ADB allots $665 million for ASEAN green recovery

MANILA, Philippines — The Philippines and the rest of Southeast Asia can tap into a $665-million (P33.55-billion) Asian Development Bank-managed fund to finance green recovery in the region, the Manila-based multilateral said.

Four partners have pledged a total of $665 million for the ASEAN Catalytic Green Finance Facility (ACGF), which was established by the ASEAN Infrastructure Fund and is being managed by ADB.

The additional resources were committed by South Korea-based Green Climate Fund ($300 million), Italian investment bank Cassa Depositi e Prestiti ($155 million), UK government ($151 million), and the European Union ($58 million).

The new funding will add to the $1.4 billion in co-financing commitments pledged to the ACGF since 2019, bringing total pledges to the facility to $2 billion.

The platform aims to mobilize an additional $7 billion for low-carbon and climate-resilient infrastructure projects in Southeast Asia and accelerate the region’s recovery from the pandemic.

The ACGF is owned by the finance ministries of the 10 ASEAN member-countries and ADB.

The Philippines and the rest of Southeast Asia can use the facility to access finance and knowledge for sovereign green infrastructure projects on sustainable transport, clean energy, and resilient water systems.

All projects supported by the program will incorporate innovative green finance instruments and approaches.

ADB president Masatsugu Asakawa said the platform would help accelerate the flow of investments to support climate-resilient, environmentally sustainable infrastructure projects in Southeast Asia and boost sustainable and equitable development.

The UK, for its part, said the funding would help deliver clean, honest and reliable infrastructure into countries that urgently need it, drawing on the European nation’s expertise on green technologies and creating jobs.

The Italian bank, on the other hand, maintained that it is ready to play an active role in financing sustainable and inclusive infrastructure by promoting constructive partnerships to financing recovery in Southeast Asia.

Further, the ACGF aims to help ASEAN countries bridge the gap in financing green infrastructure, with the region’s annual investment needs estimated at $210 billion (P10.2 trillion) even before the pandemic.

The projects are expected to reduce carbon dioxide emissions by 119 ?million metric 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.