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Asian Development Bank gets $300m funding for green recovery projects

Out-Law News | 26 Mar 2021 | 2:14 am |

The Asian Development Bank (ADB) has received $300 million from the Green Climate Fund (GCF) to fund climate-resilient and environmentally sustainable economic recovery in south east Asia.

The money will be used for the Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility (ACGF) which  aims to help raise financing from development partners and private capital sources for green infrastructure projects worth over $4 billion in south east Asia.

ADB will prioritise investment projects in Cambodia, Indonesia, Laos and the Philippines.

John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Over the past few decades, much of south east Asia has been focused on economic growth. Sustainability and environmental considerations, whilst part of the development equation, were seldom policy priorities. As these economies mature, and public awareness of these issues increase, it is unavoidable that ASEAN needs to work to improve the environment across the grouping. The injection of these funds through the ADB will greatly assist in these efforts. Much needs to be done to subsidise green in economies where the absence of such assistance may continue to drive development towards lowest cost alternatives.”

The ACGF is an initiative of the ASEAN Infrastructure Fund that was launched in 2019 for green infrastructure investments in Southeast Asia. The GCF is a global fund that created to help developing countries solve the challenge of climate change.