ADB says Asia, Pacific region lost $67b in climate-related disasters in 2020

The Asian Development Bank (ADB) has said that it experienced physical losses worth billions of US dollars due to climate-related events in 2020 alone in Asia and the Pacific, however, the region faced a disaster loss of $67 billion during this time.

To stop the physical losses and to stop its contribution in polluting world, the multilateral donor has said that it will expand investments in renewable energy options, and will not invest in coal.

Masatsugu Asakawa, President, Asian Development Bank, at the President's press conference at the 56th Annual Meeting on 2 May 2023 has announced the ADB's position over climate issue at Incheon, Republic of Korea.

"Since 2000, more than 40 per cent of climate-related disasters occurred in Asia and the Pacific. Over 3.5 billion people have been affected, with close to one million deaths. By 2050, another 1 billion people living in urban areas in our region will suffer from harmful air pollution and heat stress, if we don't act, the increase in annual losses will outpace the region's GDP growth," Masatsugu Asakawa said.

With the announcement of the ADB's top boss, the Asian Infrastructure Investment Bank have also signalled that they will no longer support coal.  

 "We aim to deliver $100 billion in climate finance to our developing member countries between 2019 and 2030. We will fully align all our operations with the Paris Agreement by no later than 2025," he said.

Bangladesh currently has an installed power generation capacity of 22,482 MW. Gas accounts for 49 per cent of this, followed by heavy fuel oil 28 per cent, coal 10 per cent, and high-speed diesel 6 per cent. Hydropower and solar account for only 1 per cent each.

According to the Power Division, sixty per cent of funding for the country's energy projects has come via the Bangladesh government, which has got much of this money from organisations like the World Bank, Asian Development Bank, Japan International Cooperation Agency and US Agency for International Development. The other 40 per cent comes from private investors, including India's Adani group, foreign direct investors and local companies.

"The ADB and the Global Energy Alliance for People and Planet (GEAPP) on 14 April 2023 in Washington, DC has formalized a $35 million contribution from GEAPP Energy Access and Transition Trust Fund (GEATTF). The eligible countries are Bangladesh, India, Indonesia, Pakistan, and Vietnam. GEATTF allocations could cover up to 50 per cent of technical assistance and investment grants alongside ADB's own resources," a senior official of the ADB Dhaka office said.

The preliminary planned GEATTF allocation for Bangladesh is $3.5 million. That allocation could be used to support feasible floating solar and energy efficiency projects that aim to further Bangladesh innovative and transformational clean energy solutions. Beneficiaries may be central and local governments, government agencies, and private sector and other entities eligible to receive assistance from ADB, he added.

"We are launching a new programme that will dramatically expand our capacity to respond to climate change.  It will be the first ADB financing vehicle to serve as a one-stop shop for climate finance.

 This will make climate action across sectors and regions possible. And it will support both infrastructure and reforms that address climate changes issues," Masatsugu Asakawa, ADB President announced.

The energy sector currently accounts for about 55 per cent of Bangladesh's greenhouse gas emissions, followed by agriculture, forest and land use, waste and industrial processes. By 2030, the UN expects energy to account for more than 76 per cent of Bangladesh's emissions.