increasing climate finance in ADB’s private sector operations to improve operational efficiencies, a post-pandemic demand for financing, new technologies and innovations in climate financing, as well as new business areas for private-sector climate operations. ADB plans to disburse US$12 billion and reserve an additional US$18-US$30 billion.
- supporting a green, resilient, and inclusive recovery from COVID-19, including through innovative financing platforms, such as the ASEAN Catalytic Green Finance Facility and the Green Recovery Platform, to leverage funds from the capital market and private sector investors for low-carbon infrastructure.
- supporting reforms to unlock actions through policy-based lending to support policies and institutions to improve climate resilience and mitigation in ADB member countries.