ADB Joins MDBs to Support Just Transition Toward Net-Zero Economies
MANILA, PHILIPPINES (29 October 2021) — The Asian Development Bank (ADB) today joined with other multilateral development banks (MDBs) in committing to a just transition that supports developing member countries (DMCs) to move toward net-zero emission economies.
The MDBs released a joint statement outlining their commitment to five High-Level Principles for a just transition. The statement outlines how the MDBs will support countries to move away from the use of fossil fuels and toward low greenhouse gas (GHG) emissions and climate resilience in a way that shares the costs and benefits, while supporting and protecting communities, industries, and workers. The MDBs will also work with national development banks and other financial institutions to develop financing and policy strategies supporting a just transition that promotes economic diversification and inclusion.
A just transition is part of the 2015 Paris Agreement which aims to keep the rise in global temperatures to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.
“These High-Level Principles for a just transition will help us support our developing member countries in the transformation from carbon-intensive economies to more renewable and sustainable ones,” said ADB Director General of Sustainable Development and Climate Change Department Bruno Carrasco. “The battle against climate change will be won or lost in Asia and the Pacific. The goal of ADB is to not only help our region move toward economies of net-zero emissions, but to ensure a just transition that shares the costs and benefits and provides protection and support for vulnerable communities, industries, and workers.”
The five principles for a just transition are: delivering climate objectives while enabling socioeconomic outcomes and building progress on Paris Agreement goals and the Sustainable Development Goals; support to move away from GHG emissions-intensive economic activities through financing, policy and advisory activities, and knowledge sharing; mobilization of public and private finance and enhanced coordination; support for affected workers and communities to mitigate impacts and increase opportunities; and transparent and inclusive planning and monitoring with relevant stakeholder and affected groups.
Action on a just transition will deepen ADB’s commitment to action on climate change, a key plank of ADB’s Strategy 2030. ADB recently announced it is raising its ambition for 2019–2030 cumulative climate financing to $100 billion, which will help DMCs achieve, and even increase, their Paris Agreement commitments to chart a fair and equitable path to net-zero, climate-resilient development.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source URL: https://www.adb.org/news/adb-joins-mdbs-support-just-transition-toward-net-zero-economies