Multilaterals vow balanced net-zero emission

MANILA, Philippines — Multilateral agencies worldwide have committed to a balanced transition toward net-zero emission, especially in developing countries such as the Philippines.

Eight multilateral development banks (MDBs) recently issued five high-level principles for a just transition and how they will support economies toward net-zero.

These banks are African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank, European Investment Bank, Inter-American Development Bank, Islamic Development Bank and New Development Bank.

ADB and AIIB are among the Philippines’ major sources of loans, alongside the Washington-based World Bank.

ADB recently hiked its climate financing to $100 billion to help developing countries achieve their Paris Agreement commitments to chart a fair and equitable path to net-zero, climate-resilient development.

AIIB, on the other hand, estimates that cumulative climate finance approvals will amount to $50 billion by 2030.

Achieving a net-zero emission means that all man-made greenhouse gas emissions must be removed from the atmosphere through reduction measures.

This would aid in stabilizing global temperature. The Paris Agreement aims to keep the rise in global temperatures to well below 1.5 degrees Celsius.

The MDBs target to support countries to move away from the use of fossil fuels and toward low greenhouse gas emissions and climate resilience while supporting and protecting communities, industries and workers.

The MDBs will also work with national development banks and other financial institutions to develop financing and policy strategies supporting a just transition that promotes economic diversification and inclusion.

“These high-level principles for a just transition will help us support our developing member countries in the transformation from carbon-intensive economies to more renewable and sustainable ones,” director general of ADB’s Sustainable Development and Climate Change Department Bruno Carrasco said.

“The goal of ADB is to not only help our region move toward economies of net-zero emissions, but to ensure a just transition that shares the costs and benefits and provides protection and support for vulnerable communities, industries, and workers,” he said.

The principles for a just transition include delivering climate objectives while enabling socioeconomic outcomes and building progress on Paris Agreement goals and the Sustainable Development Goals, and support to move away from greenhouse gas emissions-intensive economic activities through financing, policy and advisory activities, and knowledge sharing.

It also covers mobilization of public and private finance and enhanced coordination, support for affected workers and communities to mitigate impacts and increase opportunities, and transparent and inclusive planning and monitoring with relevant stakeholders and affected groups.