The Asian Development Bank (ADB) has been accredited to receive climate finance under the Green Climate Fund (GCF). It is the first time a multilateral development bank has been approved to receive funding under the GCF.
 
The GCF is currently the most significant source of global climate finance and is expected to be the principal mechanism for channelling the US$ 100 billion promised by developed countries in climate finance assistance.
 
ADB will use the funding to build climate resilience among its developing member countries. The GCF is likely to begin disbursing funds before the UNFCCC climate talks in Paris, due to take place at the beginning of December this year.
 
The funds will be welcome for Asian countries, many of which are some of the most vulnerable places on earth to the impacts of climate change. ADB estimates that climate adaptation costs in the region will be around US$70-100 billion each year to 2050.
 
“Combining the Green Climate Fund’s concessional finances with ADB’s financing, knowledge, and regional experience will boost much-needed climate change investments in Asia and the Pacific,” said ADB president Takehiko Nakao. The Green Climate Fund will allocate its resources equally to adaptation and mitigation efforts. Half of the adaptation funds are to be allocated to small island developing countries, least developed countries, and African states, with the rest going to other developing countries. 
 
Helping the region cope with climate change is a strategic priority for ADB. In 2014, ADB approved climate financing of just over $3 billion – about 75% for climate change mitigation and 25% for adaptation. 
 
ADB also manages $2.6 billion through bilateral and multi-donor funds, including climate investment funds, to support areas including clean energy, integrated disaster risk management, and urban climate resilience. Earlier this month, ADB raised $500 million from its first Green Bond to finance climate mitigation and adaptation projects.
 
Read more HERE
 
 
0 comment(s)

Please Login/Register to write comment