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.
Paris alignment | Reasoning |
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Paris aligned | The ADB provides extensive climate-related technical assistance at both the policy and project levels to support the implementation of Paris Agreement goals. Policy level examples include the Bank’s NDC Advance Platform, the Asia Pacific Tax Hub for climate action, and support for fossil fuel subsidy reform. At the project level, ADB Ventures provides technical and financial support to climate-focused startups. Beyond its ongoing support for NDC implementation, the Bank is also supporting several countries with preparation of their NDC 3.0, including enhanced mitigation target setting, and could look to further scale up such efforts to enhance ambition among a wider set of DMCs. |
Climate-related technical assistance at policy-level | NDC ambition increase goal? | Non-NDC technical assistance |
The ADB provides extensive policy level, climate-related technical assistance. This includes, through the NDC Advance Platform, the Climate Adaptation Investment Planning, and the Joint MDB LTS Program, and targeted support for climate-related national policy formulation. | The ADB’s NDC Advance Platform refers to supporting countries with “refining and enhancing” their climate ambition. The Bank is supporting at least six countries with the preparation of their NDC 3.0, including setting enhanced mitigation targets, with support due to be finalised by the end of 2025. | ADB Ventures, launched in 2020, supports climate-focused startups in Asia and the Pacific through equity investments and technical assistance. |
Policy level, climate-related technical assistance
As outlined in its Climate Change Action Plan 2023–2030, the ADB envisions itself as having a role in “[helping to] implement and update NDCs, long-term climate strategies, national adaptation plans, and other climate policies and action plans, integrating climate considerations into planning and budgeting processes to support climate action alongside economic growth”. Accordingly, the Bank’s NDC Advance Platform (launched at COP24 in 2018) aims to assist recipient countries, particularly Developing Member Countries (DMCs), by:
- Helping DMCs refine and enhance their climate ambitions through translating their NDCs into climate investment plans and identifying priority climate projects.
- Improving access to public and private financing.
- Developing monitoring and reporting tools tailored to NDCs.
- Supporting the identification of investment opportunities and barriers related to climate adaptation.
In terms of operationalising these goals, the programme aims to assist DMCs in translating NDCs into viable, bankable, and actionable investment plans, develop innovative financing mechanisms to support these plans, and create monitoring, reporting, and verification (MRV) frameworks. The program initially had a budget of USD 4.5 million and was piloted in a select number of countries during its first phase. Starting in 2022, with additional funding from the ADB and the Austrian government, the total budget increased to USD 9.12 million. As of 2025, the platform had supported 21 countries in effective NDC planning and implementation.[1] The Bank will also support at least six countries with preparation of their NDC 3.0, including setting enhanced mitigation targets, with support due to be finalised by the end of 2025.[2]
Relatedly, the ADB has launched the Climate Adaptation Investment Planning (CAIP) programme, geared towards translating the adaptation priorities outlined in NDCs and national adaptation plans (NAPs) into adaptation investment plans. Integrating these adaptation investment plans into country level medium-term planning and economic and fiscal frameworks will in turn help secure programmatic funding for implementing adaptation initiatives. Ten countries currently receive support from this programme.
The ADB is also part of the joint MDB LTS program (LTS-P), announced at COP28 and hosted by the World Bank Group. This programme was established to facilitate coordinated MDB support for the development and implementation of ambitious LTSs and is currently being operationalised by the ADB. This is complemented by the Bank’s own ongoing technical assistance programme on Paris alignment in country programming. Through this, the ADB is supporting nine countries through capacity building and dialogue on the alignment of country strategies with NDCs.
The ADB also provides extensive policy level technical assistance well beyond its specific support for NDCs. The Bank launched the Asia Pacific Tax Hub to support tax policy and administration for climate action. Additionally, the ADB states in its Climate Change Action Plan 2023–2030 that it will assist DMCs in embedding climate change in national budgets and planning and procurement processes. The ADB provided its first dedicated policy-based climate loan to the Philippines in 2022, providing USD 250 million for the government to implement national climate policies, including the fulfilment of NDCs and peaking GHG emissions by 2030. Also of note is the Bank’s Just Transition Support Platform, which provides technical assistance support for DMCs to strategically plan, implement, and finance just transition, in a way that maximises the net benefits.
Fossil fuel subsidy reform
The ADB has conducted analyses on fossil fuel subsidy reform in various countries, showing that the funds saved through such reforms could be used to compensate low-income households and promote sustainable energy initiatives. In addition, the ADB published a tool kit in July 2023 on Carbon Pricing and Fossil Fuel Subsidy Rationalisation, aimed at guiding policymakers of DMCs to design, implement, and manage fossil fuel subsidy reduction programs. The Bank has also provided targeted technical support for implementing energy subsidy reform in several instances, including advising policymakers on reform strategies in Thailand and Indonesia. It is unclear whether the ADB’s technical support offering on fossil fuel subsidy reform has been accompanied by financial assistance or incentives to support implementation.
Other technical assistance
ADB Ventures, launched in 2020, is the ADB’s venture arm that aims to support and scale up technology-driven solutions addressing climate change and other development challenges in Asia and the Pacific. By focusing on early-stage startups with high potential for growth and impact, ADB Ventures provides a blend of capital investment and technical assistance to accelerate the achievement of Paris Agreement goals. The initiative offers equity investments, typically ranging from USD 1 million to USD 4 million, along with specialised technical support to help startups refine their business models, improve their operations, and expand their reach. Through this approach, ADB Ventures not only catalyses private sector innovation in climate mitigation and adaptation technologies but also helps bridge the gap between climate solutions and bankable projects.
Recommendations:
- The ADB should formalise a commitment to support more countries to further increase the ambition of their NDCs where possible, building on its existing work through the NDC Advance Platform to set increased mitigation targets. The ADB could further leverage its technical expertise through this high impact approach to support a wider set of countries to develop and implement NDCs and LTSs aligned with the Paris Agreement’s temperature goals.
- The ADB could enhance its technical assistance programs to further support Paris alignment and climate reporting practices among its partner financial intermediaries. For example, this could include training programs to help financial intermediaries improve their tracking and reporting of climate-related activities (an area of disclosure where the ADB is considered a leader), including in implementing specific climate reporting guidelines (such as TCFD reporting).[3]
[1] Information received directly from the ADB.
[2] Information received directly from the ADB.
[3] See the “Transparency of climate finance” metric for further details.