ADB Commits $50M to Actis Asia Climate Transition Fund to Boost Clean Energy

The Actis Asia Climate Transition Fund will channel investments into companies involved in renewable energy, energy solutions, and sustainable transportation.

The Asian Development Bank (ADB) has announced a $50 million commitment to the Actis Asia Climate Transition Fund, an infrastructure fund managed by Actis, a leading global sustainable infrastructure investor. This investment is aimed at accelerating the transition to clean energy and addressing the developmental challenges posed by climate change across Asia and the Pacific.

Focus on Renewable Energy and Sustainable Transportation

The Actis Asia Climate Transition Fund will channel investments into companies involved in renewable energy, energy solutions, and sustainable transportation. Typical investment sizes will range from $50 million to $200 million per company. This strategic focus aligns with the broader goal of enhancing climate resilience and supporting sustainable development in the region.

Addressing Climate Vulnerabilities

Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted the pressing climate challenges faced by Asian economies: “Several Asian economies are vulnerable to rising sea levels, extreme weather events, and biodiversity losses. ADB’s investment in the fund will help address these vulnerabilities by advancing efforts to build climate-resilient infrastructure and adopt climate-smart technologies in Asia and the Pacific.”

Commitment to Net-Zero and Gender-Inclusive Practices

The investment will support investee companies in developing net-zero plans that align with the Paris Agreement. Companies will be guided on credible pathways to reduce emissions and achieve sustainability targets. Moreover, ADB's investment will incorporate a gender lens investing approach, aiming to enhance gender-inclusive practices within the investee companies. This approach underscores the importance of promoting gender equality alongside environmental sustainability.

 

ADB’s $50 million commitment to the Actis Asia Climate Transition Fund represents a significant step towards fostering clean energy and sustainable infrastructure in Asia and the Pacific. By targeting investments in renewable energy, sustainable transportation, and energy solutions, the fund aims to mitigate the adverse impacts of climate change and promote sustainable economic development in the region. The dual focus on climate resilience and gender inclusivity further strengthens the fund's potential to drive holistic, sustainable progress.