ADB, BII launch partnership to promote green trade in Asia-Pacific, including Vietnam
ADB, BII launch partnership to promote green trade in Asia-Pacific, including Vietnam
The Asian Development Bank (ADB) and British International Investment (BII), the UK government’s development finance institution and impact investor, have established a new trade finance partnership to promote green trade in Asia and the Pacific, consisting of Vietnam.
A wind farm in Vietnam. Photo: Nam Trung / Tuoi Tre |
The initiative, managed by ADB’s Trade and Supply Chain Finance Program (TSCFP), will prioritize renewable energy, energy efficiency, and climate-smart agriculture to help reduce dependency on fossil fuels.
The risk-sharing agreement between ADB and BII will help international banks increase their financing support to local banks, initially in Vietnam before being extended to other countries supported by ADB and BII.
This pact 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 ADB representative added.
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.
According to BII Managing Director and Head of Asia Srini Nagarajan, 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.
“We are delighted to work with ADB on a shared ambition to support the region’s energy transition and build climate resilience.” Nagarajan said.
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.
