(29 February 2024 – Philippines) The Asian Development Bank will allocate 55 percent of financing towards tackling climate change by 2030, up significantly from the current 40 percent allocation.
Asia's temperature averages outpaced global average rises by almost double the rate between 1991 and 2022 compared with the previous three decades through 1990, the World Meteorological Organisation reports. For effective use of capital, the ADB is reworking its traditionally conservative lending practices. The bank is expected to boost the maximum amount of available financing to US$35 billion per year from the current US$25 billion.
Moving away from CO₂ intensive coal power plants will be a key challenge for Asia as emerging markets rely heavily on the cheap and abundant fossil fuel.
“There's an overwhelming lack of funding to address climate change, food security and other global challenges. ADB has the tools to be involved in projects from upstream to downstream“ said ADB Strategy, Policy and Partnerships Director-General, Tomoyuki Kimura.
“While maintaining the highest AAA credit rating, we're working to expand financing through the effective use of capital, by reassessing organisational management and by mobilising private-sector funds,”