ADB Doubles Climate Financing in Private Sector Operations as Transactions Reach Record High

In 2023, the Asian Development Bank (ADB) doubled its climate financing from private sector operations to $1 billion, with 75% of its projects incorporating climate-related funding, as stated in the Development Effectiveness Report of Private Sector Operations 2023. ADB committed a record 40 private sector transactions worth $1.7 billion through its own capital resources, marking a 54% increase from the previous year.

Long-term co-financing with the private sector amounted to $3.4 billion, showcasing ADB’s dedication to mobilizing private capital for addressing development priorities like climate change. ADB achieved $2.7 in long-term co-financing for every $1 of its own private sector commitments, a significant increase from the previous year’s $1.8 co-financing ratio.

ADB Vice-President for Market Solutions, Bhargav Dasgupta, emphasized, “Our results demonstrate that ADB is a trusted development partner of the private sector, which plays a crucial role in providing the resources needed to address key development challenges in the region. In 2023, ADB led the financing of major development projects, making them appealing to investors and aiding developing member countries in achieving their climate and other development objectives.”

Together with the Japan International Cooperation Agency, ADB introduced the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), with capital up to $1.5 billion. This fund builds upon the success of the initial LEAP fund launched in 2016, offering co-financing for high-quality, climate-resilient, and sustainable infrastructure projects.

In 2023, ADB committed 25 private sector projects in frontier economies and new and challenging sectors, accounting for 63% of all projects for the year, as part of its ongoing effort to diversify its private sector operations. Its Trade and Supply Chain Finance Program facilitated over ₹4.7 billion through more than 21,000 trade and supply transactions.

The projects committed in 2023 are anticipated to benefit 170,800 micro, small, and medium-sized enterprises (MSMEs), nearly 98,000 of which are led by women. Agribusiness projects will support the livelihoods of nearly 77,000 farmers.

ADB’s active private sector portfolio has generated over half a million jobs, benefited 36.9 million MSMEs, and reduced greenhouse gas emissions by 22.2 million tons of carbon dioxide equivalent.

Committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty, ADB, established in 1966, is owned by 68 members—49 from the region.