WASHINGTON (Businesshala) – The head of the Asian Development Bank said on Tuesday that the lender will raise its climate financing targets for the 2019-2030 period from $20 billion to a new $100 billion target and aims to reduce the amount of retired coal-fired power. to launch its concept. Plants at the COP26 climate conference in Scotland next month.
The plans, revealed in an interview with Businesshala by ADB President Masatsugu Asakawa, extend the previous $80 billion target for climate financing for developing countries in Asia for the decade announced in 2018.
“The fight against climate change will be won or lost in Asia and the Pacific, and we are committed to serving as a climate bank and long-term climate partner for our region,” Asakawa said.
An additional $20 billion in financial assistance will support climate mitigation efforts, including low-carbon energy sources, climate adaptation projects and private sector projects.
Asakawa said ADB is now planning $66 billion in climate mitigation funding by 2030, including investments in new energy storage, energy efficiency and low-carbon transportation. The Manila-based lender will plan for $34 billion in climate adaptation financing, including agricultural, urban and water adaptation projects.
The bank plans to attract more private sector capital to finance new climate technologies and innovations to fuel its private sector operations, due to increased demand for such financing, from its balance sheet. Using $12 billion to attract up to $30 billion in new private capital, Asakawa said.
The plans were presented Tuesday to US Treasury Secretary Janet Yellen, who convened a meeting with multilateral development banks, including the ADB and the World Bank, to discuss their efforts to boost climate financing in line with the 2015 Paris Agreement.
Businesshala first reported here in August that ADB is working with major financial firms to develop a mechanism to buy coal-fired power plants in Asia and retire them early to reduce their biggest source of carbon emissions. was working together.
Asakawa said the group has completed a preliminary feasibility study and is now starting a longer study of the concept in three target countries — Vietnam, the Philippines and Indonesia.
ADB and its partners, including British insurer Prudential, lenders Citi and HSBC and BlackRock Real Assets, aim to complete and launch a pilot investment fund in 2022 and its initial power plant purchase next year or early 2023. Is.
The concept is not included in ADB’s overall climate financing goals, as most of the money will come from donor sources, including private investors and philanthropists, he said.
“Even now, some philanthropists have already shown interest in investing in this new initiative. So we plan to launch the ETM at COP26 in Glasgow,” Asakawa said.
He said he expected to present the concept at COP26 with Indonesia’s Finance Minister Mr. Mulyani Indravati and Philippines Finance Minister Carlos Dominguez, two of the “pilot countries” in the project.
He added that there is interest in other developing countries in Asia to participate in coal retirement plans, with “more and more” countries likely to join the initiative later.