Southeast Asian governments, the Asian Development Bank (ADB) and major development financiers on 4 April launched a new initiative to invest more than 1 billion USD in green infrastructure projects across Southeast Asia.

Garden by the Bay in Singapore - Illustrative image (Source: Eco-Business.com)

The “ASEAN Catalytic Green Finance Facility” initiative was kick-started at a meeting between Thailand’s Minister of Finance Apisak Tantivorawong, ADB President Takehiko Nakao, and senior officials from ASEAN and private sector partners in Chiang Rai, Thailand, on 4-5 April.

It provides loans and necessary technical assistance for sovereign green infrastructure projects such as sustainable transport, clean energy, and resilient water systems.

The facility will mobilise a total of 1 billion USD including 75 million USD from the ASEAN Infrastructure Fund (AIF), 300 million USD from ADB, 300 million EUR (336 million USD) from German Development Bank KfW, 150 million EUR from the European Investment Bank, and 150 million EUR from Agence Française de Développement.

ADB President Takehiko Nakao said that through the facility, ADB will support ASEAN governments in developing green and climate-friendly infrastructure projects that will contribute to fighting climate change, improving the quality of air and water, and reducing environmental degradation across the region.

The facility is part of a new “Green and Inclusive Infrastructure Window” under the AIF, a regional financing initiative established by ASEAN governments and ADB in 2011 and administered by ADB.

(Source: VNA)