In Short : The Asian Development Bank (ADB) and Bank Internasional Indonesia (BII) have jointly launched a new Green Trade Finance Partnership for Asia and the Pacific. This initiative aims to promote environmentally sustainable trade and contribute to green financing practices across the region, fostering a more sustainable and resilient economy.
In Detail : MANILA, PHILIPPINES : The Asian Development Bank (ADB) and British International Investment (BII), the United Kingdom government’s development finance institution and impact investor, have launched a new trade finance partnership to promote green trade in Asia and the Pacific. Managed by ADB’s Trade and Supply Chain Finance Program (TSCFP), the initiative will prioritize renewable energy, energy efficiency, and climate-smart agriculture to help reduce dependency on fossil fuels.
ADB and BII will enter into a risk-sharing agreement to help international banks increase their financing support to local banks. This support will initially focus on Viet Nam transactions and will be subsequently extended to other countries supported by ADB and BII. This partnership will provide financing for local importers of solar panels, wind turbines, electric vehicles, and agricultural goods, supporting the region’s transition to cleaner sources of energy.
“As Asia’s climate bank, ADB is committed to supporting green, climate-smart, and sustainable trade to reduce climate impacts by promoting the transition to renewable energy sources,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Partnerships like this with BII demonstrate ADB’s leadership in convening multilateral institutions to deploy trade financing solutions that promote sustainable, trade-based international development.”
The financing partnership with BII is part of TSCFP’s mission to make global trade and supply chains green, inclusive, resilient, and socially responsible. It also boosts TSCFP’s work in reducing the global trade finance gap, estimated at more than $2.5 trillion annually, by bringing new trade financing capacity to market.
“Green trade finance enables supply chain development of the renewable energy industry and tackles the bottleneck for much needed long-tenor financing in the region,” said BII Managing Director and Head of Asia Srini Nagarajan. “We are delighted to work with ADB on a shared ambition to support the region’s energy transition and build climate resilience.”
Backed by ADB’s AAA credit rating and working with more than 250 partner banks, TSCFP is growing trade and supply chains through loans and guarantees to stimulate economic development in Asia and the Pacific.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
