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ADB sets climate finance record with $9.8 billion commitment in 2023

Published on 1st February 2024

The Asian Development Bank (ADB) has achieved a record commitment of $9.8 billion in climate finance in 2023, marking a more than 46% increase from the previous year.

The funding is aimed at helping developing member countries in Asia and the Pacific reduce greenhouse gas emissions and adapt to the impacts of climate change.

The ADB’s climate finance includes $5.5 billion for mitigation and $4.3 billion for adaptation.

President Masatsugu Asakawa emphasized the bank’s commitment to addressing climate change’s impacts on energy and food security, urging urgent and scaled action to achieve net-zero goals.

The ADB has surpassed its 2019-2024 adaptation financing target a year ahead of schedule, providing over $10.4 billion in cumulative adaptation financing from 2019 to 2023.

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Ulaanbaatar Issues First OTC Bond to IFC to Fund Battery Energy Storage System

Neelima N M

Published on 24th January 2025

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MUB, the Governor’s Office of the Capital City of Mongolia, successfully issued its first OTC market bond by way of a private placement with IFC. The funds raised will finance a 50 MW BESS project in Baganuur District. It will be contributing to enhanced power grid reliability for the country while providing integration space for a larger percentage of renewable sources into its power supply system.

Pioneering Municipal Investment

This is the first-ever non-sovereign guaranteed municipal bond of five years by Mongolia to an investor from outside its border, opening doors for foreign direct investment into sustainable infrastructure. In securing private funding, MUB will utilize the released public funds better as it sets up a new asset class for infrastructure projects to be undertaken in the future. On completion, BESS will deliver uninterruptible power supply up to four hours in a day for about 25,000 households.

Since half of the population of Mongolia lives in Ulaanbaatar, the city is struggling to increase its energy requirements along with environmental matters such as air and soil pollution, traffic congestion, and stable power supply.

Nyambaatar Khishgee, Mayor of Ulaanbaatar City and Governor of the Capital said, “Ulaanbaatar is rapidly expanding, and we must ensure our energy infrastructure keeps pace. The Baganuur BESS is a significant step toward a greener, more resilient future for our city, as it enables integration of more wind and solar energy into use.

He added, “By partnering with IFC and Envision Energy, we are demonstrating our commitment to harnessing innovative, world-class solutions that will benefit our growing population and help us meet our sustainability goals.”

IFC’s Support for Mongolia’s Energy Transition

This investment also includes funding from the Canada-IFC Blended Climate Finance Program. Notably, this marks IFC’s first municipal investment in the Asia Pacific region and aligns with the World Bank Group’s broader engagement in Mongolia’s energy transition. Additionally, the plan includes assessing Mongolia’s energy sector, funding a 188 km transmission line, and studying a 200MW grid-side battery storage project.

Also read: IFC Invests $200 Million in Ameriabank to Boost Climate Finance and Support MSMEs in Armenia

Innovative Energy Infrastructure

The Baganuur BESS consists of 27 battery blocks equipped with an advanced liquid cooling and battery management system. The project also includes a new substation, control building, transmission line, grid expansion, and access roads to enhance Mongolia’s power infrastructure. Moving forward, Ulaanbaatar City Development Corporation JSC will manage the facility’s operations.

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Indonesia and ExxonMobil Forge $10 Billion Partnership

Rishabh Srihari

Published on 24th January 2025

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Indonesia’s Coordinating Ministry for Economic Affairs has declared that it and ExxonMobil have inked a Memorandum of Understanding (MoU). The deal is expected to rake in an investment of nearly $10 billion.

The petrochemical industry is anticipated to undergo substantial changes as a result of the agreement. The deal will also encourage the advancement of carbon capture and storage (CCS) technology.

Advancing Petrochemical and CCS Development

The collaboration aligns with Indonesia’s broader strategy to enhance its downstream initiatives. It will also help foster job creation and help solidify the country’s commitment to sustainability.

Also read: Green Plains Reports Progress on Advantage Nebraska CCS Strategy

ExxonMobil has committed to offering extensive training sessions as part of the arrangement. The programs will help the Indonesian workers to develop the required skills and expertise. The intention is to train the workers so that they meet the global competency standards.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, displayed confidence in the collaboration. He believes there will be rapid progress and the project for petrochemical and CCS technology development will soon move into its implementation stage.

A Foundation for Long Term Partnership

The MoU will serve as a foundational framework for establishing a robust and collaborative partnership, including the formation of a Joint Task Force to effectively coordinate strategic actions and ensure the successful realization of this ambitious project.

Minister Hartarto reiterated that this collaboration is in perfect alignment with the government’s overarching objective of cultivating a business friendly and highly competitive investment climate.

He also expressed hope that the execution phase of this innovative petrochemical and CCS technology development project will soon begin. He underlined that this project is on track to become the nation’s first operational CCS project.

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ADB sets climate finance record with $9.8 billion commitment in 2023

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Ulaanbaatar Issues First OTC Bond to IFC to Fund Battery Energy Storage System

Pioneering Municipal Investment

IFC’s Support for Mongolia’s Energy Transition

Also read: IFC Invests $200 Million in Ameriabank to Boost Climate Finance and Support MSMEs in Armenia

Innovative Energy Infrastructure

Tags:

Indonesia and ExxonMobil Forge $10 Billion Partnership

Advancing Petrochemical and CCS Development

Also read: Green Plains Reports Progress on Advantage Nebraska CCS Strategy

A Foundation for Long Term Partnership

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