Asian Development Bank launches $40m climate fund

The Asian Development Bank (ADB) yesterday announced the launch of a new climate-change investment fund designed to help curb carbon emissions and finance the construction of climate-resilient infrastructure across the region.

The bank said it would provide an initial $40m (£20.3m) for investment in climate change-related projects and urged other countries, development groups and private investors to contribute to the new fund.

Werner Liepach, principal director of ADB's office of cofinancing operations, said the fund would target developing countries across Asia and the Pacific and would provide "grant financing for technical assistance, investment projects, research and other activities". He added that the bank would "welcome interested parties to participate in the fund".

The bank said the fund would differ from current clean tech and technology transfers by focusing on the gamut of climate-change issues, including many of the adaptation measures asian countries could be required to take to mitigate climate-change risks.

"In addition to supporting transition to low-carbon economies and establishing climate-resilient infrastructure, this fund will allow ADB to address the cross-cutting social vulnerability issues related to climate change such as changes in livelihood, resettlement and health impacts," said WooChong Um, director of ADB’s energy, transport and water division.

The ADB warned that a major adaptation programme will be required right across Asia-Pacific if the region is to avoid the worst effects of climate change. According to projections from the bank, crop yields from central and southern Asia could fall by half by 2050 as a result of global warming, while many of the regions' largest cities – including Bangkok, Jakarta, Karachi, Manila, Mumbai and Shanghai – could all be vulnerable to coastal flooding. Low-lying countries such as Bangladesh and many Pacific islands could also be at risk of inundation if climate change is not curbed.

Moreover, the region's rapid economic expansion means it is facing growing political pressure to cut carbon emissions. "Asian developing countries are now the fastest-growing source of new greenhouse gas emissions and they will soon be the largest absolute source," admitted Um. "This new fund will help us pool resources from around the world to invest here in Asia to help deal with this problem."