Asian Development Bank Approves Ambitious Strategy to Combat Climate Change and Boost Private Sector Development

The Asian Development Bank (ADB) has approved a bold new strategy aimed at addressing critical challenges in Asia and the Pacific, with a strong focus on climate action and private sector development. This move, encapsulated in the Strategy 2030 Midterm Review, reflects the ADB's efforts to adapt to an evolving development landscape while maintaining its mission of fostering a prosperous, inclusive, resilient, and sustainable region.

ADB President Masatsugu Asakawa emphasized the importance of this strategic update, stating, “Cascading shocks have disrupted years of development progress in Asia and the Pacific. The ADB is updating its vision, expanding its financial capacity, and modernizing its operational approach to help its members navigate these unprecedented challenges, including the escalating climate crisis, public health emergencies, and economic vulnerabilities. Our support is needed now more than ever."

The Strategy 2030 Midterm Review refines the ADB’s focus across five key areas: climate action, private sector development, regional cooperation, digital transformation, and resilience. The strategy is accompanied by new corporate targets to maximize impact in these areas.

Key Highlights of the Strategy:

1. Climate Action: ADB aims to allocate 50% of its total annual financing to climate-related projects by 2030, with a cumulative climate finance target exceeding $100 billion between 2019 and 2030.

2. Private Sector Development: ADB plans to increase private sector financing to $13 billion annually by 2030, including at least $4.5 billion in direct private capital mobilization. Additionally, 40% of sovereign operations will contribute to private sector development.

3. Capital Reforms: In September 2023, ADB implemented capital management reforms, unlocking $100 billion in new funding capacity over the next decade. This raises its annual new commitment capacity to over $36 billion, a 40% increase.

4. Operational Efficiency: Reforms introduced in June 2023 further enhance ADB’s role as the region’s climate bank and improve its ability to support the private sector, while adopting a more responsive and client-focused operational model.

Since its establishment in 1966, the ADB has been a pivotal force in promoting economic development across the region. Owned by 68 members, with 49 from Asia and the Pacific, the ADB continues its mission to eradicate extreme poverty while addressing urgent contemporary challenges.