ADB commits $50 million to accelerate energy transition in Asia-Pacific region

To address development challenges resulting from the effects of climate change in the Asia-Pacific, the Asian Development Bank (ADB) has committed USD 50 million to the Actis Asia Climate Transition Fund, the ADB said in a release. A global investor in sustainable infrastructure, Actis will manage this fund to accelerate the renewable energy transition.

The fund will be invested in renewable energy, energy solutions, and sustainable transportation companies, the ADB release said.

"Several Asian economies are vulnerable to rising sea levels, extreme weather events, and biodiversity losses. ADB's investment in the fund will help address these vulnerabilities by advancing efforts to build climate-resilient infrastructure and adopt climate-smart technologies in Asia and the Pacific," said ADB Director General for Private Sector Operations Suzanne Gaboury.

Under the initiative, the investee companies will get help in creating net-zero plans that align with the Paris Agreement and in committing to a credible pathway to reduce emissions.

Additionally, this investment by ADB includes the adoption of a gender lens investing approach to enhance the gender-inclusive practices of investee companies, the release said.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members--49 from the region.

ADB prioritises projects on basic services, critical infrastructure and services, and sustainability in Asia-Pacific.