Four partners have come together to commit $665 million to a forum managed by the Asian Development Bank (ADB), with the aim of raising $7 billion for climate-resilient and low-carbon infrastructure projects in Southeast Asia and accelerate the region's recovery from the coronavirus disease (COVID-19).
This funding, announced at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in Glasgow, includes £110 million (US$151 million) from the Government. Government of the United Kingdom, 132 million euros ($155 million) from the Italian state investment bank Cassa Depositi e Prestiti (CDP), 50 million euros from the European Union, and $300 million from the Fund Green Climate. These partnerships will be part of the new ASEAN Green Recovery Forum to support the Association of Southeast Asian Nations ( ACGF ) Catalytic Green Finance Fund , established by the ASEAN Infrastructure Fund and managed by ADB.
ADB President Masatsugu Asakawa, who attended the launch event of the forum with ministers and senior officials from ASEAN countries and partner countries, commented: “ASEAN countries are having the opportunity. rare opportunity to build a green and inclusive future after the COVID-19 pandemic. The ASEAN Green Recovery Forum will help accelerate investment flows to support climate-resilient and environmentally sustainable infrastructure projects in Southeast Asia, as well as promote equitable and sustainable development. steady".
This new funding will add to the $1.4 billion co-financing budget already committed to ACGF since 2019, bringing the total commitment for the fund to $2 billion. Initial funding partners for ACGF include ADB, the French Development Agency (AFD), the European Investment Bank, the German state development bank KfW, and the Korean government. European Commission International Partner General Manager Koen Doens, Green Climate Fund CEO Yannick Glemarec and AFD General Manager Remy Rioux also spoke at the launch.
UK Foreign Secretary Elizabeth Truss said: “This year, the UK became ASEAN's first new Dialogue Partner in 25 years. We are now working together to build stronger economic and investment relationships and tackle climate change. The UK's £110 million grant to the UK-ASEAN Catalyst Green Finance Trust will help develop clean, honest and reliable infrastructure in countries in need, based on expertise. UK expertise in green technology and job creation across the UK.”
The COVID-19 pandemic has had significant economic, health and social impacts in Southeast Asia. This forum will provide financing and technical support to reduce investment risk and catalyze public and private capital to finance green infrastructure projects, helping to create jobs and promote growth. chief. It will also support the efforts of developing member states in the ASEAN region to achieve the climate targets under the Paris Agreement, and help them strengthen green capital markets, for example by opening up widely issued green bonds and climate bonds.
CDP General Director Dario Scannapieco commented: “We must not stray away from our commitments under the Paris Agreement and the Sustainable Development Goals in the process of rebuilding the economy. CDP stands ready to play an active role in financing inclusive and sustainable infrastructure by fostering constructive partnerships, such as our support for ACGF, to fund for a green and sustainable economic recovery in Southeast Asia, as well as working with other national development banks to address challenges for both this generation and the next.”
The ASEAN Green Recovery Forum is part of ADB's commitment to increase its cumulative climate financing ambitions for 2019-2030 to $100 billion, while ensuring that at least 75% of projects will address climate change mitigation and adaptation by 2030.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, including 49 regional members.