Developing countries get foreign funding to fight climate change
More funding support for climate change mitigation efforts in developing countries, particularly those in Southeast Asia, as well as their economic recovery from the pandemic poured in as the international community caught up with collective efforts to rein in rising temperatures.
Partners of the Asian Development Bank (ADB) chipped in a total of $665 million intended to gather momentum for an additional $7 billion for low-carbon and climate-resilient infrastructure projects in Southeast Asia and rev up the region’s bounce back from the COVID-19 crisis.
At the same time, the International Renewable Energy Agency (Irena) and the United Arab Emirates (UAE) secured $400 million in funding for their Energy Transition Accelerator Financing (Etaf) platform, intended to bankroll 1,500 MW of new renewable energy-based power generating capacity in developing countries by 2030.
According to the ADB, funding from the government of the United Kingdom ($151 million), European Union ($59 million), Italian state lender Cassa Depositi e Prestiti ($151 million), the Green Climate Fund ($300 million) were committed to a new Green Recover Platform.
This platform, in turn, will support the Association of Southeast Asian Nations (Asean) Catalytic Green Finance Facility (ACGF) —which was established by the Asean Infrastructure Fund and is managed by ADB.
“Asean countries have a unique opportunity to build a green and inclusive future after the COVID-19 pandemic,” said Masatsugu Asakawa, president of ADB.
“The Asean Green Recovery Platform will help accelerate the flow of investments to support climate-resilient, environmentally sustainable infrastructure projects in Southeast Asia and boost sustainable, equitable development,” Asakawa said.
The new funding brings to $2 billion the total pledges to the ACGF since 2019.
The platform will support the efforts of Asean developing member countries to reach their climate goals under the Paris Agreement and help them strengthen green capital markets, such as by expanding the issuance of green and climate bonds.
In the UAE, Irena—of which the Philippines is a member— has signed up the Abu Dhabi Fund for Development as the first strategic partner that will provide the anchor funding for the Etaf platform.
With a goal of securing at least $1 billion in total funding, the Etaf platform is a new global climate finance facility intended to help boost the transition to renewable energy in developing countries.
The new accelerator platform will help mitigate investment risks and finance renewable energy projects in developing countries that may otherwise struggle to secure sufficient capital.