THE Asian Development Bank (ADB) committed a record US$9.8 billion in climate finance in 2023 to help the region’s developing economies reduce their carbon footprints and cope with climate change.

The sum marks a 46 per cent increase from the ADB’s 2022 climate financing commitments, said the regional development bank on Wednesday (Jan 31).

Of the US$9.8 billion in commitments, US$5.5 billion was for efforts to mitigate greenhouse gas emissions, while the remaining US$4.3 billion was for adapting to the effects of climate change.

The ADB’s projects last year included a US$400 million policy-based loan to help Bangladesh with its climate adaptation plan; a US$1 billion loan to deploy an electric bus system in the Philippines’ Davao City; and an US$18 million grant from the Asian Development Fund to improve water sustainability in Micronesia.

The bank has provided more than US$10.4 billion in cumulative adaptation financing from 2019 to 2023, exceeding its target of providing US$9 billion between 2019 and 2024.

Countries in Asia and the Pacific are especially prone to climate change effects such as extreme heat, droughts and heavy rains. However, adaptation investments remain a fraction of what is required, the ADB noted.

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“This crisis threatens energy and food security and creates fiscal challenges,” said ADB president Masatsugu Asakawa, adding that the bank wants to help developing members progress in the climate transition and achieve their net-zero goals.

Asia and the Pacific region will need to invest an estimated US$3.1 trillion per year in energy and transport assets alone to hit net-zero emissions by 2050 – 50 per cent more than current levels of investment.

In the longer term, the ADB aims to provide US$100 billion in climate financing from its own resources from 2019 to 2030. Established in 1966, the bank is owned by 68 members, of which 49 are from Asia and the Pacific.