COP26: EU supports green economic recovery in ASEAN

Illustrative image (Photo: adb.org)

Jakarta – Director-General for International Partnerships at the European Commission Koen Doens has highlighted the crucial role of programmes such as the ASEAN Catalytic Green Finance Facility (ACGF) in supporting green recovery in Southeast Asia.

According to the Delegation of the European Union (EU) to ASEAN, Doens stated this at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, the UK on November 2.

He said the ACGF, which was established by the ASEAN Infrastructure Fund and managed by the Asian Development Bank (ADB), will receive a contribution worth 50 million EUR (over 57.9 million USD) from the EU.

With pledges from the European Investment Bank (EIB), Germany’s Kreditanstalt für Wiederaufbau (KfW), the Agence Française de Développement (AFD), and the Italian state lender Cassa Depositi e Prestiti, the total contribution of Europe to the ACGF now reaches 783 million EUR (906 million USD).

Support from development partners for the ACGF is expected to mobilise 7 billion EUR for low-carbon and climate-resilient infrastructure projects in Southeast Asia, accelerating the region’s post-pandemic recovery.

To date, co-financing partners have pledged a total of 1.7 billion EUR (8.11 billion USD) to the facility.

Doens said the ACGF will help ASEAN countries build greener, fairer, and more sustainable economies, adding that the EU and its member states are committed to supporting a comprehensive and environmentally friendly post-pandemic recovery in the region.

The contribution to the ACGF is part of EU-ASEAN cooperation on environment and climate change under the Strategic Partnership, which, in addition to sustainable finance, includes biodiversity; forest governance, law and trade; sustainable use of peatlands and haze mitigation; emergency response; and smart cities.