ADB to Boost Climate Lending by $7.2 Billion with US, Japan Sovereign Guarantees

Nov 11, 2024, 05:03 AM

The Asian Development Bank (ADB) will increase its climate-related lending by up to $7.2 billion following the provision of the world's first sovereign guarantees by the United States and Japan. This move marks a significant step in climate finance, as these guarantees will underwrite the risk for some existing loans. Additionally, the Climate Finance Adaptation Fund plans to support adaptation, mitigation, and research & development. It will also provide off-take guarantees to small and medium-scale renewable energy producers and bear initial losses for green financing, according to Diya Shah.