By Faridat Salifu
The Asian Development Bank (ADB) said it pledged a record amount of US$9.8 billion climate finance to support its developing member countries (DMCs) in Asia and the Pacific during the year 2023.
The amount represents a significant increase of more than 46 per cent compared to the bank’s 2022 commitments.
Highlighting the breakdown of the financing, the ADB allocated US$5.5 billion for mitigation and US$4.3 billion for adaptation efforts.
Notably, the bank’s climate adaptation finance commitments in 2023 have exceeded US$10.4 billion in cumulative adaptation financing from 2019 to 2023, surpassing its 2019–2024 target of US$9 billion a year ahead of schedule.
Emphasizing the significance of adaptation financing, ADB President Masatsugu Asakawa stressed the urgent need for investments in adaptation, particularly in the face of escalating climate threats such as extreme heat, droughts, and heavy rains in the region.
As the climate bank for Asia and the Pacific, ADB remains deeply committed to supporting its developing members in de-fossilizing their economies, advancing their climate transition pathways, and achieving net-zero goals.
Asia and the Pacific is responsible for more than half of global carbon dioxide emissions while also being highly vulnerable to climate change impacts.
To meet the net-zero target by 2050, the region needs to invest an estimated US$3.1 trillion annually in energy and transport assets, which is approximately 50 per cent more than current levels.
As part of its comprehensive climate finance strategy, ADB aims to provide US$100 billion in climate financing from its resources from 2019 to 2030.
Notable flagship climate projects in 2023 include a US$400 million policy-based loan to support Bangladesh in implementing its national adaptation plan, a US$1 billion loan to facilitate the deployment of the Philippines’ first large-scale electric bus system in Davao City, and an US$18 million grant from the Asian Development Fund (ADF) to enhance the resilience, inclusiveness, and sustainability of water supply and sanitation services in the Federated States of Micronesia.
Furthermore, ADB continues its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while working to eradicate extreme poverty.