ADB boosts 2019-2030 climate financing goals to $100 billion

The Chief of Asian Development Bank (ADB) announced on October 12, 2021, that the lender will boost its climate financing goals by $20 billion to a new target of $100 billion through 2030.

The bank aims to launch its concept for retiring the coal-fired power plants at the COP26 Climate Conference in Scotland in November 2021.

The plans, disclosed by Asian Development Bank President Masatsugu Asakawa, increase a previous $80 billion goal for climate financing for developing nations in Asia for the decade announced in 2018.

Asakawa said that the fight against Climate Change will be won or lost in Asia and the Pacific, and we are committed to serving as a Climate bank and a long-term climate partner for our region.

Significance

The additional $20 billion by the Asian Development Bank in financing support will provide the support for climate mitigation efforts including the low-carbon energy sources, private sector projects, and climate adaptation projects.

Some good news ahead of #COP26: The Asian Development Bank is boosting its 2019-2030 climate financing goal to $100 billion.

“The battle against climate change will be won or lost in Asia and the Pacific,” says @ADB_HQ President.https://t.co/4n9mgl8ov5

— UN Climate Change (@UNFCCC) October 13, 2021

ADB’s plans for climate financing: Key Details

• Asian Development Bank now plans for $66 billion for climate mitigation financing through 2030. It will include new energy storage, low carbon transportation investments, and energy efficiency.

• The Manila-based lender will also plan for climate adaptation financing of $34 billion including agriculture, urban, and water adaptation projects.

• ADB also plans on boosting its private sector operations to attract more private sector capital to finance the new climate technologies and innovations. The bank will use $12 billion from its balance sheet to attract up to $30 billion in new private capital, due to an increase in demand for such financing.

Plan of Coal plant retirements by ADB

The Asian Development Bank has been working with the major financial firms to develop a mechanism to buy up coal-fired power plants in Asia and retire them early to shrink the biggest source of carbon emissions.

As per ADB President, the group has finished an initial feasibility study and has been now embarking on a longer study of the concept in three target countries- the Philippines, Vietnam, and Indonesia.

The study has provided a framework for ADB to engage with a broad set of country, regional and global stakeholders in order to support the transition from coal to clean energy. According to Asakawa, the interest has been growing among the other developing nations to join the initiative at a later date.