ADB, EU investment bank boost co-financing program

MANILA, Philippines — The Asian Development Bank (ADB) and the investment bank of the European Union are strengthening their co-financing for projects focusing on climate action and sustainability in the Asia Pacific region.

The Manila-based multilateral lender and the European Investment Bank (EIB), owned by EU member states, inked a memorandum of understanding (MOU) for areas of cooperation over the next five years.

ADB and EIB agreed to work on co-financing projects and technical assistance activities focusing on climate action and environmental sustainability, including opportunities to collaborate on private sector participation.

The EIB recently decided to establish a development branch for activities outside the EU.

Specific projects include renewable energy and energy efficiency, sustainable transport and urban development, sustainable agricultural value chains, water security, forestry and land use, climate change adaptation and disaster risk management, biodiversity conservation, and clean oceans and blue economy.

ADB president Masatsugu Asakawa said ADB’s ambition to deliver $100 billion in climate financing and EIB’s climate bank roadmap can provide substantial support as economies in Asia Pacific move to address the worsening impact of climate change.

EIB president Werner Hoyer, for his part, maintained that multilateral development banks must scale up climate financing to attain the goals of the Paris Agreement.

“This MOU will strengthen our cooperation even further in Asia and the Pacific. We are determined to support countries in their transition toward green economies and to meet the Sustainable Development Goals,” Hoyer said.

Apart from the projects, ADB and EIB will explore collaboration on enhancing risk-mitigating financial instruments and local currency funding for ADB’s developing member countries.

EIB is the third largest multilateral partner for ADB with a total of $2.26 billion in sovereign co-financing since 2007.