The Asian Development Bank (ADB) and the Green Climate Fund (GCF) have agreed to partner toward a “green recovery” for members confronting the harsh economic impact of the coronavirus disease (COVID-19) pandemic.
ADB President Masatsugu Asakawa met with GCF Executive Director Yannick Glemarec to investigate opportunities for a pathway of low-carbon and climate-resilient development for Asian Development Bank members in Asia and the Pacific hit hard by the health crisis. They agreed to strengthen collaboration on nonsovereign operations while ensuring GCF’s processes are as flexible as possible to foster at-scale financing.
“Asian Development Bank is committed to helping our members build a ‘green recovery’, and we stand ready to broaden our collaboration with development partners like GCF,” stated Mr. Asakawa. “The decisions we make now will create systems, institutions, and assets, and define development directions that will last well into the future.”
Under Strategy 2030, Asian Development Bank will ensure that 75% of its committed projects will support climate change mitigation and adaptation by 2030. Climate finance from ADB’s private resources will reach $80 billion cumulatively from 2019 to 2030. In 2019, ADB committed more than $6.5 billion in climate financing. Concessional financing from partners will also be crucial for helping ADB’s members meet their climate goals.
GCF has approved total funding of $473 million for 10 ADB projects—making ADB the fourth-largest accredited entity of GCF—and Mr. Asakawa and Mr. Glemarec discussed potential areas for leveraging GCF co-financing in the near term for the benefit of ADB’s developing members.
Asian Development Bank’s support for developing members to cope with, and recover from, the impact of COVID-19 includes an enhanced support package of $20 billion, announced on 13 April.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.