The Asian Development Bank (ADB) and British International Investment (BII), the UK government's development finance institution and impact investor, today announced a new trade finance partnership aimed at promoting green trade in the Asia-Pacific region. . The cooperation, managed by ADB's Trade and Supply Chain Finance Program (TSCFP), will prioritize renewable energy, energy efficiency, and climate-smart agriculture to reduce dependence on fossil fuels.
Under the partnership, ADB and BII will enter into a risk-sharing agreement to facilitate increased financing support for domestic banks by international banks. Initially, the initiative focused on trade in Vietnam, but will later be expanded to other countries with support from ADB and BII. The partnership aims to provide financing to local importers of solar panels, wind turbines, electric vehicles and agricultural products, thereby supporting the region's transition to cleaner energy sources.
ADB Private Sector Director Suzanne Gabouly highlighted ADB's commitment to promoting sustainable trade-based international development. “As Asia's climate bank, ADB is committed to supporting green, climate-smart and sustainable trade to reduce climate impacts by accelerating the transition to renewable energy sources,” he said. “
The partnership with BII aligns with TSCFP's mission to promote global trade and supply chains that are green, inclusive, resilient and socially responsible. It will also contribute to TSCFP's efforts to address the global trade finance gap, estimated at more than $2.5 trillion annually, by bringing new trade finance capabilities to the market.
BII Managing Director and Head of Asia Srini Nagarajan highlighted the importance of green trade finance in promoting supply chain development in the renewable energy sector. He expressed BII's eagerness to work with ADB to support the region's energy transition and strengthen its resilience to climate change.
Backed by ADB's AAA credit rating and working with over 250 partner banks, TSCFP aims to stimulate economic development in the Asia-Pacific region by facilitating trade and supply chain growth through financing and guarantees. Masu.
Founded in 1966 and owned by 68 member countries (49 in the region), ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific region while continuing its efforts to eradicate extreme poverty. We are continuing to make steady efforts towards this goal.
