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26/04/24 | 4:22 pm

ADB charts course for sustainable growth with strategy 2030, unveils strategy at World Energy Congress

The Asian Development Bank (ADB) has reaffirmed its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region during its participation at the 26th edition of the World Energy Congress.

Under its Strategy 2030, ADB continues to address the region’s changing needs through innovative initiatives and strategic reforms, sustaining efforts to meet its seven operational priorities and other focus areas.

In 2023, ADB delivered total commitments of $23.6 billion, providing robust support for the region’s development needs, including significant disbursements of $17.8 billion. Its Ordinary Capital Resources (OCR) reported a net income of $938 million, with an allocable net income of $1.423 billion.

Despite a decrease in net income, primarily due to unrealized losses from fair value changes of financial instruments, the allocable net income increased, driven by higher income from liquidity investments and lower administrative expenses.

ADB successfully transitioned all non-sovereign OCR loans from the London Interbank Offered Rate (LIBOR)-based loans to the Flexible Loan Product (FLP) by the end of 2023, ensuring alignment with global financial standards.

In September 2023, ADB’s Board of Directors approved capital management reforms unlocking $100 billion in new funding capacity over the next decade. These reforms, introduced through an update of ADB’s Capital Adequacy Framework (CAF), aim to address multiple crises in Asia and the Pacific, including climate change.

ADB adopted a new operating model aimed at increasing its capacity as the region’s climate bank, delivering $100 billion in cumulative climate finance from 2019 to 2030, strengthening private sector development, providing high-quality development solutions for member countries, and modernizing working methods to enhance responsiveness and agility.

ADB introduced the Innovative Finance Facility for Climate in Asia and the Pacific Financing Partnership Facility (IF-CAP FPF) in April 2023.

This program aims to ramp up support for climate change mitigation and adaptation efforts in the region by providing grants and guarantees to cover a portfolio of ADB sovereign loans.

Furthermore, the International Finance Facility for Education (IFFEd) Trust Fund was established in April 2023, with the aim of catalyzing up to USD 2 billion in new education loans through guarantees for ADB sovereign loans.

(Inputs from ANI)

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