ADB will not finance any coal mining, oil and natural gas field exploration, drilling or extraction activities. ADB will not finance any new coal-fired capacity for power and heat generation, or any facilities associated with new coal generation. Liquefied natural gas projects, gas transmission infrastructure, gas distribution pipelines and gas-fired power generation plants will be financed, but only if they fulfil strict criteria. Manila-headquartered bank stated its future funding intentions in its draft paper for consultation Energy Policy Supporting Low Carbon Transition in Asia and the Pacific.
The objective of the 2021 Energy Policy is to guide ADB’s energy sector operations to help developing member countries (DMCs) to develop sustainable and resilient energy systems to achieve, and even increase, their Paris Agreement commitments. The ADB gas pledged at least 75% of its committed operations, including sovereign and non-sovereign operations, will be designed to support climate change mitigation and adaptation by 2030. Under the policy, climate finance from ADB’s own resources will reach $80 billion cumulatively from 2019 to 2030.