ADB plans to deliver $100B for climate financing.
The Asian Development Bank (ADB) has announced its plan to provide $100 billion in climate finance by 2030. As part of this initiative, ADB has launched a new innovative financing mechanism in the Asia-Pacific region, which can mobilize up to $15 billion to finance projects aimed at reducing greenhouse gas emissions and increasing resilience to climate change. The program will leverage guarantees from partners to accelerate investments in the fight against climate change by billions of dollars.
ADB Director General for Central and West Asia, Evgeny Zhukov, emphasized the need for regional cooperation to manage shared natural resources for the benefit of all. He made this statement at the ADB annual meeting where he presented the project “CAREC 2030: Supporting Regional Actions to Address Climate Change.” CAREC is a preliminary study of climate issues and opportunities in the participating countries of the Central Asian Regional Economic Cooperation Program.
According to the CAREC study, climate change is expected to have a significant impact on the CAREC region, which includes Central Asia, Mongolia, Pakistan, China, and the South Caucasus. An above-average temperature increase could lead to even greater water scarcity, increased desertification, and more extreme weather events such as floods and droughts.
To address these issues, the CAREC program will develop a climate change strategy to identify priority sectors for cooperation and propose a funding mechanism for these projects. ADB hosts the CAREC secretariat and has invested approximately US$ 50 billion in CAREC-related projects since its establishment in 2001.
The ADB’s commitment to providing $100 billion in climate finance by 2030 demonstrates its dedication to combatting climate change and promoting sustainable development in the Asia-Pacific region. Through innovative financing mechanisms such as the CAREC program, ADB aims to mobilize resources to reduce greenhouse gas emissions and build resilience to climate change.
