Japan will contribute $25 million to countries in the Asia-Pacific region to address the issue of climate change through the Asian Development Bank’s new financing mechanism, Finance Minister Shunichi Suzuki said Thursday.
The funds will go to the Asia and Pacific Climate Innovation Facility, through which ADB plans to provide up to $15 billion in loans to spur action on the issue in a region vulnerable to climate-related disasters.
„In recent years, the region has been frequently damaged by extreme weather events and large-scale natural disasters caused by climate change. Therefore, a balanced approach towards adaptation is necessary in addition to mitigation measures,” Suzuki told a gathering. ADB’s Board of Governors.
Japanese Finance Minister Shunichi Suzuki attends the annual meeting of the Asian Development Bank in Incheon, near Seoul, on May 4, 2023. (Kyoto) ==Kyoto
Suzuki also emphasized the need to achieve „ambitious” net zero emissions targets while preventing or managing trade-offs between climate action and other key development objectives in sectors such as health and education.
Besides Japan, Denmark, South Korea, Sweden, Britain and the United States are the initial partners of ADB’s new financing program.
More than 40 percent of all climate-related disasters this century have occurred in the Asia-Pacific region, according to the ADB, which aims to provide $100 billion in climate finance to developing member countries between 2019 and 2030. .
Climate change is high on the agenda for Japan, which holds the rotating chairmanship of the Group of Seven. Other areas considered critical are debt-related issues and provision of universal health coverage.
In his speech, Suzuki acknowledged the heightened risks low- and middle-income countries face regarding credit crunch amid the Covid-19 pandemic and Russia’s invasion of Ukraine.
He welcomed the recent launch of an integrated debt restructuring plan for Sri Lanka’s crisis-hit bilateral creditors, with Japan, India and France announcing the start of the process in April. China is also a major creditor.
„Improving credit data transparency and accuracy is essential to prevent future credit crises,” the minister added.