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.
|Some progress||Carbon price is close to High Level Commission on Carbon Pricing minimum. Emission threshold could be improved, and Scope 3 emissions are not included.|
The Asian Development Bank does apply a shadow carbon price, the table below provides a summary of how it is applied across bank operations.
|Which projects subject to greenhouse gas (GHG) assessment||All projects which exceed a 100,000 tonnes CO2/year absolute emission threshold. E3G understands all projects are screened in terms of their GHG emissions and more detailed analysis is conducted once a threshold is exceeded.|
|Which projects apply shadow carbon pricing||All projects where costs and benefits can be quantified.|
|Price level||Borderline on minimum price recommended by High-Level Commission on Carbon Prices (HLCCP). ADB has the lowest carbon price in 2030.|
|How shadow carbon price is used||Says ‘should’ be used as basis for investment decisions. Applies the carbon price to the reduction or increase in project emissions against a baseline. Use of the carbon price as a hurdle and the broad coverage suggests good practice.|
|What is it compared to?||The “without project” baseline scenario may not necessarily be the status quo. In comparing project alternatives, the same “without project” scenario should be used throughout.|
|Are scope 3 emissions included?||No|
The graph below shows how the level of carbon pricing at the bank compared with those of the High-Level Commission on Carbon Prices (HLCCP). The HLCCP prices only extend to 2030.
Recommendation: ADB should apply a carbon price scenario to assess alignment with limiting warming to below 1.5°C, alongside the other MDBs.
Last Update: November 2020