Manila-based Asian Development Bank (ADB) said it will double its annual climate change financing to help Asia Pacific countries achieve the target of taking urgent action against the adverse impact of the climate phenomenon under the United Nations’ Sustainable Development Goals (SDGs).
ADB President Takehiko Nakao announced on Friday that ADB aims to raise its annual climate financing to $6 billion by 2020 from the current $3 billion.
Spending by the multilateral institution on tackling climate change will then take up about 30 percent of its overall financing by the end of this decade.
The announcement comes against a backdrop of a pledge 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 is expected for mitigation through scaling up support for renewable energy, energy efficiency, sustainable transport, and building smart cities, the statement said.
Two billion dollars will be for adaptation through more resilient infrastructure, climate-smart agriculture, and better preparation for climate-related disasters, it said.
ADB said its proposed doubling of climate spending reflects its strategic priorities, as well as the increase in the lender’s overall financing capacity by up to 50 percent due to a more efficient use of its balance sheet—combining the equities of its Ordinary Capital Resources and Asian Development Fund (concession finance window) in 2017.
ADB role in UN goals
“World leaders gathering in New York this weekend will commit to achieving 17 historic Sustainable Development Goals (SDGs) by 2030 and ADB stands ready to be an important part of global efforts to finance these goals,” Nakao said.
“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,” he added.
Under the SDGs is the 13th goal, which specifically calls for urgent action to combat climate change and its impacts.
Also, mitigating and adapting to a changing climate are key to most of the other goals including ending poverty, achieving food and water security, providing access to energy, and building sustainable cities.
Besides scaling up its own climate financing, the ADB said it will continue to explore new and innovative cofinancing opportunities with public and private partners.
For example, the lender said its will seek to mobilize concessional financing from the Green Climate Fund, which is becoming operational, for ADB’s adaptation projects in poorer countries. ADB will tap institutional investment through private equity funds like the ADB-sponsored Asia Climate Partners.
DB will also issue more green bonds as an important source of funding for its climate operations.
Meanwhile, Nakao stressed the importance of technology in tackling climate change, and said that ADB will adjust its procurement systems in order to facilitate the integration of cleaner and more advanced technology into its projects.
He said the ADB will also strengthen partnerships with centers of excellence across the world to provide its member countries with cutting-edge knowledge and expertise on climate change.