Climate Change and ADB

ADB is helping developing countries shift to low-carbon growth and protect those most vulnerable against the expected impacts of climate change

Challenge	If temperatures, continue to rise climate change will have devastating impacts on people's lives, environments, and economic infrastructure. The poor are the most vulnerable. So how do we address the causes and consequences of climate change while ensuring continued poverty reduction and economic growth?
Strategy	ADB's long-term strategic framework 2008–2020 (Strategy 2020) makes climate change a part of our core operational areas.
Response	ADB is supporting a comprehensive program of climate change mitigation and adaptation measures, and mainstreaming climate change considerations into our operations.

Economic growth has lifted hundreds of millions out of poverty. But as Asia's economy has grown, so have pollution and resource degradation, putting enormous strains on the environment and the poor, who are the most vulnerable to declining environmental quality and the impacts of climate change. This could reverse hard-fought gains in poverty reduction.

The share of the Asia energy sector in global carbon dioxide emissions has more than tripled from about 8% in 1980 to 30% today. If current projections hold, Asia's contribution could rise to 43% by 2030, making it the region with the highest emissions.

Asia must continue to grow. Needed, however, are alternative approaches to economic growth that address environmental sustainability and climate change. Without a new course, the region's prospects for strong, continuous economic progress are in serious jeopardy.

Fundamental structural transformation of many sectors is required to ensure that future growth follows a low-carbon path. Much of the world's new energy and urban infrastructure over the next decades will be built in Asia—locking in the region's greenhouse gas emission pattern for another 30 to 50 years. So what happens in Asia holds the key to global efforts to address climate change.

Moving Asia to a low-carbon path and protecting against climate impacts

ADB is increasing efforts to help developing economies move onto low-carbon paths by improving their energy efficiency; expanding the use of clean energy sources; reducing fugitive greenhouse gas emissions, such as methane released from landfills; modernizing public transport systems; and arresting the assault of deforestation.

We are also helping countries adapt to the already unavoidable impacts of climate change—including those related to health. Work includes national and municipal planning, investments in adaptive measures, support for insurance and other risk-sharing instruments, the "climate-proofing" of projects, support for climate resilience building at the community level, and integration of climate change considerations into disaster risk management.

Prominent in ADB efforts are sustainable management of forests and other natural resources for provision of clean water supplies, protection of biological diversity, and sequestration of carbon from the atmosphere. For maximum impact, three priority areas are targeted for urgent action—energy, cities, and forests.

Mainstreaming climate change mitigation

ADB is advancing energy efficiency measures and use of low-carbon energy sources through an increasing number of programs and projects.

• Energy for All. Develops strategic approaches and partnerships to expand access by the poor to modern and clean forms of energy.
• Energy Efficiency Initiative. Massively scales up ADB's clean energy investments, with investments reaching more than $1.6 billion in 2008.
• Carbon Market Initiative. Mobilized over $150 million to cofinance Clean Development Mechanism projects. Also provides technical and marketing support for selling certified emission reductions globally, and—through ADB's Future Carbon Fund—will provide $100 million in upfront financing to projects extending beyond the current Kyoto Protocol commitment period.
• Sustainable Transport Initiative. Helps ensure future transport sector projects incorporate expected effects of climate change in decision-making processes. Goals call for synergistic land use and transport planning designs, plus sustainable and integrated transport solutions, including more public and nonmotorized transports.
• Cities Development Initiative for Asia. Works with cities, development partners, and the private sector to implement needed investments for sustainable urban development, including those in public transport, solid waste methane capture, energy efficiency in buildings, and alternate energy sources.
• Clean Air Initiative for Asian Cities. Promotes reduction in vehicle emissions through improved fuel quality, vehicle maintenance, emission control technology, alternative fuels, promotion of public transport, and better traffic management, and other sustainable initiatives.
• Forest conservation initiatives. Support protection and sustainable use of forests for the benefit of communities and regional development while capturing benefits from carbon sequestration and biodiversity conservation.
• Private sector engagement. Supports direct investments by the private sector in clean energy projects and strategic investments in equity funds focusing on clean energy.
• Corporate footprint. Managing ADB's facilities to minimize environmental impacts. We are the only multilateral development bank to achieve the globally recognized ISO-14001 certification for internal environmental management systems.

Mainstreaming climate change adaptation

ADB is addressing risks derived from climate change vulnerability in development strategies and actions to improve resilience of the poor and most vulnerable.

• Portfolio at-risk assessment. Improves understanding of climate risks and how best to respond to them through analysis of the ADB active loan portfolio.
• Project screening. Improves understanding of project-level risks associated with climate change impacts and thus supports mainstreaming of climate adaptation in ADB operations through, for example, climate-proofing.
• Country assessment. Provides data and analyses to create adaptation road maps and analyze gaps between country needs and current lending practices.
• Climate proofing. Helps ensure development projects are neither vulnerable to climate change nor increase exposure to climate change impacts.
• Increasing sector resilience. Provides policy and technical guidance to address climate change and variability issues in agriculture, infrastructure, transport, health, water, and other sectors.
• Addressing social dimensions. Improves understanding of social dimensions such as migration, governance, and the role of women and resilience building at the community level.

Working with partners in crosscutting activities

ADB is finalizing regional climate change implementation plans for incorporation into country partnership strategies. With universities, specialized international agencies, and others we are conducting studies in critical areas such as climate change and energy, and building climate resilience in the agriculture sector, climate change and migration, and the economics of climate change.

We have established regional knowledge hubs for climate change efforts at several leading academic institutions in the region. And we are engaging with the international community through knowledge sharing and outreach, plus building capacities of ADB and our developing member countries through training, workshops, and assistance programs.

We are also strengthening collaboration with development partners to mobilize further resources, for example, through the recently established Climate Investment Funds, the Clean Energy Financing Partnership Facility, the Climate Change Fund, the Global Environment Facility, and the Water Financing Partnership Facility.

Going forward. Solutions to climate change hinge largely on how quickly the rapidly growing economies of the region can move to a low-carbon development and climate resilient path. ADB works and welcomes partnerships with developed and developing nations and leading knowledge institutions in the region to meet the challenge.