Asian Development Bank (ADB) has won commitments of $665 million funding at the COP26 in Glasgow to support green infrastructure projects in Southeast Asia.
Four international partners; the UK government, the EU, Italy’s Cassa Depositi e Prestiti (CDP), and the Green Climate Fund (GCF) all pledged to grant funds for the ADB’s new Green Recovery Platform.
The Green Recovery Platform of ADB targets aims to support investments in climate-resilient, environmentally-friendly, sustainable infrastructure projects in South East Asia, assisting the region’s recovery from the COVID-19 pandemic.
ADB President Masatsugu Asakawa attended the launch event with ministers and senior officials from ASEAN and partner countries. He said, “ASEAN countries have a unique opportunity to build a green and inclusive future after the COVID-19 pandemic”.
At this event, UK Foreign Secretary Elizabeth Truss said “This year, the UK became ASEAN’s first new Dialogue Partner in 25 years. We’re now working together to build stronger economic and investment relationships and tackle climate change.”
The sustainable financing package includes £110 million ($151 million) from the UK government, €50 million ($58 million) from the European Union, €132 million ($153.2 million) from Italian state lender CDP, and $300 million from the Green Climate Fund (GCF), totaling the amount around $665 million.
The partnerships set out to support the ASEAN Catalytic Green Finance Facility (ACGF), established by the ASEAN Infrastructure Fund and managed by ADB.
The current funding adds to the co-financing commitments already pledged to the ACGF since 2019 of $1.4 billion, bringing the total finance facility to $2 billion. The existing financing partners supporting ACGF include ADB, Agence Française de Développement (AFD), the German state-owned development bank KfW, the European Investment Bank, and the South Korean Government.
The Covid-19 pandemic has had a pessimistic impact on the economy, health, and society in Southeast Asia. The Green Recovery Platform of ADB will provide financing and technical assistance to reduce investment risks and catalyze both public and private investment on green infrastructure projects in the ASEAN region.
The ASEAN Green Recovery Platform constitutes a part of ADB’s commitment to raising its ambition for 2019–2030 cumulative climate financing to $100 billion, ensuring that a minimum of 75 percent of the projects will address climate change mitigation and adaptation by 2030.
Established in 1966, the ADB aims to achieve a prosperous, inclusive, climate-resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eliminate extreme poverty in the region. ADB provides loans, equity investments, and technical assistance, to its member countries and partners, promoting social and economic development.