The Asian Development Bank (ADB) has set a new benchmark in climate finance commitment for 2023, reinforcing its dedication to assisting developing member countries (DMCs) in Asia and the Pacific to reduce greenhouse gas emissions and adapt to the impacts of climate change. ASIA-Plus reported that the ADB announced that it committed a record $9.8 bn in climate finance in 2023, with $5.5 bn allocated for mitigation and $4.3 bn for adaptation. This represents a substantial increase of over 46% compared to its climate financing commitments in 2022.
The ADB's commitment to climate adaptation financing in 2023 surpassed its target, reaching more than $10.4 bn in cumulative adaptation financing from 2019 to 2023. This exceeds the target set for the period of 2019–2024 by a year. Adaptation financing is particularly crucial in Asia and the Pacific, where extreme heat, droughts, and heavy rains are on the rise, yet investments in adaptation remain insufficient.
Asia-Pacific, responsible for over half of global carbon dioxide emissions, is also highly vulnerable to climate change impacts. The region requires an estimated $3.1 trillion per year in energy and transport assets alone to achieve net zero by 2050, a figure around 50% higher than current levels.
As part of its commitment, ADB aims to provide $100 bn in climate financing from its own resources from 2019 to 2030. In 2022, the bank committed $6.7 bn of climate finance from its resources, including $4 bn for mitigation and $2.7 bn for adaptation.
Notable climate projects in 2023 include a $400 mn policy-based loan to support Bangladesh in implementing its national adaptation plan, a $1 bn loan to facilitate the deployment of the Philippines' first large-scale electric bus system in Davao City, and an $18 mn grant from the Asian Development Fund (ADF) to enhance water supply and sanitation services in the Federated States of Micronesia.
To strengthen Tajikistan's resilience to climate risks, 73% of ADB ongoing projects in 2023 incorporated climate mitigation or adaptation measures, encompassing climate-proofed infrastructure, green buildings, energy efficiency, early warning systems, and tree planting, among other initiatives.
Under the bank's country partnership strategy for 2021-2025, ADB operations in Tajikistan focus on three strategic priorities: supporting structural reforms for enhanced resource allocation and mobilization, improving labor productivity through human capital development, and fostering better livelihoods through strategic investments.
Earlier Daryo reported that the economic outlook for developing Asia in December 2023, as per the Asian Development Outlook, presents a nuanced perspective. Despite encountering obstacles, the region demonstrates sustained growth propelled by resilient domestic demand, substantial remittances, and a recovering tourism industry.
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