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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Paris alignmentReasoning
UnalignedFor every $1 the Asian Development Bank provided to fossil fuels, $0.9 went to renewables and $0.7 went to energy networks (transmission and distribution) between 2016-2019. 

Explanation

For every $1 the Asian Development Bank provided to fossil fuels, $0.9 went to renewables and $0.7 went to energy networks (transmission and distribution) between 2016-2019.  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. Climate finance also dropped in 2020, due to the COVID-19 response of the ADB. 

The ADB’s climate finance targets for 2020 and beyond were increased in October 2021. The target is now a cumulative $100billion between 2019-30, up from $80 billion previously. This is a welcomed increase in their target. 

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

                             

This work is funded by Good Energies Foundation.

Last Update: July 2022