Azerbaijan to gain access to ADB climate financing facility

The president of the Asian Development Bank (ADB) has approved the provision of technical assistance not exceeding the equivalent of $750,000 on a grant basis for Supporting Regional Actions to Address Climate Change under the Central Asia Regional Economic Cooperation (CAREC) Program, Report informs referring to ADB.

The combined climate pledges made by countries, if all implemented, would result in a global temperature increase of 2.5°C by the end of the century - way above the goal of limiting global warming to 1.5°C.

“National governments must strengthen and implement their climate action plans by 2030 to keep this goal alive. It is important to note that climate change disproportionately affects vulnerable groups, including women, people with disabilities, rural communities, and those with limited access to economic opportunities.

The Paris Agreement has formalized the recognition of the climate challenge, and actions are being taken globally, regionally, and nationally. However, these efforts are not yet enough. As a development bank, the Asian Development Bank (ADB) is committed to taking action to address climate change. ADB recognizes the need for reforms by multilateral development banks to increase financing capacity and mobilize private capital to contribute to climate change goals. By working together, countries and development partners can significantly mitigate the effects of climate change and protect vulnerable communities,” reads the bank’s consolidated report.

The CAREC countries are already facing severe impacts of climate change, and the situation is expected to worsen in the future. In 2022-2023, the region witnessed a series of catastrophic events directly linked to climate change. These included the devastating floods in Pakistan, the punishing droughts in Afghanistan and the People’s Republic of China, the wildfires and dzud (summer drought followed by severe winter) in Mongolia, and the unprecedented heatwaves in Kazakhstan and other Central Asian countries.

“These events are a stark reminder of the long-term prospects of even more severe impacts of climate change on human lives and economies. Countries within the region must take urgent steps to mitigate carbon emissions and increase their resilience to withstand the worsening impacts of climate change over the coming decades,” the bank noted.

The TA (technical assistance) team will prepare project concepts and enable resource mobilization from available regional and global climate finance sources for the prioritized regional climate investments. The climate finance resources include the CAREC Climate and Sustainability Project Preparatory Fund, which is planned to be launched in 2024.

During the period from the first quarter of 2024 to the fourth quarter of 2025, it is planned to create a CAREC regional climate working group; during the third quarter of 2024 to the fourth quarter of 2025, it is planned to develop a structure for interdepartmental climate cooperation in the CAREC region. During the first quarter of 2024 to the fourth quarter of 2026, regional low-carbon and climate-resilient investments in the CAREC region will be identified. To this end, it is planned to organize at least one knowledge-sharing workshop on mobilization and access to climate financing for government officials.

The list of climate change investments/projects under the CAREC regional climate working group should be prepared during the first quarter of 2024 - the fourth quarter of 2026.

In addition, at least one CAREC climate change project concept with climate financing from other sources will be prepared (during the second quarter of 2024 – the fourth quarter of 2026).

Technical assistance will cover Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, China, Tajikistan, Turkmenistan and Uzbekistan.