Manila: The Asian Development Bank (ADB) has approved an ambitious new road map to guide its evolution and scale up its support on key challenges facing Asia and the Pacific, including accelerated efforts to combat climate change and expand private sector development.

ADB’s Strategy 2030 Midterm Review-an update of its corporate strategy-outlines how the bank will transform in a rapidly changing development landscape and respond to challenges that threaten its vision for a prosperous, inclusive, resilient, and sustainable region.

To boost the region’s response to climate change, ADB will target for climate finance to reach 50 percent of its total annual committed financing volume by 2030. ADB is committed to reaching more than $100 billion in cumulative climate finance from 2019 to 2030.

To expand private sector development, ADB will target reaching total private sector financing of $13 billion for the year 2030, a tripling of current volumes. This will comprise both its own account financing and all direc
t mobilization, including a minimum of $4.5 billion in direct private capital mobilization. In addition, ADB is targeting 40 percent of sovereign operations contributing meaningfully to private sector development by 2030.

These new actions build on ADB’s ongoing efforts to increase its funding capacity and improve its efficiency in response to calls for reforms to how multilateral development banks are organized and provide support to their members.

In September 2023, ADB approved capital management reforms that unlock $100 billion in new funding capacity over the next decade. The reforms expand the bank’s annual new commitments capacity to more than $36 billion-an increase of approximately $10 billion, or about 40 percent.

Source: Emirates News Agency