Daily Times

The Asian Development Bank (ADB) committed 22.8b U.S. dollars from its own resources in 2021 to help Asia and the Pacific tackle immediate effects of the COVID-19 pandemic and promote a green recovery.

The Manila-based lender said in a statement received here Tuesday that its “Annual Report 2021” summarizes how ADB supported its developing member countries (DMCs) through a combination of finance, knowledge, and partnerships.

“ADB firmly believes that addressing the impacts of the pandemic and supporting long-term development are not mutually exclusive,” said ADB President Masatsugu Asakawa.

“Our sustained COVID-19 response has laid the foundations for an inclusive, resilient, and green recovery, ensuring progress toward our Strategy 2030 objectives.” The 22.8b U.S. dollars committed in 2021 includes loans and guarantees, grants, equity investments, and technical assistance provided to governments and the private sector.

In addition, ADB said it mobilized 12.9b U.S. dollars in co-financing.

Of ADB’s 2021 commitments, 13.5b U.S. dollars, or 59pc, was for the pandemic response, although many of these commitments, such as strengthening the health sector, will also help the region long after the pandemic is over. Addressing longer-term development challenges, such as climate change, remained an important focus of ADB’s 2021 operations.

“The battle against climate change will be won or lost in Asia and the Pacific. To succeed, our region needs to accelerate the transition to a low-carbon future,” said Asakawa.

To help meet its new elevated ambition of 100b U.S. dollars in cumulative climate financing by 2030, the bank announced a series of financing initiatives to bolster the region’s low-carbon development. For example, ADB launched the Energy Transition Mechanism that will leverage private and public investments to finance the early retirement of coal-power assets, scale up clean and renewable energy solutions, and ensure the transition is just and affordable. All of ADB’s 2021 commitments include elements that will specifically benefit women and girls.

The bank also ramped up efforts to assist governments to mobilize domestic financial resources essential for sustainable growth, including through the launch of the Asia Pacific Tax Hub, a vehicle to support tax and related reforms region-wide.

ADB’s 2021 commitments were funded by its second-largest borrowing program to date, which raised 35.8b U.S. dollars through the capital markets. ADB sold a record volume of thematic bonds last year and issued education bonds and blue bonds for ocean health for the first time.

The report also details a series of internal reforms underway to ensure ADB has the right skills, culture, structure, and tools to fulfill its mission.