ADB to double annual climate financing to $6 billion for Asia-Pacific
ADB’s spending on tackling climate change will rise to around 30% of its overall financing by the end of this decade.
ADB’s announcement comes against the backdrop of a promise by developed countries to mobilize $100 billion every year from 2020 to counter climate change in developing countries.
Out of the $6 billion, $4 billion will be dedicated 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% 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. ■