INTRODUCTION
- On October 12, 2021, the Chief Executive Officer of the Asian Development Bank (ADB) stated that the lender will increase its climate finance targets by $20 billion, bringing the total to $100 billion by 2030.
- At the COP26 Climate Conference in Scotland in November 2021, the bank hopes to unveil its idea for decommissioning coal-fired power facilities.
- President of the Asian Development Bank Masatsugu Asakawa revealed the plans, which raise a prior $80 billion goal for climate finance for developing countries in Asia for the decade set in 2018.
SIGNIFICANCE AND CLIMATE FINANCING PLAN –
- The Asian Development Bank’s additional $20 billion in funding support will go toward climate mitigation measures such as low-carbon energy sources, private sector enterprises, and climate adaption projects.
- By 2030, the Asian Development Bank intends to invest $66 billion in climate mitigation funding. New energy storage, low-carbon transportation initiatives, and energy efficiency will all be part of it.
- The Manila-based lender will also set aside $34 billion for climate adaptation initiatives in agriculture, urban development, and water management.
- ADB also intends to expand its private sector operations to attract more private funding to fund innovative climate technology and breakthroughs. Due to an increase in demand for such financing, the bank would utilise $12 billion from its balance sheet to attract up to $30 billion in additional private capital.
COAL PLANT RETIREMENT PLAN: ADB –
- The Asian Development Bank has been collaborating with major financial institutions to establish a system to purchase coal-fired power stations in Asia and retire them early, reducing Asia’s largest source of carbon emissions.
- According to the President of the Asian Development Bank, the group has completed an initial feasibility assessment and is currently working on a more comprehensive examination of the concept in three target countries: the Vietnam, Indonesia, and Philippines.
- The study has given ADB a framework for engaging with a diverse group of the country, regional, and global stakeholders to assist the transition from coal to clean energy.
