Four institutions have pledged $665 million to the platform managed by Manila-based Asian Development Bank (ADB) that aims to mobilize an additional $7 billion for low-carbon and climate-resilient infrastructure projects in Southeast Asia and hasten the region’s recovery from COVID-19.
The funding, which was announced at the 26th Conference of the Parties (COP26) in Glasgow, Scotland, includes ₤110 million ($151 million) from the Government of the United Kingdom, €132 million ($155 million) from Italian state lender Cassa Depositi e Prestiti (CDP), €50 million from the European Union, and $300 million from the Green Climate Fund (GCF).
These partnerships will form part of a new Green Recovery Platform to support the Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility (ACGF), which was established by the ASEAN Infrastructure Fund and is managed by ADB. The new funding will add to the $1.4 billion in co-financing commitments already pledged to the ACGF since 2019, bringing total pledges to the facility to $2 billion.
“ASEAN countries have a unique opportunity to build a green and inclusive future after the COVID-19 pandemic,” said ADB President Masatsugu Asakawa, who attended the launch event with ministers and senior officials from ASEAN and partner countries. “The ASEAN Green Recovery Platform will help accelerate the flow of investments to support climate-resilient, environmentally sustainable infrastructure projects in Southeast Asia and boost sustainable, equitable development.”
The original financing partners supporting ACGF include ACGF include ADB, Agence Française de Développement (AFD), the European Investment Bank, the German state-owned development bank KfW, and the Government of the Republic of Korea.
UK Foreign Secretary Elizabeth Truss said this year marks a new chapter in UK-Asean relations as UK became the regional bloc’s first new Dialogue Partner in 25 years.
Truss added they are working together to build stronger economic and investment relationships and tackle climate change.
“The £110 million of UK funding for the UK-ASEAN Catalytic Green Finance Facility Trust Fund will help deliver clean, honest, and reliable infrastructure into countries that urgently need it, drawing on UK expertise on green technologies and creating jobs across the UK,” she said.
Director-General for International Partnerships at the European Commission Koen Doens, GCF Executive Director Yannick Glemarec, and AFD Chief Executive Officer Remy Rioux also spoke at the launch.
The Green Recovery Platform is expected to provide financing and financing and technical assistance to reduce investment risks and catalyze public and private financing for green infrastructure projects that create jobs and bolster growth.
It will also support the efforts of ASEAN developing member countries to reach their climate goals under the Paris Agreement and help them strengthen green capital markets, such as by expanding the issuance of green and climate bonds.