Climate Action 2014-2015

CLIMATE FINANCE
We strongly support measures to
mobilise finance for scaled-up
investment in low-carbon, climateresilient
infrastructure. The 2013 World
Economic Forum Green Investment
Report estimates that US$700 billion per
year is needed to make infrastructure
‘green’, on top of an underlying
investment need of US$5 trillion, mostly
in developing countries, to build that
infrastructure. This is a huge challenge
before global mean temperatures rise
more than 2°C and our window for
action closes; and will only be possible
through a committed partnership
between the public and private sectors,
and, indeed, between developed and
developing countries.
THE ROLE OF
GOVERNMENTS AND THE
PRIVATE SECTOR
Many governments in Asia-Pacific
are implementing national climate
action plans and pledging to reduce
greenhouse gas emissions. But even if
global emission-reduction pledges are
realised, the 2013 Emissions Gap Report
by the United Nations Environment
Programme forecasts that we will still
be emitting 8-12Gt of greenhouse
gas emissions per year more than we
should if we are to comply with the 2°C
target in 2020. This means that we must
redouble our efforts to reduce emissions.
"Governments must use
their limited public funds
wisely, design the right type
of financial instruments,
and create a conducive
environment for green
investment and green growth."
As such, governments must use their
limited public funds wisely, design the
right type of financial instruments, and
create a conducive environment for
green investment and green growth.
Ultimately, though, it is the private
sector that will provide the bulk of funds
in the fight against climate change and
we must find ways to unlock further
private investment by helping countries
establish effective regulatory frameworks
and prepare bankable projects.
ADB is working on both fronts.
For example, we recently signed a
Memorandum of Understanding on
climate change with the National
Development and Reform Commission
(NDRC) of the People’s Republic of
China, to jointly develop innovative
climate change-related approaches
and projects. ADB also supported the
establishment a year ago of the Tianjin
emissions trading scheme, one of seven
city-level pilot schemes which will
anchor the national carbon market set to
start in 2016.
ADB is also targeting private sector
development and private sector
operations to reach 50 per cent of its
annual operations by 2020. In the last
three years, about 38 per cent of ADB
energy projects were private sector
projects, many of them ground-breaking.
A series of solar power projects in
Thailand demonstrates the commercial
viability of private sector utility-scale
energy generation projects. Earlier this
year, ADB, ORIX Corporation and
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