ADB Support for Climate Change

From 2011 to 2020 ADB approved about $41.6 billion in climate financing. ADB's own resources provided $36.2 billion while external resources contributed almost $5.4 billion. ADB supports green growth in Asia and the Pacific through financing and innovative technologies. Through mechanisms such as the Climate Investment Funds, multilateral development banks have mobilized billions for climate action in developing countries. ADB is an accredited entity of the Green Climate Fund and is accessing resources from the fund to support climate change actions in the Asia Pacific region.

ADB seeks to help its member countries become more resilient to the effects of disasters triggered by natural hazards, while it continues to provide assistance to support post-disaster recovery needs. Between August 1987 and December 2020, ADB approved $11.8 billion for 256 disaster risk management projects that directly reduced disaster risks, strengthened financial preparedness, and supported post-disaster recovery; while a further 657 projects incorporated measures to strengthen disaster resilience in their design. These have included flood control and integrated water resource management projects, as well as programs supporting financial preparedness for disasters in ADB’s developing member countries.

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Climate Change and Disaster Risk Management Issues

Issues and topics related to climate change and disaster risk management that ADB has identified as priorities in developing Asia and the Pacific.

Climate Financing

Green growth has great potential to provide a clear and focused policy agenda to pursue sustainable economic growth, while improving resilience to climate change and other shocks, and preventing environmental degradation, biodiversity loss, and unsustainable natural resource use.

Necessary investments in all developing countries for mitigation are estimated to be between $140 billion to $175 billion per year by 2030, while adaptation cost estimates for Asia and the Pacific are in the order of $40 billion per year between now and 2050.

Through mechanisms such as the Climate Investment Funds, multilateral development banks have mobilized $6.5 billion for climate action in developing countries, with $2.5 billion earmarked for Asia and the Pacific. For the massive financing required to combat climate change, the key will be using limited public sector funds to leverage significant amounts of private capital, and to get the right technologies into the hands of as many partners as possible, as quickly as possible.

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Integrated Disaster Risk Management

ADB helps its member countries become more resilient to disasters by financing flood control and water resource management projects, as well as innovative ways of financing disaster risk management.

ADB helps its member countries become more resilient to disasters by financing flood control and water resource management projects, as well as innovative ways of financing disaster risk management.

Investments in disaster resilience can reduce losses, contributing to sustained economic growth, poverty reduction, and enhanced natural resources management. These investments have the most far-reaching effect if they are undertaken in the context of wider development and are carefully integrated into the development process. Successful investment in resilience also requires active cooperation between governments, the private sector, civil society, and the international community.

Clean Energy

Energy efficiency is emerging as one of the key options that can help nations in Asia and the Pacific meet the region's growing energy needs in a clean and effective way.

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Green Cities

Cities in Asia are growing at an unprecedented pace, with 44 million added to city populations every year. The resulting congestion, waste, pollution, and associated health impacts remain key challenges in sustaining urban development.

ADB supports livable, green cities through financing water supply, waste management, clean transport, urban planning and clean energy projects.

Transport is the fastest growing source of new greenhouse gas (GHG) emissions. Unchecked practices in transportation and urban growth lead to pollution, decreased quality of life and increased demand for energy. Shifting transport and urban development to a more sustainable path will lower environmental costs and reduce reliance on fossil fuels.

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Lands and Forests

Lands and forests are being conserved to provide sustainable livelihood for local populations and a safe haven for thousands of animal and plant species.

ADB is working across Asia and the pacific to support sustainable forest management and conservation efforts, as well as agricultural land use improvements, to promote carbon conservation.

Approaches to land and forest management should support local livelihoods, strengthen resilience to climate change, maintain clean water supplies, and protect biological diversity.

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Resilient Development

The challenge facing Asia and the Pacific is to create another kind of resilience—disaster resilience—at the national and regional level.

ADB is promoting adaptation to climate change in the region by investing in water supply, sanitation, irrigation, flood control, transport and energy infrastructure that builds resilience to current and future climate variability.

Investment in sectors such as health and education will also improve countries’ capacity to adapt. Helping vulnerable communities and sectors to cope with climate variability strengthens their resilience to the long-term and uncertain impacts of climate change.

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Strengthening Policies

Green growth has great potential to provide a clear and focused policy agenda to pursue sustainable economic growth, while improving resilience to climate change and other shocks, and preventing environmental degradation, biodiversity loss, and unsustainable natural resource use.

Many countries have pledged to reduce the levels of greenhouse gas (GHG) emissions in line with nationally appropriate mitigation actions. In addition, developing countries in the region have also prepared national adaptation programs of action.

An enormous amount of policy, governance, and institutional work will be needed to mainstream these initial plans and pledges into the development process and translate them into action.

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Post-Disaster Response, Rehabilitation, and Reconstruction

Through its emergency assistance loan program, ADB provides fast-tracked support to help members rebuild high-priority physical assets and restore economic, social and governance activities in the aftermath of disasters.

ADB seeks to help its member countries become more resilient to the effects of disasters, while it continues to provide assistance to support post-disaster recovery needs. Between August 1987 and December 2018, ADB approved $10.3 billion for 222 disaster risk management projects that directly reduced disaster risks, strengthened financial preparedness, and supported post-disaster recovery; while a further 442 projects incorporated measures to strengthen disaster resilience in their design. These have included flood control and integrated water resource management projects, as well as programs supporting financial preparedness for disasters in ADB’s developing member countries. ADB’s quick response was also seen in the aftermath of disasters such as the Sulawesi earthquake and tsunami in Indonesia, a tropical cyclone in Tonga, an earthquake in Papua New Guinea, and increased volcanic activity of Mt. Manaro in Vanuatu, which all happened in 2018.

Through its emergency assistance loan program, ADB provides fast-tracked support to help members rebuild high-priority physical assets and restore economic, social and governance activities in the aftermath of disasters.

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Green, Inclusive and Resilient Recovery

A green, inclusive and resilient recovery refers to a package of stimulus policies and funding that supports development that is nature-positive, socially inclusive, builds long-term resilience and is aligned with the Paris Agreement on Climate Change, the Sendai Framework for Disaster Risk Reduction, the Sustainable Development Goals and the Convention on Biological Diversity.

Together, the package of measures should aim to provide assistance to businesses and people affected by Covid-19 and stimulate economic activity, while laying the foundation for long-term structural reforms and a transformative shift towards resilient, net-zero greenhouse gas emissions and forward-looking societies.