ADB charts course for sustainable growth with strategy 2030, unveils strategy at World Energy Congress
Apr 26, 2024
New Delhi [India], April 26 : The Asian Development Bank (ADB) reaffirmed its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific during its participation at the 26th edition of the World Energy Congress.
According to ADB, under its Strategy 2030, ADB continues to sustain efforts to address the changing needs of the region through innovative initiatives and strategic reforms.
The ADB's Strategy 2030 sets out seven operational priorities and other focus areas such as expanding private sector operations, catalyzing financial resources, and strengthening knowledge services.
In 2023, ADB delivered total commitments of USD 23.6 billion, continuing its robust support for the region's development needs. This included significant disbursements of USD 17.8 billion.
ADB's Ordinary Capital Resources (OCR) reported a net income of USD 938 million in 2023, with an allocable net income of USD 1,423 million.
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's lending operations continued to grow, with loans outstanding reaching USD 151.0 billion by the end of 2023.
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 USD 100 billion in new funding capacity over the next decade. T
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. This model aims to deliver USD 100 billion in cumulative climate finance from 2019 to 2030, strengthen private sector development, provide high-quality development solutions for member countries, and modernize 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.
These initiatives underscore ADB's commitment to addressing the region's most pressing challenges and advancing sustainable development across Asia and the Pacific.
