With Asia and the Pacific responsible for more than half of all global carbon emissions, the key to tackling climate change is transitioning the region to clean energy. ADB invested more than $25 billion in clean energy through sovereign and non-sovereign initiatives from 2008 to 2020. Mainstreaming affordable and reliable clean energy in developing Asia is critical for sustainable development and regional energy security, as well as addressing climate change. A sustainable and secure energy supply remains essential, as more than 350 million people still lack access to electricity in the region, with several countries still heavily dependent on imported fossil fuels.

In October 2021, ADB committed to elevating its ambition to $100 billion in cumulative climate financing from its own resources to its DMCs for the period 2019-2030. Investment in all developing countries for climate mitigation is estimated to be between $140 billion to $175 billion per year by 2030. Climate 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 $7.0 billion for climate action in developing countries, with more than $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.

Cities in Asia are growing at an unprecedented pace, with 44 million people added to urban populations every year. The resulting congestion, waste, pollution, and associated health impacts remain key challenges in sustaining urban development. ADB supports liveable, green cities through financing water supply, waste management, clean transport, urban planning, and clean energy projects. Transport is the fastest growing source of new GHG emissions in the region. Shifting transport and urban development to a greener, more sustainable model will significantly reduce climate change.

ADB helps its member countries to become more resilient to disasters by financing disaster risk management in areas such as flood control, early warning systems, nature-based solutions, integrated water resource management, resilient infrastructure, and disaster risk financing. Between January 2017 and December 2021, ADB approved $2.08 billion for 32 projects that directly reduced disaster risks, improved institutional and community preparedness, and strengthened financial preparedness for disasters. A further 351 projects incorporated measures to strengthen disaster resilience in their design. Investment in disaster resilience can contribute to sustained economic growth, poverty reduction, and enhanced natural resource management. These investments have the most far-reaching effect if these 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.

ADB is promoting disaster risk reduction and climate change adaptation in the region by investing in water supply, sanitation, irrigation, flood control, transport and energy infrastructure that withstands and builds resilience to disasters and climate change. Climate adaptation cost estimates for Asia and the Pacific are in the order of $40 billion per year between now and 2050. Investment in health and education will also improve countries’ capacity to adapt. Helping vulnerable communities and sectors cope with disasters and climate change strengthens their resilience and facilitates sustainable development. ADB is working with partners to roll out an ambitious community resilience partnership program across the region.

Through technical assistance, grants and emergency assistance loans, ADB provides timely support to help its developing member countries respond to urgent life-saving requirements, rebuild high-priority infrastructure and physical assets, and restore governance and economies following disasters and emergencies. Between January 2017 and December 2021, ADB approved $818.35 million in financing for 15 post-disaster assistance projects following disasters triggered by natural hazards. ADB’s recent response to disasters in the region have included the Sulawesi earthquake and tsunami in Indonesia, an earthquake in Papua New Guinea, volcanic activities in Vanuatu and Tonga, and tropical cyclones in the Pacific. See Asia Pacific Disaster Response Fund (APDRF).

ADB works to assist member countries to formulate and mainstream climate adaption and resilience policies. The bank produces regular Climate Risk Country Profiles that outline changes in key climate parameters, as well as the impact of these changes on communities, livelihoods, and economies. The aim of the series is to provide user friendly technical resources to facilitate country diagnostics, policy dialogue, and strategic planning. ADB’s Climate Change Operational Framework 2017-2030 provides a framework for DMCs to enable the implementation of their international commitments to address climate change, while pursuing sustainable development.

ADB remains steadfast in supporting its developing member countries (DMCs) utilize carbon pricing instruments as an integral part of the broader policy architecture to help achieve their nationally determined contribution (NDC) and net-zero targets. ADB has a long-standing engagement with carbon markets, mobilizing carbon finance and providing technical and capacity-building support through the Asia Pacific Carbon Fund, Future Carbon Fund, and the Japan Fund for the Joint Crediting Mechanism. ADB has been providing technical support to enhance the capacity of its DMCs through its Technical Support Facility as well as the Article 6 Support Facility. ADB will continue to take a holistic approach to carbon pricing and markets by mobilizing carbon finance, incentivizing investments in low carbon technologies, and providing technical and capacity building support to its DMCs.

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. Land and forests need to be conserved to provide proper livelihoods for local populations and a safe and sustainable haven for thousands of animal and plant species. ADB’s approach to land and forest management helps support local livelihoods, strengthens resilience to climate change, maintains clean water, and protects biodiversity.