ADB to double annual climate financing to $6 bn by 2020

NEW DELHI: Asian Development Bank President Takehiko Nakao today announced that the lender will double its annual climate financing to USD 6 billion from USD 3 billion currently for Asia-Pacific by 2020.

Asian Development Bank (ADB)'s announcement comes against the backdrop of a promise by developed countries to mobilise USD 100 billion every year from 2020 to counter climate change in developing countries.

ADB's spending on tackling climate change will rise to around 30 per cent of its overall financing by the end of the decade.

In a statement, the regional development bank said out of the USD 6 billion, USD 4 billion will be dedicated to mitigation through scaling up support for renewable energy, energy efficiency, sustainable transport and building smart cities.

The remaining USD 2 billion will be for adaptation through more resilient infrastructure, climate-smart agriculture and better preparation for climate-related disasters, it said.

"World leaders gathering in New York this weekend will commit to achieving 17 historic Sustainable Development Goals (SDGs) by 2030 and ADB stands ready to be an important part of global efforts to finance these goals.

"Nowhere is tackling climate change more critical than in Asia and the Pacific, where rising sea levels, melting glaciers and weather extremes like floods and droughts are damaging livelihoods and taking far too many lives," the statement quoted Nakao as saying.

Six of the 10 nations most vulnerable to climate change in 2013 are in Asia-Pacific (Philippines, Cambodia, India, Pakistan, Lao PDR, Vietnam).

Burgeoning cities such as Kolkata, Mumbai, Dhaka, Guangzhou, Ho Chi Minh City, Shanghai, Bangkok, Yangon and Manila are among those most threatened by coastal flooding, ADB said.

The multi-lateral lender said that in addition to scaling up its own climate financing, it will continue to explore new and innovative co-financing opportunities with public and private partners.