ADB will no longer finance coal-fired projects

The Asian Development Bank (ADB) announced to be abstained from financing any coal-fired power and energy projects in the future, instead choosing to lend to the renewable energy sector.

ADB President Masatsugu Asakawa on Tuesday made the announcement at a press conference organised as part of the 56th annual meeting of the regional development bank in Incheon, South Korea.

He discussed various issues related to the event and responded to queries from journalists.

The ADB chief also announced a new loan programme, the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), to address the climate change crisis in the region.

Asakawa said Asia and the Pacific are the most affected regions by the climate change crisis and they will either win or lose in the global war on climate change.

If no initiative is taken to combat the adverse effects of climate change, the damage will exceed total growth, he said, adding that climate change caused damage worth $67bn last year.

He went on to say that around 40% of climate change-related disasters since 2000 have taken place in the Asia and the Pacific region, affecting more than 3.5 billion people and resulting in nearly 1 million deaths.

By 2050, another billion people living in urban areas are expected to be exposed to harmful air pollution and heat.

As part of its efforts to combat climate-related crises in the region, the ADB president also declared that the regional bank has initiated a programme to provide $100bn in loans to countries in Asia and the Pacific region within 2030.