© Reuters. FILE PHOTO – Masatsugu Andakawa (Asian Development Bank President) speaks with Reuters, Tokyo, Japan on November 29, 2019. Photo taken November 29, 2019. REUTERS/Kim Kyung-Hoon
WASHINGTON, (Reuters) – The chief of the Asian Development Bank said Tuesday that the bank will increase its climate financing goals to $20 billion. This is in addition to a target of $100 billion by 2023. It also plans to present its plan to retire coal-fired power stations at next month’s COP26 climate conference.
Masatsugu Aakawa (ADB President) revealed these plans to Reuters in an interview. The plan will increase the $80 million goal ADB set for climate financing in Asia in 2018, which was previously announced for 2018.
Asakawa declared, “The battle against climate change is won or lost in Asia-Pacific.”
Additional $20 billion of financing support will be used to support climate mitigation efforts, including low-carbon energy sources and climate adaptation projects.
Asakawa stated that ADB plans to finance climate mitigation financing with $66 billion by 2030. This includes new energy storage and energy efficiency, as well as low-carbon transport investments. According to the Manila-based lender, $34 Billion will be earmarked for climate adaptation financing. This includes projects related to agriculture and urban adaptation.
Asakawa stated that the bank plans to increase its private sector operations in order to attract private sector capital for new climate technology and innovation financing. The bank will use $12 billion of its balance sheet to attract as much as $30 billion private capital due to an increased need.
Janet Yellen from the U.S. Treasury presented the plans to the meeting. Janet had been invited by multilateral banks to talk about their efforts to improve climate financing, in keeping with the 2015 Paris Agreement.
Reuters first reported https://www.reuters.com/world/uk/exclusive-citi-hsbc-prudential-hatch-plan-asian-coal-fired-closures-sources-2021-08-03 in August that ADB was working with major financial firms to develop a mechanism to buy up coal-fired power plants in Asia and retire them early to shrink the biggest source of carbon emissions.
Asakawa stated that the group completed a feasibility study, and now is pursuing a deeper study in the three countries targeted — Vietnam and the Philippines.
ADB, its partners including British insurer Prudential, lenders Citi, HSBC, and BlackRock (NYSE 🙂 Real Assets are aiming for the launch of a pilot fund to invest in and purchase its first power plant next year, or as early as 2023.
He said that the ADB does not include this concept in its overall climate financing goals. The majority of money will be from private investors or donor sources including philanthropists.
Some philanthropists already show interest in investing in this initiative, Asakawa stated. Asakawa explained that we intend to launch the ETM in Glasgow at COP26.
He stated that he hoped the idea would be presented at COP26 by Sri Mulyani, the Indonesian finance minister and Carlos Dominguez from the Philippines. These are two “pilot” countries in the project.
He said that other countries from Asia are interested in participating in the retirement plans for coal, and “more” countries will likely join this initiative in the future.
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