Current Affairs - Finance - Discussion

The Asian Development Bank (ADB) has significantly enhanced its climate lending capabilities by $7.2 billion, thanks to guarantees from the United States ($1 billion) and Japan ($600 million) on existing loans. This increased financial capacity enables ADB to support critical climate-related projects, such as a $90 million sustainable aviation fuel initiative in Pakistan, which is half-funded by the ADB. The guarantees provide financial flexibility and underscore the vital role of Multilateral Development Banks (MDBs) in scaling up climate finance, particularly in the lead-up to COP29. This move demonstrates ADB's commitment to addressing climate change and promoting sustainable development.