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Asian Development Bank

Information presented in this profile is for reference only. The Initiative, its Supporting Institutions and the Secretariat do not endorse the activities, tools or reports included in this profile.

Last updated: August 2023


Overview of climate mainstreaming approach and goals:

The Asia and Pacific region is at extreme risk of undoing its economic and social development gains due to unchecked disasters and unabated climate change. As Asia and the Pacific’s Climate Bank, ADB is committed to supporting its developing member countries (DMCs) in tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability – a key operational priority under Strategy 2030.  ADB’s Strategy 2030 is anchored on the vision of achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. Its third operational priority outlines key responses on (i) scaling up support to address climate change, disaster risks, and environmental degradation; (ii) accelerating low GHG emission development; (iii) ensuring a comprehensive approach to build climate and disaster resilience; (iv) ensuring environmental sustainability; and (v) increasing focus on the water–food–energy nexus. It also commits ADB’s climate operations target: 75% of the number of ADB’s committed operations (on a 3-year rolling average, including both sovereign and nonsovereign operations) will be supporting climate change mitigation and adaptation by 2030.

Recognizing the need for scaled up finance to transform economies towards low carbon and climate resilient development[1], ADB raised its ambition to deliver $100 billion of cumulative climate finance from 2019–2030, of which $34 billion is for climate adaptation and resilience,[2] and private sector operations expected to contribute $12 billion, with an expected crowding in of an additional $18 billion to $30 billion.[3] ADB has also committed to the alignment of its sovereign and nonsovereign operations with the goals of the Paris Agreement with new sovereign operations 100% aligned by 1 July 2023, and new nonsovereign operations 85% aligned by 1 July 2023 and 100% by 1 July 2025.

ADB has operationalized its new operating model (NOM) to accelerate its transformation and more effectively serve the rapidly changing needs of its DMCs and enable ADB to increase its capacity as Asia and the Pacific’s Climate Bank.[4] The NOM strengthens synergies between sovereign and nonsovereign operations and harnesses sectoral and thematic expertise towards swifter and enhanced delivery of climate products and knowledge services. A forthcoming Climate Change Action Plan will put into practice ADB’s vision as a trusted partner in enabling and stimulating climate-smart investment in the region, and its pursuit of its climate finance ambitions.

Principal Strategic Documents

Principal Tools and Methodologies

  • ADB Tools and Methodologies:
    • Climate Change Financing at ADB: The site contains a dashboard showing data on climate financing from 2017 onwards coming from ADB administered donor trust funds. Financing from multilateral climate funds such as Global Environment Facility, Climate Investment Fund, Green Climate Fund, and bilateral financing, among other are detailed. Data is disaggregated by: mitigation finance/adaptation finance, sector, region, instrument, recipient, and source. A link to downloadable datasets is also presented in the site.
    • Climate Risk Management in ADB Projects: ADB’s climate risk management approach aims to reduce risks resulting from climate change to investment projects in Asia and the Pacific. ADB’s framework identifies climate change risks to project performance in the early stages of project development and incorporates adaptation measures in the design of projects at risk.
    • Principles of Climate Risk Management for Climate Proofing Projects: This document identifies opportunities to update the Asian Development Bank (ADB) climate risk management (CRM) process and climate risk and adaptation assessments (CRAs). The intent is to streamline the CRM framework with a fit-for-purpose approach, and to improve the quality and consistency of CRAs. To this end, a set of guiding principles aligned with the three main phases of the ADB project cycle—conceptualization, preparation, and implementation—is presented here. The principles highlight the value of a more strategic method for upstream activities, as well as the benefits of a differentiated approach, in view of the varying CRA needs of projects. Specific principles are proposed for improving the main CRA steps, with a focus on project understanding and decision-led risk assessment, and on the prioritization of adaptation options. Finally, the paper emphasizes the need to strengthen downstream activities, to ensure that good practice flows into implementation. The paper provides useful lessons and insights into climate risk management for ADB and its developing member countries, as well as information relevant to climate risk assessments of investments.
    • Guidelines for the Economic Analysis of Projects (March 2017): Guidelines for ADB staff, consultants, and officials of developing member countries in assessing project proposals for economic viability and financial sustainability. Also provide guidance on the use of social cost of carbon, i.e. in valuing GHG emissions, it is important to use a standard value, also called global social cost of carbon, across all projects. A review of the empirical estimates of the global social cost of carbon reported by the Intergovernmental Panel on Climate Change suggests a unit value of $36.30 per ton of CO2 or its equivalent in 2016 prices for 2016 emissions, to be increased by 2% annually in real terms to allow for the potential of increasing marginal damage of global warming over time. This unit value can be used to estimate the benefit in damage avoided for projects that reduce emissions and the cost in damage created for projects that increase emissions. The unit value may be revised in the future as more and new estimates of global warming damage become available. (para 163)
  • Dashboards and datasets
    • Key Indicators Database: The Common Principles for Climate Mitigation Finance Tracking consist of a set of definitions and guidelines and a list of eligible activities that allow for consistent accounting and reporting of financial flows for climate change mitigation finance
  • Joint MDB Tools and Methodologies


Key Reports and Other Materials

  • ADB Key Reports:
  • Joint MDB Key Report
    • 2021 Joint Report on MDB’s Climate Finance: This 11th edition of the Joint Report on Multilateral Development Banks’ Climate Finance is an overview of climate finance committed in 2021 by the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG), the Islamic Development Bank (IsDB) and the World Bank Group (WBG). This year’s report also summarises information on climate finance tracking from the New Development Bank (NDB) and the Council of Europe Development Bank (CEB), presented separately from the joint figures.5 NDB and CEB climate finance commitments are not yet included in the total MDB climate finance reported in this year’s edition.

For a comprehensive list of publications from the ADB please consult the following document: Asian Development Bank – supplementary documentation PDF