The financial institution is committed to reaching more than $100 billion in cumulative climate finance from 2019 to 2030, and the road map includes accelerated efforts to combat climate change and expand private sector development.

ADB’s Strategy 2030 Midterm Review—an update of its corporate strategy—outlines how the bank will transform in a rapidly changing development landscape and respond to challenges that threaten its vision for a prosperous, inclusive, resilient and sustainable region.

The review sharpens ADB’s strategic focus and sets new corporate targets in key areas.

In line with its mandate to fight poverty and improve lives and livelihoods, ADB will deepen its focus on five of the region’s most pressing development issues: climate action, private sector development, regional cooperation and public good, digital transformation, and resilience and empowerment. This enhanced focus will guide the allocation of staff and resources for greatest impact, an ADB release said.

To expand private sector development, ADB will target reaching total private sector financing of $13 billion for the year 2030, a tripling of current volumes. This will comprise both its own account financing and all direct mobilisation, including a minimum of $4.5 billion in direct private capital mobilisation.

In addition, ADB is targeting 40 per cent of sovereign operations contributing meaningfully to private sector development by 2030.

In September 2023, ADB approved capital management reforms that unlock $100 billion in new funding capacity over the next decade. The reforms expand the bank’s annual new commitments capacity to more than $36 billion—an increase of approximately $10 billion, or about 40 per cent.

In June 2023, ADB began implementing the most significant reforms since 2002 to the way it operates by implementing a new operating model to raise its capacity as the region’s climate bank; strengthening its work to develop the private sector and mobilise private investments; providing a larger range of high-quality development solutions for its developing member countries; and modernising ways of working to make it more responsive, agile and closer to clients.  

Fibre2Fashion News Desk (DS)