Asian Development Bank

Non-fossil to fossil energy ratio and scaling up climate investment in all sectors

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.

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UnalignedFor every $1 the Asian Development Bank provided to fossil fuels, $0.7 went to renewables and $0.6 went to energy networks (transmission and distribution) between 2016-2018.

Explanation

For every $1 the Asian Development Bank provided to fossil fuels, $0.7 went to renewables and $0.6 went to energy networks (transmission and distribution) between 2016-2018.  This is a poor ratio between fossil to non-fossil energy lending, and needs to be addressed. (See graph below for more information.)

Climate finance as percentage of total operations has increased at a slower rate than some of the other Multilateral Development Banks.

The ADB’s climate finance targets for 2020 and beyond are not “stretch” targets and could be made more ambitious. The ADB has for example already exceeded its 2020 target in 2019, which is to be applauded but could indicate that the target was not sufficiently ambitious. ADB could be doing more in this area when its performance is compared to its peers.

Recommendation: Scale up climate investment in the energy sector to ensure fossil fuel lending is at zero across a 3-year period.

 
OECD (2018) OECD DAC Recipient Perspective – Climate Finance
Oil Change International (2018) Shift the Subsidies database
Joint Report on Multilateral Development Banks Climate Finance (2019,2018,2017,2016,2015,2014,2013)
Asian Development Bank (2020) Climate Change Financing at ADB
Last Update: November 2020

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