ADB to tap $700M to combat climate change

(Xinhua)
Updated: 2009-12-03 22:33

MANILA: The Asian Development Bank (ADB) on Thursday said it is planning to channel around 700 million US dollars from two new investment funds to its developing member countries as part of a broad global initiative to help developing countries meet the cost of actions needed to combat climate change.

Donor countries, including Australia, France, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom and United States, pledged over 6.1 billion US dollars in 2008 for the Clean Technology Fund and Strategic Climate Fund.

The two funds are designed to be interim financing tools and will be discontinued once the United Nations Framework Convention on Climate Change completes deliberations on a new global program for addressing climate change, and the new financial mechanisms needed to support it, the ADB said in a press release.

The Clean Technology Fund, to be issued in concessional loans, will support the deployment of low carbon energy technologies as well as energy efficiency measures for industry, commercial buildings and municipalities. Activities supported by this fund will get co-financing from ADB's regular operations, and this is expected to mobilize additional financing from both the state and private sectors.

The Strategic Climate Fund, to be issued in grants, will support pilot programs on climate resilience, forest investment and scaling up renewable energy use for low-income countries, with the end goal of demonstrating effective climate mitigation and adaptation interventions that can be expanded and replicated in future.