Tag: biodiversity

  • Germany backs ADB nature finance hub targeting $5b by 2030

    Germany backs ADB nature finance hub targeting $5b by 2030

    Germany has joined the Asian Development Bank (ADB)’s Nature Solutions Finance Hub as a financing partner, committing €5.5 million ($6.5 million) in grant cofinancing to support biodiversity and ecosystem projects across Asia and the Pacific.

    The funding, provided by Germany’s Federal Ministry for Economic Cooperation and Development and implemented by GIZ, will help the hub scale nature-based solutions and mobilise capital for projects focused on biodiversity protection, ecosystem restoration, and climate resilience.

    Launched in 2023, the ADB platform aims to catalyse at least $5 billion in nature-positive investments by 2030. It seeks to address two persistent constraints in nature finance: the lack of bankable projects and the limited availability of financial instruments capable of drawing private capital at scale.

    The hub is currently supporting nearly 20 ADB pipeline projects, including flood resilience in the Philippines, coastal ecosystem management in Thailand, river basin restoration in Bangladesh, and watershed rehabilitation in Uzbekistan.

    Germany joins a group of existing partners that includes Agence Française de Développement, the European Union, the OPEC Fund for International Development, the Global Environment Facility, and funds under the ASEAN Catalytic Green Finance Facility backed by the UK and the Green Climate Fund.

    The investment comes as development finance institutions seek to turn biodiversity and ecosystem protection into a larger investable asset class.

    ADB has said about 75% of Asia-Pacific GDP is generated by sectors that are moderately or heavily dependent on nature, including agriculture, forestry, fisheries, and tourism.

    The global nature finance gap exceeds $900 billion annually, underscoring the need for concessional capital, project preparation support, and blended finance structures to crowd in private investors.