An article by Mr. Masatsugu Asakawa, the President of the Asian Development Bank, says the Asia and Pacific region stands at a critical juncture, positioned both as a significant contributor to global greenhouse gas emissions and a potential leader in transformative climate action.
“ADB alongside our member countries, is steering the region towards a sustainable future through support for a just transition. Our vision aims to reorient economic and social frameworks to foster low-carbon, climate-resilient growth that enhances prosperity and inclusion,” Mr. Asakawa noted.
The need for a just transition, one that puts people at the center of the shift to net zero, reportedly cannot be overstated. Asia and the Pacific account for over half of the world’s annual greenhouse gas emissions, driven by its dependence on fossil fuels. At the same time, more than 200 million people in the region are impoverished, with many lacking access to basic electricity and relying on traditional biomass for cooking and heating. Women are particularly affected, and often face disproportionate impacts.
According to him, ADB prioritizes an inclusive approach to ensure that the costs and benefits of the transition to net zero are fairly distributed. “Achieving net zero requires us to restructure our economies and change the way we live and work. It is paramount that in this process, the burdens of change are not imposed on the most vulnerable and that the benefits of a low-carbon economy are both maximized and shared equitably,” said ADB president. “Ensuring that all segments of society, including women, share in these benefits is critical to the success of our just transition efforts.”
To create opportunities for inclusive and sustainable growth, ADB reportedly works with partners to implement robust policy frameworks, enhance institutional capacities and engage stakeholders through participatory processes. These just transition efforts align with global commitments such as the Paris Agreement, and at the country level we support our developing members in crafting policies and programs that respond to their unique climate challenges and development needs.
“At COP27, ADB launched a Just Transition Support Platform to help drive a just transition within our developing member countries. This platform focuses on supporting countries to incorporate just transition into their institutional and policy frameworks and identify innovative financing approaches that attract public and private capital for a just transition. The platform also supports the mainstreaming of just transition in ADB’s operations,” said Mr. Asakawa. “Moreover, at COP28, ADB launched an inclusive process to design a Just Transition Finance Facility that will provide targeted finance to address the socio-economic challenges of the transition to net zero. It will help countries realize the economic and social benefits of the transition and ensure these benefits are inclusive and widespread, ultimately supporting a robust and equitable shift to low-carbon and resilient economies.”
Just transition is reportedly also a core part of ADB’s Energy Transition Mechanism (ETM). Developed in partnership with ADB member countries, ETM is a scalable initiative that has the potential to be one of the largest carbon-reduction programs in the world. Under it, public and private investments – from governments, multilateral banks, private sector investors, philanthropies and other long-term investors – finance country-specific ETM funds. These funds are reportedly designed to retire or repurpose coal power assets on an earlier schedule compared with a business-as-usual timeline.
“Just transition principles are a cornerstone of ETM’s implementation, helping us to ensure that potential negative socio-economic impacts are minimized through policies and programs,” says ADB president. “For example, retraining and reskilling programs provide new opportunities in emerging industries for women and vulnerable workers.”
