UK to give Asian Development Bank guarantee to unlock climate finance

London: Britain will next month provide a guarantee for the Asian Development Bank (ADB) to help unlock more than US$1 billion of climate finance for developing countries, Foreign Secretary David Lammy said on Tuesday.

Earlier this month, the ADB said it had approved a new goal to devote 50 per cent of its annual lending to climate finance by 2030 and boost financing of private sector projects as part of a strategy update for the rest of the decade.

“I’m determined to restore Britain’s reputation for commitment and innovation in the world of development finance. This starts with the multilateral development banks,” Lammy said in a speech on climate change at London’s Kew Gardens.

“That’s why next month, I will lay before parliament a UK guarantee for the Asian Development Bank, which will unlock US$1.2 billion in climate finance from the bank for developing countries in the region.”

Lammy noted that, subject to reforms, Britain also supported a capital increase for the International Bank for Reconstruction and Development as a key source of climate finance.

Wealthy nations have a commitment to provide US$100 billion each year in climate finance to developing countries to help them cope with climate change, and the COP29 United Nations climate summit in November is tasked with agreeing a new funding target.