The lender will boost its climate financing goals and reduce carbon emissions in Asia by retiring coal-fired power plants
According to Channel News Asia, The Asian Development Bank (ADB) announced that it will increase its climate financing goals by USD20 billion to USD100 billion for the 2019-2030 period and aim to withdraw coal-fired power plants, said ADB President Masatsugu Asakawa.
“The fight against climate change will be won or lost in Asia and the Pacific, and we are committed to serving as a climate bank and a long-term climate partner for our region,” Asakawa said.
The additional USD20 billion in financing support will not only contribute to climate mitigation efforts like low-carbon energy sources, but also provide support in climate adaptation projects, and private sector projects.
Asakawa added that ADB now intends for USD66 billion in financing for climate mitigation financing through 2030, counting for new energy storage, energy efficiency, and low-carbon transportation investments.
Moreover, the lender will plan for climate adaptation financing for USD34 billion, including urban, agriculture, and water adaptation projects.
The bank also plans to boost its private sector operations to draw in more private sector capital to finance new climate technologies and innovations.
At the COP26 climate conference in Scotland next month, the lender will aim to introduce its concept for withdrawing coal-fired power plants, on top of boosting its financing goals. Reuters first reported in August that ADB was working with major financial firms to buy up these plants in Asia and retire them to shrink carbon emissions.
The initial feasibility study has been completed said Asakawa, and a longer study of the concept will be conducted in three target countries, the Philippines, Vietnam, and Indonesia.
ADB and its partners, namely British insurer Prudential, lenders Citi and HSBC, and BlackRock Real Assets are aiming to complete and launch a pilot investment fund in 2022 and make its initial power plant purchase next year or early 2023.
“Even now, some philanthropists have already shown interest in investing in this new initiative. So we plan to launch the ETM at COP26 in Glasgow,” Asakawa said.
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