The presidents of the Asian Development Bank (ADB) and European Investment Bank (EIB) signed a memorandum of understanding (MOU) Tuesday setting out areas of cooperation in Asia and the Pacific over the next 5 years.
Under the MOU, signed on the sidelines of COP26 in Glasgow, the institutions agreed to work on cofinancing projects and technical assistance activities focusing on climate action and environmental sustainability, including opportunities to collaborate on private sector participation.
“With ADB’s ambition to deliver $100 billion in climate financing to our developing member countries in 2019–2030 and EIB’s climate bank roadmap in place, our partnership can provide substantial support as countries in Asia and the Pacific plan for, adapt to, and mitigate climate change impacts,” said ADB President Masatsugu Asakawa.
Asakawa also congratulated the EIB Group on its decision to establish a development branch for activities outside the European Union.
Cooperation will include projects in renewable energy and energy efficiency, sustainable transport and urban development, sustainable agricultural value chains, water security, forestry and land use, climate change adaptation and disaster risk management, biodiversity conservation, and clean oceans and blue economy.
“To reach the Paris goals, multilateral development banks must work together and scale up climate finance,” said EIB President Werner Hoyer. “We have a long track record of working closely with the Asian Development Bank to finance sustainable energy and transport projects. The memorandum of understanding we are signing today at COP26 will strengthen our cooperation even further in particular in Asia and the Pacific. Together, we are determined to support countries in their transition towards green economies and to meet the Sustainable Development Goals.”
In addition to projects, the banks will explore collaboration on developing risk-mitigating financial instruments and local currency funding for ADB’s developing member countries; share expertise, in particular on product development and best practices; and strengthen staff secondments and knowledge exchanges.
EIB is the third-largest multilateral partner for ADB with a total of $2.26 billion in sovereign cofinancing since the partnership started in 2007.
For 25 years, EIB has supported the economic and social development in Asia and the Pacific region through projects ranging from cutting travel times for people of Bangalore with a new metro line, to providing cheaper, cleaner energy in western Nepal.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
This feature was published at Asian Development Bank (ADB) on 02 November 2021, reposted via PACNEWS.
