The Nordic Development Fund (NDF) has contributed €7 million to a newly established multi-donor trust fund—administered by the Asian Development Bank (ADB)— which will help Southeast Asian countries develop a robust portfolio of climate-resilient projects.
The Project Readiness Improvement Trust Fund will help countries to strengthen the climate adaptation and mitigation components of investment projects and improve project preparedness, in terms of design and procurement, for climate change impacts.
“This innovative financing arrangement will help ensure new projects are climate resilient and technically sound,” NDF Vice President and Deputy Managing Director Leena Klossner said during a ceremony to hand over NDF’s contribution to ADB.
The Fund’s support for better project preparation will also reduce start-up and implementation delays.
“Southeast Asia is highly vulnerable to climate change, so ensuring that projects build in climate resilience will deliver both economic and social dividends for the region’s people,” said James Nugent, Director General of ADB’s Southeast Asia Regional Department.
The Project Readiness Improvement Trust Fund supports ADB’s commitment to double its climate financing from $3 billion to $6 billion by 2020, improve developing member countries’ access to global climate change funds, and contribute to the achievement of their Intended Nationally Determined Contributions under last year’s Paris agreement to limit global warming.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in Asia. It is owned by 67 members – 48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.