The Asian Development Bank (ADB) upped its climate financing investments by 42% in 2016 compared to 2015, plowing more than $3.7 billion into efforts to mitigate and tackle the effects of climate change around the world.
This record figure was largely driven by the ADB’s desire to see the goals outlined by the 2015 Paris Agreement achieved, said ADB president Takehiko Nakao. Of that $3.7 billion figure, $2.65 billion of financing from ADB’s internal sources went towards climate mitigation, with a further $1.08 billion spent on climate adaptation.
“ADB remains committed to scaling up its climate financing to $6 billion by 2020, of which $4 billion will target mitigation and $2 billion adaptation,” said Nakao. A further 30% increase in overall annual financing is forecast by 2020, ADB said.
Beyond drawing upon its own internal funds, ADB was also able to mobilize a total of $701 million from external sources in 2016 – a figure that, combined with ADB’s own investments, comes to $4.4 billion raised directly or indirectly by ADB last year for climate investment.
The Bank was pivotal in bringing a number of large-scale solar PV projects to realization in 2016, including 100 MW of Thai solar systems via a $47 million loan. Monies were also steered towards new infrastructure in flood- and climate-hit regions, as well as renewable energy projects in the wind, storage and hydro sectors.
As part of the ADB’s Paris Agreement pledge, the bank is also developing a Climate Change Strategic Framework that will outline its future direction relating to climate change between now and 2030. This framework will deliver guidance on how best to funnel a further $6 billion in funding by 2020 towards mitigating the worst effects of climate change in Asia and the pacific region.