BRUSSELS, BELGIUM: The European Union (EU) announced today it is preparing to support the Association of Southeast Asian Nations’ (ASEAN) Catalytic Green Finance Facility (ACGF) with €50 million ($54.9 million) to help governments prepare and catalyze public and private financing for climate-friendly infrastructure projects across Southeast Asia.
Launched in April 2019 and managed by the Asian Development Bank (ADB), the facility provides ASEAN governments with technical assistance and easier access to sovereign loans to finance infrastructure projects focusing on renewable energy and energy efficiency, sustainable urban transport, water supply and sanitation, and climate-resilient agriculture.
The EU infusion will come out of its Asia Investment Facility, according to EU Commissioner for International Partnerships Ms. Jutta Urpilainen, who made the announcement during the ASEAN–EU Dialogue on Sustainable Development along with ADB’s Representative to Europe Mr. Robert Schoellhammer.
“This commitment reflects the European Union and ADB’s deepening collaboration to help Southeast Asian countries achieve the United Nations’ Sustainable Development Goals,” said Mr. Schoellhammer.
Mr. Anouj Mehta, ACGF Unit Head at ADB’s Southeast Asia Regional Department, said: “Our joint support through the ASEAN Catalytic Green Finance Facility will help ASEAN member states fight climate change; improve air, soil, and water quality; and improve environmental protection.”
Southeast Asian countries face an annual financing gap of over $100 billion to meet its infrastructure needs. ACGF is part of the ASEAN Infrastructure Fund and is owned by ASEAN’s 10 member states and ADB. In addition to ADB and the EU, cofinancing partners for the facility include Agence Française de Développement, the European Investment Bank, German development cooperation through KFW, and the Government of the Republic of Korea. The first ACGF-supported project is expected to be approved later this year.
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.