ADB Released Unprecedented US$23.6bn for Asia-Pacific’s Climate & Development Challenges in 2023

• 30 April 2024
• Construction Focus
• 733 Views

In a landmark move, the Asian Development Bank (ADB) has earmarked a staggering US$23.6 billion for assistance in 2023, with a significant portion, US$9.8 billion, dedicated to combating climate change across the Asia-Pacific region. This announcement, made in a press release dated 25 April 2024, marks the highest annual financing allocated by the ADB for climate action, underscoring its commitment as the leading climate bank for the region.

The allocated funds are set to bolster Developing Member Countries (DMCs) in their efforts to navigate a myriad of pressing challenges, including the escalating climate crisis, conflict ramifications, food insecurity, and surging debt levels.

ADB President Masatsugu Asakawa highlighted the strategic focus of the investment, stating, “The ADB continues to be the climate bank for the Asia-Pacific, reaching the highest annual financing ever for climate action. Our investment is concentrated on sectors such as agriculture, which demands adaptation and enhancement of climate resilience, alongside renewable energy and low-carbon transportation.”

The comprehensive funding package encompasses loans, investment assistance, guarantees, and technical support extended to both governmental and private sector entities. In a testament to its robust partnerships, the ADB has also successfully mobilised an additional US$16.4 billion in co-financing, further amplifying its impact.

In 2023, the investment strategy is heavily geared towards the development of high-quality energy, transportation, and other critical infrastructure pivotal for sustainable growth. The Bank is also prioritising the strengthening of local human resources, ramping up support for education and health sectors to build a more resilient and skilled workforce.

Looking ahead, the ADB is poised for transformation, with plans to elevate its future lending operations to an ambitious US$100 billion in new lending levels over the coming decade. This strategic evolution signals the Bank’s unwavering commitment to addressing the complex development and environmental challenges facing the Asia-Pacific region, setting a new benchmark for international financial assistance.

• Investment and Funding
• Energy and Environment