Promoting Environmentally Sound Development

ADB promotes environmentally sound development in the Asia and Pacific region. It ensures early on in the project cycle that the projects and programs it finances are environmentally sound.

Since the Earth Summit in Rio de Janeiro in 1992, ADB has been aggressively responding to the escalating demand from its member countries for assistance in environmental management.

ADB's decision in 1999 to make poverty reduction its overarching objective strengthened its environmental agenda; moreover it shifted its environmental program focus to support this objective.

Why does ADB Focus on Environment?

• Asia's population may rise by 50 percent within a generation. More pollution will be generated.

• Without immediate and firm action, the environmental outlook is grim for the region.

• More species and ecologically sensitive areas will be lost in the coming years as the rural poor, as well as the rich and powerful, continue to exploit natural resources.

• Development will be short-lived if it is not based on sustainable use of natural resources.

The current environmental crisis

• In many Asian cities, children ingest brain-damaging lead from dirty smoke spewed out by vehicles.

• Noise, air, and water pollution, congestion, and poor sanitary services lead to poor health in urban areas.

• Traffic in Asia's megacities not only contributes to air pollution; it also results in millions of dollars lost in work time.

• The rate of urban poverty will climb as people from the provinces continue to head for the cities.

• In rural areas, dependence of the poor for a living on pasture, fish, coastal resources, and forests creates undue pressure on what are already degraded natural resources.

• Loss of biodiversity means loss of economic opportunities.

How ADB is helping

• ADB's lending for environmental activities in 2000 totaled $1.2 billion or almost 23 percent of the total approved loan amount, average of 13 percent per year over the past five years.

• Environmental considerations are now mainstreamed into all stages of the project cycle.

• ADB supports the environmental capacity building efforts of individual developing member countries.

• ADB promotes projects and programs designed to protect, rehabilitate, and enhance the environment in member countries.

• ADB trains its staff and member country counterparts in the environmental aspects of economic development.

• ADB promotes regional cooperation.

Examples of ADB's Environmental Activities

• In the People's Republic of China, ADB has financed three wind farms with a total power generation capacity of 78 megawatts. This project will eliminate future emissions of sulfur, nitrogen oxides, and carbon dioxide.

• Resource management in forestry and water resources have been supported in two projects in Sri Lanka. Another project aims at protected area management and wildlife conservation.

• Developing the institutional capacity of farmers for sustainable management of canals has been funded by ADB in Pakistan.

• The improvement of water supply and sewerage systems in Marshall Islands.

• ADB joins international efforts in the areas of climate change, biodiversity conservation, and protection of international waters.

• ADB assists countries in Northeast Asia to address the issue of acid rain.

• ADB plays a key role in Southeast Asia to find preventive solutions to forest fires.

• In the Greater Mekong subregion ADB assists effective management of the environment and the shared natural resources in the region.

Asian Environmental Outlook

• The first Asian Environment Outlook 2001 was published in mid 2001. It reviews economic development policies that provide a sound basis for improvement of environmental performance and reduction of poverty in Asia.