ADB Pledges $100b to Tackle Regional Climate Change

During the 40th and 41st ASEAN Summits, ADB promised to pump $100 billion into combating climate change and promote green development across the region
Ministry of Economy and Finance, October 26, 2022. Kiripost/Siv Channa
Ministry of Economy and Finance, October 26, 2022. Kiripost/Siv Channa

The Asian Development Bank (ADB) has pledged to plough $100 billion to combat climate change in the region until 2030.

On November 10, at the 40th and 41st ASEAN Summits, Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, met with Masatsugu Asakawa, ADB President, at the ministry’s headquarters, according to a press release issued by the Ministry of Economy and Finance

ADB has been instrumental in helping the government respond swiftly to challenging situations, including donating $250 million for the fight against Covid-19 and an additional $400 million to aid the recovery of Cambodia’s economy following the Covid-19 crisis.

During a working visit to Cambodia in October, Winfried F. Wicklein, Deputy Managing Director for Southeast Asia of ADB, pledged an additional $400 million in addition to the $480 million already agreed for 2023 and 2024.

Pornmoniroth stated that there is growing concern of global crises due to the ongoing Russian-Ukrainian war and geopolitical conflicts. While Cambodia has achieved community immunity against Covid-19 by adopting vaccination strategies and reopening the country and economy, it still faces challenges.

The press release stated that ADB has pledged $100 billion in financing to address climate change in the region for 2019 to 2030, including Cambodia.

As part of the ADB pledge, Pornmoniroth supported the four key policies of increasing funding, promoting private sector participation through innovative financing mechanisms, building capacity and knowledge, improving international cooperation and national development policies, and aggregation to climate change to contribute to climate change mitigation.

“Promoting green development in response to climate change must be based on the approach of maintaining a balance between high, sustainable economic growth and the environment with green demand," Pornmoniroth said.

He requested ADB continue to fund initiatives in key sectors, including agricultural development, trade promotion, and urban infrastructure development, with an emphasis on sewerage, and effective management of water resources.

This can be achieved through investment in building irrigation infrastructure in line with a clear master plan to support farmers' livelihoods, promote agricultural growth, contribute to economic growth, and address climate change, and waste management with a clear master plan and investment plan, including consideration of cost recovery and operational sustainability mechanisms.

According to ADB, it has approved $32.5 million to increase access to quality health services in Banteay Meanchey. The northwestern border province is often where migrants leave and return for jobs in the province's special economic zones.