Energy accounts 44% of ADB climate finance in 2020

Total climate finance in 2020 reached $5.3 billion consisting of ADB resources and co-financing, falling from $7 billion in 2019. The share of climate investments in energy across energy, multisector and other sector’s projects is 44%. A large part of these investments or 96% came from mitigation projects committed in 2020. Adaptation finance in energy accounted for 4%. Apart from having the biggest share in the total climate finance committed in 2020, climate finance in energy also increased from $1.7 billion in 2019 to $2.3 billion in 2020.

Which financing sources matter for private investment in renewable energy in Asia?

ADBI’s Dina Azhgaliyeva, John Beirne, and Ranjeeta Mishra share their views on how best to fill the financing gap in renewable energy investments in the region in this blog. They assessed which among the different types of financing: asset finance, corporate research and development (R&D), public markets, and venture capital were proven to be the more effective drivers of private investment in renewable energy.

New Trust Fund under CEFPF to Accelerate Artificial Intelligence and Digitalization Technologies for Clean Energy

The ADB and the Government of the United Kingdom, acting through the Department of Business, Energy and Industrial Strategy, signed an agreement to establish the Artificial Intelligence and Digitalization Innovation Fund (AIDIF) under the CEFPF with an initial contribution of £10 million.

MDB climate finance reached $61 billion in 2019

Based on the 2019 Joint Report on Multilateral Development Banks’ Climate Finance, seven of the world’s largest multilateral development banks (MDBs) including ADB, were able to mobilize $61.6 billion in 2019, with $41.5 billion (67%) for low- and middle-income economies.Of the total amount, 76% or around $46.6 billion was used to finance climate change mitigation interventions that aim to reduce harmful greenhouse gas emissions and slow down global warming.About $15 billion, or 24%, was invested in adaptation activities to help countries improve their resilience to the increasing risk

Clean Energy Financing Partnership Facility Update

The Philippines remains acutely vulnerable to climate change and challenges for financing climate actions are made worse by the COVID-19 pandemic. In 2021, the Philippine government announced its new climate targets in the Nationally Determined Contribution under the Paris Agreement, committing to 75% reductions in GHG emissions from 2020 to 2030. This is the most ambitious target among the ASEAN countries.

CEFPF Annual Consultation Meeting Held

The 14th Annual Consultation Meeting (ACM) for the Clean Energy Financing Partnership Facility (CEFPF) was held on 17 November 2021. The Chief of Energy Sector Group Priyantha Wijayatunga welcomed representatives from the Governments of Australia, Japan, Norway, Spain, Sweden and the United Kingdom. ADB informed the partners on the progress and achievements of the CEFPF, update on the ADB Clean Energy Investment Program and the approval of the 2021 Energy Policy.

ADO 2021 emphasizes green and inclusive financing in building back better and sustainably

On 28 April, the Asian Development Outlook 2021 was released. The report stresses the importance of green and social finance in ensuring inclusive, resilient and sustainable recovery for Asia and the Pacific Region from the coronavirus pandemic.ADO 2021 outlined the role of different players in this green recovery building on the momentum already started by green and social finance in recent years particularly in the private sector. Changing investor preferences toward sustainable development goals has played a big role.

ADB Ventures raising funds for new debt fund

Building on the momentum and success from the first inaugural equity fund, ADB Ventures is setting up a second investment fund to address ongoing market financing gaps to support early-stage and growth companies in scaling up their operations. According to the ADB Ventures newsletter, the new fund will offer debt-based products to enhance the operations of climate-focused companies.ADB Ventures is currently raising funds and aims to achieve its first close by 2022.

ADB Raises 2019–2030 Climate Finance Ambition to $100 Billion

President Masa on 13 October announced the increase in ADB climate finance target from $80 billion to $100 billion from 2019 to 2030. About $17 billion in climate finance is expected to be registered for 2019 to 2021.The additional $20 billion will provide support for the climate agenda in five main areas:1. First, new avenues for climate mitigation, including energy storage, energy efficiency, and low-carbon transport. ADB expects its cumulative climate mitigation finance to reach $66 billion.2. Second, a scale-up of transformative adaptation projects.