The Asian Development Bank (ADB) said Thursday it will allocate a record $9.8 billion in climate finance from its own resources in 2023, up by more than 46 percent from its 2022 commitments.
It said the funds would help developing member countries (DMCs) in Asia and the Pacific reduce greenhouse gas emissions and adapt to the impact of climate change. Of the total, $5.5 billion was allocated for mitigation and $4.3 billion for adaptation.
“Climate change threatens the future of all development,” said ADB president Masatsugu Asakawa. “2023 was the hottest year on record and saw a swath of extreme, deadly climate impacts in our region. We must act together, with urgency and at scale.”
The bank’s 2023 climate adaptation finance commitments brought its cumulative total from 2019 to 2023 to more than $10.4 billion, exceeding its target of $9 billion for the 2019-2024 period a year early.
Adaptation investments are critical in Asia and the Pacific, which is experiencing more extreme heat, droughts, and heavy rains. However, investments in adaptation remain a fraction of what is required.
Asia and the Pacific accounts for more than half of global carbon dioxide emissions while also being highly vulnerable to climate change impacts. The region needs to invest an estimated $3.1 trillion per year in energy and transport assets alone to meet net-zero emissions by 2050, around 50% more than current levels.
As part of its commitment to provide $100 billion in climate financing from its own resources from 2019 to 2030, ADB approved several flagship climate projects in 2023.
These included a $400-million policy-based loan to help Bangladesh implement its national adaptation plan; a $1-billion loan to support the Philippines’ first large-scale electric bus system in Davao City; and an $18-million grant to improve water supply and sanitation services in the Federated States of Micronesia.