MANILA, PHILIPPINES, Sept 8: The Asian Development Bank (ADB) has approved an ambitious new strategy to guide its evolution and enhance support for key challenges in Asia and the Pacific. This includes intensified efforts to combat climate change and expand private sector development.

The ADB’s Strategy 2030 Midterm Review, an update of its corporate strategy, details how the bank plans to adapt to a rapidly evolving development landscape and address challenges that threaten its vision for a prosperous, inclusive, resilient, and sustainable region.

“Cascading shocks have disrupted years of development progress in Asia and the Pacific. The ADB is updating its vision, expanding its financial capacity, and modernizing its operational approach to help its members navigate these unprecedented challenges, including the escalating climate crisis, public health emergencies, and economic vulnerabilities,” said ADB President Masatsugu Asakawa. “Our support is needed now more than ever. This new road map sets a high level of ambition and focus for ADB’s work, ensuring bold action and transformative impact.”

The review refines the ADB’s strategic focus and establishes new corporate targets. The ADB will prioritize five critical areas: climate action, private sector development, regional cooperation and public goods, digital transformation, and resilience and empowerment. This enhanced focus will guide staff and resource allocation for maximum impact.

To address climate change, the ADB aims to direct 50 percent of its total annual financing to climate finance by 2030, targeting over $100 billion in cumulative climate finance from 2019 to 2030.

In terms of private sector development, the ADB plans to reach $13 billion in total private sector financing by 2030, tripling current levels. This includes a minimum of $4.5 billion in direct private capital mobilization. Additionally, the ADB targets 40 percent of sovereign operations to contribute significantly to private sector development by 2030.

These initiatives build on the ADB’s ongoing efforts to enhance its funding capacity and improve efficiency. In September 2023, the ADB approved capital management reforms, unlocking $100 billion in new funding capacity over the next decade. These reforms increase the bank’s annual new commitment capacity to over $36 billion, a rise of approximately $10 billion or about 40 percent.

In June 2023, the ADB began implementing significant reforms to its operational model, enhancing its role as the region’s climate bank, strengthening private sector development, and modernizing its approach to be more responsive and client-focused.

Established in 1966 and owned by 68 members-including 49 from the region, the ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty.

 
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