ADB’s Climate Change Program

Media Leaders Forum

7 December 2011, Singapore

Robert van ZwietenRobert van ZwietenDirectorDirector

Capital Markets and Financial Sectors Division Capital Markets and Financial Sectors Division Private Sector Operations DepartmentPrivate Sector Operations Department

Asian Development BankAsian Development Bank

‘Prediction is very difficult, especially about the future.’

Niels Bohr, Danish physicist (1885 - 1962)

Outline

About ADB

Overview of Climate Change Challenges in Asia-Pacific

ADB’s Response: Strategy and Actions

ADB Basics The Asian Development Bank (ADB):

– Multilateral development finance institution established in 1966– Poverty reduction is overarching mandate– Provides financial and technical assistance– 67 members – 48 of which are from Asia and Pacific region– 2008-2010 approved financing:$11 to $16 billion/year

ADB’s strategic agenda (Strategy 2020):– Inclusive economic growth– Environmentally sustainable growth (environment including

climate change: one of five core areas of operations)– Regional integration

Most Affected Asian Countries by Climate-Related Threats

Droughts Floods Storms Sea Level rise (1m) Agriculture

Malawi Bangladesh Philippines low-lying Island States Sudan

Ethiopia China Bangladesh Vietnam Senegal

Zimbabwe India Madagascar Egypt Zimbabwe

India Cambodia Viet Nam Tunisia Mali

Mozambique Mozambique Moldova Indonesia Zambia

Niger Laos Mongolia Mauritania Morocco

Mauritania Pakistan Haiti China Niger

Eritrea Sri Lanka Samoa Mexico India

Sudan Thailand Tonga Myanmar Malawi

Chad Viet Nam PRC Bangladesh Algeria

Kenya Benin Honduras Senegal Ethiopia

Iran Rwanda Fiji Libya Pakistan

Note: The typology is based on both absolute effects (e.g., total number of people affected) and relative effects (e.g., number affected as a share of GDP). Source: IPCC data

Developing Asia’s Share in Global Energy-Related CO2 Emissions

2008

Actual (World)Total = 29,260 Mil tons CO2

2030

Projection (World)Total = 40,009 Mil tons CO2

Rest of the

World

Rest of the

World

Developing Asia

Data Source: IEA World Energy Outlook 2010

67%

33% 45%

55%

ADB’s Response:Climate Change Strategic Priorities

Finance Knowledge Partnership

Scaling-up Clean Energy

Encouraging Sustainable Transport and Urban Development

Managing Land Use and Forests for Carbon Sequestration

Strengthening Policies, Governance and Capacity

Modalities

Prio

rities

Promoting Climate-resilient Development

ADB Climate Change Projects

Key Initiatives Clean Energy

– $1.76 billion 2010 investments; $2 billion target by 2013– Asia Solar Energy Initiative: 3,000 MW by 2013– Quantum Leap in Wind: 1 GW by 2016– Energy for All: 100 million poor by 2015

Sustainable Transport and Urban Development– Sustainable Transport Initiative– Cities Development Initiative for Asia– Urban Operational Plan

Land Use/Forest for Carbon Sequestration– Piloting REDD/Forest Investment Program: e.g. Indonesia and

Lao PDR

Key Initiatives

Mainstreaming climate resilience in core development planning– Pilot Program on Climate Resilience for Bangladesh, Cambodia,

Nepal, Tajikistan and the Pacific

Increasing resilience of vulnerable sectors (e.g. agriculture, water, energy, transport)

Climate proofing vulnerable projects

Addressing social dimensions: e.g. climate-induced migration, health impacts

Finance Mobilizing concessional resources

– Internal funds: Climate Change Fund, Clean Energy Financing Partnership Facility

– External funds: CIF, GEF

Maximizing market mechanisms – Carbon Market Program: upfront carbon finance and technical

assistance

Catalyzing private capital– Direct project finance (lending, guarantees)– Equity investments

Leveraging Private Capital for Technology Innovation and Diffusion Asia Climate Change and Clean Energy Venture Capital

Initiative: $60 million equity investments

Pilot Climate Technology Finance Center – Technology mainstreaming in development plans– Technical support for projects on climate technology– Advisory assistance to venture capital funds– Marketplace for low-carbon technologies

“Private Equity Fund”

Knowledge and Partnerships Finance

– CIF, GEF (with MDBs and Donor Partners)

Knowledge and Outreach– Asia Pacific Adaptation Network (with UNEP)– Multimedia campaign (with Asia Pacific

Broadcasting Union)– Asia Clean Energy Forum, Urban Forum,

Transport Forum (with several partners)– Studies on

• economics of climate change (with UK)• agriculture (with IFPRI), • Energy (with TERI)• migration (with University of Adelaide), • climate impacts on coastal megacities (with WB, JICA)

Mitigation Adaptation

Finance

Technology

UNFCCC “Bali Building Blocks” …and IFI/MDB relevance today

Pushing the Innovation Frontier

Thank You

Thank You