GREEN CLIMATE FUND ACCREDITS ADB TO TAP KEY FINANCE FOR ASIA-PACIFIC

GREEN CLIMATE FUND ACCREDITS ADB TO TAP KEY FINANCE FOR ASIA-PACIFIC

MANILA, PHILIPPINES (27 March 2015) — The Asian Development Bank (ADB) has become the first multilateral development bank accredited to receive financing from the Green Climate Fund (GCF) for projects to enhance climate change mitigation and adaptation in its developing member countries.

The Green Climate Fund was established in 2010 under the United Nations Framework Convention on Climate Change (UNFCCC) to serve as the central global investment vehicle for climate finance. It will help developing countries reduce greenhouse gas emissions and adapt to climate change. To date, 32 countries have pledged an initial $10.2 billion to the fund, including seven developing countries, with the largest contributions pledged by the US, Japan, the UK, France, and Germany.

“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. “Successful deployment of financing will help to create momentum for the climate agreement expected in December at the UNFCCC climate summit in Paris, France.”

ADB hopes to make its first formal submissions to the fund before the end of this year, said Mr. Nakao.

Asia is highly vulnerable to climate change given its many low-lying countries, reliance on agriculture, and rapid urbanization. The region’s adaptation costs are estimated at $70 billion-$100 billion annually through 2050, and failure to act could undo the poverty reduction and economic gains of recent decades. Moreover, Asia’s share of global greenhouse gas emissions could rise to 46% by 2035 from 37% in 2010 without aggressive efforts to promote low-carbon growth.