ADB to provide concessional loan to India under green financing facility

Masasugu Asakawa, the president of the Asian Development Bank on Sunday committed to providing concessional finance for India under its green financing facility, according to a statement by the ministry of finance. Asakawa met finance minister Nirmala Sitharaman at the sidelines of the G20 Summit on Sunday. 

"Mr. Asakawa @ADBPresident reiterated that @ADB_HQ aims to be the climate bank for the Asia and Pacific and committed that a #GreenFinancing facility is being developed by @ADB_HQ for providing concessional finance for India to realise this vision," a post by finance ministry on X (formerly twitter) states.

"Mr. Asakawa @ADBPresident also recognised India's growing contribution to ADB's Asian Development Fund to help ADB's poorest and most vulnerable Developing Member Countries," it adds.

Asakawa also assured support to initiatives such as PM Gati Shakti, GIFT City and Green Hydrogen Hub, and future cities of India amongst others through ADB's Country Partnership Strategy 2023-27 for India.

"Union Finance Minister Smt. @nsitharaman mentioned that the role of all #MDBs, including @ADB_HQ, in the preparation of the International Financial Architecture Working Group's #G20 Roadmap, has been crucial and emphasised the need for the additional push by the #MDB ecosystem as well as the relevant stakeholders to step up the implementation of Capital Adequacy Framework #CAF measures," the finance ministry says.

Following his meeting with Sitharaman, Asakawa commended India’s "G20 Declaration’s strong support for climate action, inclusive growth, leaving no one behind, and multilateral development banks reforms."

"I reiterated ADB's commitment to help advance the agenda beyond India's presidency to ensure it leads to tangible results as an enduring legacy of the country's leadership. We also discussed India's economic progress, the significant positive impact it will have on the region and beyond, and ADB's strong support to help the country achieve its ambition of a green, climate-resilient, and inclusive economy," Asakawa says in a post on X.

Notably, the UK Prime Minister Rishi Sunak also announced an investment of $2 billion in the green climate fund.

The three-day G20 Summit under India's presidency concluded on September 10. In his closing remarks, PM Modi proposed to hold a virtual session between G20 countries in November to review the suggestions made during the three-day summit.

During the summit, the leaders of the G20 countries adopted a unanimous G20 New Delhi Leaders Declaration which committed to accelerate strong, sustainable, balanced and inclusive growth. The consensus document is considered to be a major feat for India's G20 Presidency.