ADB approves a record $3.7b in 2016 for climate operations [1]
Wednesday, February 15, 2017 - 15:21. Updated on Wednesday, April 5, 2017 - 17:39.
The Asian Development Bank (ADB) has approved a record $3.7 billion in climate operations in 2016, a 42% increase from $2.6 billion it approved in 2015. This comprised $2.65 billion for climate mitigation and $1.08 billion for climate adaptation.
In the Pacific, climate operations include the ADB’s proposed Pacific Islands Renewable Energy Investment Program with the support of the Green Climate Fund. The program will help Small Island Developing States including Tonga, transition from diesel power generation to solar, hydropower, and wind energy.
According to a statement released by the ADB, it expects their spending on climate change to increase to around 30% of its overall financing by 2020.
“ADB is responding to the Paris Agreement by boosting its support to climate action in developing member countries in line with their Nationally Determined Contributions and the Sustainable Development Goals,” said ADB President Takahiko Nakao.
“ADB remains committed to scaling up its climate financing to $6 billion by 2020, of which $4 billion will target mitigation and $2 billion adaptation.”
The response to the climate action commitments made under COP21 Paris agreement, includes developing a plan outlining the ADBs future climate change direction from 2017 to 2030 and its $6 billion goal by 2020.
$701 million was mobilized by the ADB from external sources in addition to its own financing, investing $595 million in mitigation and $106 million in adaptation. In 2016, the ADB together with external finances delivered over $4.4 billion in climate finance.
Adaptation projects such as the Bihar New Ganga Bridge Project in India, backed by the ADB with a $500 million loan, will see a bridge built across the Ganges River and an integrated road network with $200 million going towards climate adaptation.
Among mitigation projects, $47 million has been loaned to Thailand for its Distributed Commercial Solar Power Project to assist deploying a total of 100 megawatts of solar photovoltaic systems on commercial and industrial infrastructure at no upfront cost to the host companies.
The ADB will continue to work with the public and private sector partners to mobilize additional financing for climate projects.
The ADB is based in Manila and is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. It was established in 1966 and celebrates 50 years of development partnership in the region. The ADB is owned by 67 members, 48 from the region.