ADB and AFD Double Down on Asia-Pacific Sustainability with $6 Billion Pact
The Asian Development Bank (ADB) and France’s Agence Française de Développement (AFD) have officially doubled their joint cofinancing target to a staggering $6 billion for 2026–2028, up from their current three-year goal of $3 billion. This move marks a significant acceleration in their shared mission to foster sustainable development and climate resilience across the Asia-Pacific region.
Signed in Paris by ADB President Masato Kanda and AFD CEO Rémy Rioux, the renewed commitment reflects a deepening alignment between the two institutions on key priorities: clean energy, sustainable transport, nature-positive investments, and inclusive growth.
“AFD is a trusted partner of ADB, and our strengthened collaboration shows how we can translate shared goals into real results for people and the planet:” noted Mr. Kanda. “Doubling our cofinancing ambition to $6 billion is a decisive step in our support for Asia and the Pacific’s transition to low-carbon, resilient growth.”
Building on momentum
This ambitious new target builds on the momentum generated since the Partnership Framework Agreement was signed in October 2022. In under two years, the duo has already mobilised $4.64 billion in joint financing—surpassing their original $3 billion benchmark. That includes $3.2 billion from ADB and $1.44 billion from AFD, underscoring a well-balanced and effective cooperation model.
“Our partnership with ADB is a cornerstone of AFD’s international development cooperation in Asia:” said Mr. Rioux. “Together, we are demonstrating how public development banks can work as a system to deliver solutions at scale.”
From hydropower projects in Southeast Asia to modernised transit systems in South Asia, this collaboration is already making a visible impact. The new target, however, sends a clear message: they’re not done yet.
Priorities that matter
The updated agreement is more than a figure. It’s a statement of intent. By focusing on priority areas such as clean energy and nature-positive solutions, the cofinancing framework is positioning itself at the heart of the region’s green transition.
- Clean energy: Supporting renewable power generation, energy efficiency upgrades, and off-grid solutions.
- Sustainable transport: Financing electrified public transit, railways, and inclusive urban mobility schemes.
- Nature-positive projects: Backing biodiversity conservation, climate adaptation, and circular economy ventures.
- Inclusive development: Promoting gender equality, affordable housing, and access to basic services in vulnerable communities.
Asia-Pacific countries, many of them among the most climate-vulnerable in the world, have made it abundantly clear: they need financing that is fast, flexible, and focused. ADB and AFD are stepping up to the challenge.
Streamlining for scale
Another key element of the agreement is improved operational coordination. Rather than working in silos, both institutions are now doubling down on joint project preparation and harmonised processes. This streamlining helps reduce transaction costs for developing member countries and makes implementation smoother and faster.
The joint approach benefits local governments too. It means fewer hoops to jump through, quicker access to funds, and better technical support during execution. For fragile or low-capacity nations, that can make all the difference.
Moreover, both ADB and AFD are increasingly integrating digital platforms, climate risk analytics, and data-driven monitoring into their project pipelines. This tech-savvy approach brings transparency and measurable impact into focus.
Strategic timing and global alignment
The timing of this expansion is no coincidence. It comes just ahead of the next ADB-AFD high-level summit in September 2025, scheduled to take place at ADB’s headquarters in Manila. This meeting will serve as a critical checkpoint to assess progress, align priorities, and evaluate future joint ventures.
The announcement also dovetails neatly with broader global development trends. With institutions like the World Bank and the European Investment Bank also pushing for stronger South-South and trilateral cooperation, the ADB-AFD pact is a practical demonstration of what effective multilateral collaboration can look like.
Interestingly, both agencies are active members of the Finance in Common coalition, which brings together more than 500 public development banks worldwide. Their cooperation reflects a growing consensus: climate and development challenges must be tackled through unified systems rather than isolated efforts.
A model for others?
ADB and AFD are quietly crafting a blueprint that other multilateral institutions may soon follow. The idea is simple, yet powerful: by aligning financial flows, sharing technical expertise, and coordinating operations, public banks can move faster and farther together.
Their collaboration also sends a positive signal to private sector players. With large-scale cofinancing already in play, the door is open for blended finance models where public money helps de-risk and catalyse commercial investment in high-impact projects.
Beyond infrastructure, the partnership may also be extended to digitalisation, disaster preparedness, food systems, and even pandemic resilience. With the flexibility embedded in their renewed framework, there’s room for adaptability as new challenges and opportunities arise.
Investing in impact
At its core, the ADB-AFD partnership isn’t just about dollars and cents. It’s about outcomes that matter: safer roads, greener grids, inclusive cities, and stronger communities. And with a $6 billion commitment on the table, the scale of ambition is finally matching the scale of need.
In a world grappling with climate upheaval, energy shocks, and rising inequality, public development banks must lead with purpose and agility. The ADB-AFD pact stands as a testament to what can be achieved when purpose, planning, and partnership come together.
“This $6 billion commitment is both a sign of our trust in each other and of our shared ambition to respond to the region’s most pressing challenges:” said Mr. Rioux. It’s hard to disagree.
Shared Vision, Real Results
As the Asia-Pacific region navigates an era of heightened climate risk and economic transformation, partnerships like that of ADB and AFD will play an outsized role. This isn’t about ticking boxes or chasing targets; it’s about reshaping the development landscape for generations to come.
By bolstering their financial commitment and sharpening their operational toolkit, ADB and AFD are making a clear statement: development done right is development done together.
