THE ASIAN Development Bank (ADB) has committed to align its operations with the goals of the Paris Agreement as the multilateral lender seeks to help its developing member countries (DMCs) achieve sustainability and resilience.
“ADB will achieve full alignment of its sovereign operations by 1 July 2023. Alignment of its non-sovereign operations will reach 85% by 1 July 2023 and 100% by 1 July 2025,” it said in a news release posted on its website Thursday.
Sovereign operations include loans and grants, which have not yet received financial close, while non-sovereign operations cover investments cleared by the ADB, among others.
“ADB recognizes that the implementation of the Paris Agreement is critical in the global fight against climate change,” ADB President Masatsugu Asakawa was quoted as saying.
“By fully aligning our operations to the goals of the Paris Agreement and expanding our investments in resilience and adaptation, ADB will lower the carbon footprint across Asia and the Pacific and help our developing member countries (DMCs) to move their economies toward a more sustainable, resilient, and inclusive future,” he added.
Mr. Asakawa made the announcement on Thursday during the V20 Climate Vulnerables Finance Summit, which was hosted by the Bangladesh government.
The Paris agreement is a global treaty that aims to keep the global temperature’s rise below 2°C. The Philippines is one of the signatories of the global treaty.
The ADB said in a statement that it will support the climate plans of DMCs by addressing physical risks and ensuring a “just transition” away from fossil fuel-dependent industries.
The bank added it is planning to ramp up investments in climate change adaptation and resilience, with cumulative financing of $9 billion from 2019 to 2024.
The ADB said its goal to align its operations with the Paris treaty and scale up investments in adaptation and resilience complement its 2030 target of ensuring that 75% of its operations will support climate action, with its climate finance resources reaching $80 billion in a decade. — A.Y. Yang