In the Loop

Sources of facts abound. Databanks are aplenty. "In the Loop" is a section that provides easy, relevant information mainly to network members of the NGO Forum. It's all about facts and figures. Less words and more proof! It's also because there is more meaning to reading than just memorizing the numbers.

Not even remotely close:
Why the ADB’s touted carbon footprint reductions
are not as big as claimed

During the 41st ADB’s Annual Meeting in Madrid, Spain, the ADB heralded the launching of its $40-million Climate Change fund. According to Mr. Werner Liepach, Principal Director of ADB’s Office of Cofinancing Operations, “the purpose of the fund is to facilitate greater investments in developing countries in Asia and the Pacific to address the causes and consequences of global warming. Money from the fund will be used to provide grant financing for technical assistance, investment projects, research and other activities, and we welcome interested parties to participate in the fund.” A forty-million climate change fund. In absolute figures, this is quite a good come-on, a catchphrase for funders and investors. But what is the value of forty million compared to the Bank’s lending and investment portfolio?

Forty million is a dismal 0.68 % of the ADB’s total assistance to the transport sector. In 2007 alone, the ADB has extended a total of $ 5,849,252,846.

Forty million is an insignificant 0.11% of the cumulative transport sector assistance in the past four decades. Unbeknownst to many, the Bank extended a total of $35,840,153,768 transport sector assistance from 1968 to 2008.

Forty million is an irrelevant 0.18% of the aggregate ADB lending and investment portfolio to roads projects. A total of $21,418,160,000 was allocated to 432 roads projects.

The figures are significant and alarming considering that transport is the largest and fastest growing source of GhG emissions, and motorized vehicles are now the leading contributor in Asia to the greenhouse emissions.

All told, the ADB’s forty-million “goodwill” fund is meaningless and superfluous compared to its huge transport sector funding. Does ADB walk its talk? It’s pure noise.

To read a related article on ADB's failure in carbon footprint test, click here.