The Asian Development Bank (ADB) said Thursday it doubled to $1 billion the amount of climate financing from its private sector operations in 2023, with 75 percent of its projects including climate-related funding.

Cited Development Effectiveness Report of Private Sector Operations 2023, ADB said it committed a record 40 private sector transactions worth $1.7 billion through its own capital resources in 2023, 54 percent higher than the previous year.

According to ADB, its long-term cofinancing with the private sector reached $3.4 billion, reflecting its focus on mobilizing private capital to address development priorities such as climate change.

ADB realized $2.7 in long-term cofinancing for every $1 of its own private sector commitments, significantly more than the previous year’s $1.8 cofinancing ratio.

“Our results show that ADB is a trusted development partner of the private sector, which will play a crucial role in providing the resources this region needs to address its key development challenges,

“In 2023, ADB led the financing of major development projects, making them attractive to investors and helping developing member countries to achieve their climate and other development goals,” said ADB Vice-President for Market Solutions Bhargav Dasgupta.

With the Japan International Cooperation Agency, ADB launched the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), with capital up to $1.5 billion.

This fund follows the success of the initial LEAP fund initiated in 2016, and provides cofinancing for high-quality, climate-resilient, and sustainable infrastructure projects.

ADB committed 25 private sector projects in frontier economies and new and challenging sectors in 2023—making up 63 percent of all projects for the year—as part of an ongoing effort to diversify its private sector operations.

Its Trade and Supply Chain Finance Program facilitated over $4.7 billion through over 21,000 trade and supply transactions.

Projects committed in 2023 are expected to benefit 170,800 micro, small, and medium-sized enterprises (MSMEs), nearly 98,000 of them led by women. Agribusiness projects will support the livelihoods of nearly 77,000 farmers.

It is noted that ADB’s active private sector portfolio has created over half a million jobs; benefited 36.9 million MSMEs, and reduced greenhouse gas emissions by 22.2 million tons of carbon dioxide equivalent.

ADB said it is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Established in 1966, ADB is owned by 68 members—49 from the region.

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