Green Climate Fund allots $300 million to ADB for green recovery program

Asian Development Bank (ADB)
BW FILE PHOTO

THE Green Climate Fund (GCF) has allocated $300 million for Asian Development Banks (ADB) projects which aim to build climate resilience and promote sustainable economic development.

In a statement Monday, the ADB said that funds from the GCF will finance its first green recovery program.

“The ASEAN Catalytic Green Finance Facility (ACGF) Green Recovery Program aims to leverage GCF and ADB funds to catalyze financing from development partners and private capital sources to support more than $4 billion worth of green infrastructure projects across the region,” the ADB said.

Projects supported by the program will incorporate green finance instruments and approaches.

The bank said that it approved the funding requirements for the Green Recovery Program on Friday at a board meeting.

“The program will help Southeast Asian countries design green stimulus packages and projects that will create climate-friendly jobs, boost economic growth, and help countries fulfill their pledges under the Paris Agreement to reduce greenhouse gas emissions,” ADB Vice-President Ahmed M. Saeed was quoted as saying.

He added that the ACFG Green Recovery Program is designed to “kickstart low-emissions investments during the first few years of recovering from the coronavirus disease.”

The program will provide technical assistance and concessional loans to around 20 green infrastructure projects in Southeast Asia.

“Over a 30-year period, the projects are expected to reduce carbon dioxide emissions by 119 million tons and create 340,000 green jobs in key sectors such as sustainable transport, renewable energy and energy efficiency systems, as well as low-carbon agriculture and natural resources,” the ADB said.

Headquartered in South Korea, the GCF is a global fund created to help developing countries address climate change.

The ADB has set a target of $80 billion worth of climate financing by 2030. Chief of Energy Sector Group Yongping Zhai estimated the bank’s clean energy financing to be worth $23 billion between 2009 and 2019. — Angelica Y. Yang