ASIAN DEVELOPMENT BANK

• Headquarters: Located in Manila, Philippines.
• Status: Official UN Observer.

• Reducing poverty in Asia and the Pacific region.
• Provide Program Assistance that provides loans (hard/soft), technical assistance, and grants.
• Enhances effectiveness through policy dialogues, advisory services, and co-financing to mobilize additional financial resources.

• ADB raises funds primarily through bond issues on global capital markets.
• The ADB has set a climate finance target of $100 billion from 2019 to 2030. The U.S. will guarantee $1 billion of existing ADB loans, while Japan will underwrite $600 million.

Advantages of the Guarantee Structure:

• Expands ADB’s lending capacity.
• Lending space will be used over 5 years, while the guarantees will last for 25 years.
• Example: A sustainable aviation fuel initiative in Pakistan using cooking oil, with ADB covering about half of the $90 million cost.

• Total Members: 67 countries, with 48 from Asia and the Pacific.
• Membership Eligibility: Includes members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.
• Major Shareholders: Japan and the United States (Each hold 15.607% of shares), China ( 6.444%), India (6.331%), Australia (5.786%)

PYQ:

[2015] Which of the following statements regarding the ‘Green Climate Fund’ is/are correct?

1. It is intended to assist developing countries in adaptation and mitigation practices to counter climate change.

2. It is founded under the aegis of UNEP, OECD, Asian Development Bank, and World Bank.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2