ADB Asia-Pacific climate financing hits $9.8B in 2023

THE Asian Development Bank (ADB) said it committed close to $10 billion in climate finance to developing member countries in the Asia and the Pacific last year, up 46% from a year earlier.

“Climate change threatens the future of all development. 2023 was the hottest year on record and saw a swath of extreme, deadly climate impacts in our region,” ADB President Masatsugu Asakawa said in a statement.

“As the climate bank for Asia and the Pacific, ADB is deeply committed to helping our developing members de-fossilize their economies, progress along their climate transition pathways, and achieve their net-zero goals. We must act together, with urgency and at scale,” he added.

The bank’s commitment to climate finance to the region included $5.5 billion for mitigation and $4.3 billion for adaptation financing.

“The bank’s climate adaptation finance commitments in 2023 mean that ADB has provided more than $10.4 billion in cumulative adaptation financing from 2019 to 2023 — surpassing its target of $9 billion in 2019–2024 a year early,” the bank said.

The ADB said that adaptation financing will be crucial for the region as it is more likely to experience extreme weather events such as droughts, heavy rains, and intense heat.

“Asia and the Pacific originates more than half of global carbon dioxide emissions while also being acutely vulnerable to the impacts of climate change,” it said.

“The region needs to invest an estimated $3.1 trillion per year in energy and transport assets alone to meet net zero by 2050 — around 50% more than current levels,” it added.

The ADB has said it is targeting to deliver $100 billion in climate financing to its developing member countries by 2030.

Part of its commitments last year include the $1-billion loan for the Davao Public Transport Modernization Project.

The project aims to modernize the public transportation system of Davao City through the procurement of about 1,100 electric buses. The fleet is expected to cut 60% of annual greenhouse gas emissions from public transport in the city.

In December, the ADB announced it will allocate $10 billion in climate finance for the Philippines between 2024 and 2029.

In 2022, the ADB was the Philippines’ top provider of active official development assistance, accounting for 33.47% of the total or $10.85 billion. — Luisa Maria Jacinta C. Jocson