The Asian Development Bank’s (ABD’s) president, Masatsugu Asakawa, has said that the bank plans to launch funds in countries that rely heavily on coal, such as Indonesia, to facilitate early closures of power plants.

“To coincide with the UN COP26 climate summit, the ADB will revise its energy policy,” Mr Asakawa told the Nikkei Asian Review on October 6. “For a start, we will stop extending loans to build new coal-fired power plants. We will also establish funds to help retire existing plants before the end of their life cycles.” 

The funds will be financed with government grants and long-term, low-interest loans and solicit investments from financial institutions, according to Nikkei, with several lenders believed to be showing interest. 

Under Strategy 2030, ADB aims to deliver $80bn in climate financing by 2030 and to ensure that at least 75% of its operations will feature climate adaptation and mitigation initiatives.