• 26.09.2022
  • Ecological justice
  • Array

As the Asian Development Bank (ADB) opens its Annual Meeting 2022, Recourse has released a new publication calling on the bank to shift its investments from dirty to clean and to tackle the climate crisis in all its policies.

ADB calls itself “Asia and the Pacific’s Climate Bank”, referring to achievements such as being the first multilateral development bank (MDB) to in 2015 set climate investment targets for 2030 and for launching a Climate Change Operational Framework in 2017. Last year ADB joined other MDBs in committing to align operations with the goals of the Paris Agreement on climate change with a first deadline of 1 July 2023. ADB also finally committed to stop financing coal power projects in its revised Energy Policy. It is currently working on a Climate Change Action Plan and a Paris Alignment Guidance Note, and is reviewing its Safeguard Policy Statement (SPS), including a consultation on climate change.

Despite these promising moves, significant loopholes mean ADB cannot yet be termed the “Climate Bank”. ADB’s new Energy Policy did not exclude financing for all fossil fuels; in particular the bank continues to promote fossil gas with only few limitations. Questions also remain on how ‘Paris alignment’ will be interpreted by MDBs in practice. Early signs from ADB raise concerns that investments promoted to be ‘climate friendly’ in fact run counter to ambitions to limit global warming to 1.5C above pre industrial levels, in line with the Paris Agreement, including continued financing of fossil fuels.

As ADB develops its Climate Change Action Plan, Paris Alignment Guidance and revises the SPS, it is crucial that it closes loopholes and does not water down commitments already made, but rather strengthens and adds to those commitments to fully support the 1.5C goal. This must cover both direct and indirect finance, as well as other types of support, such as technical assistance. It must also ensure that the energy transition to renewable and sustainable sources is just and fair for all, supports gender equity and includes the most vulnerable people and communities.

Read more here.

Asia Fossil Gas Red-Flag Map
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Asia Fossil Gas Red-Flag Map