Annual Report 2024

Tajikistan faces the threat of escalating disasters triggered by climate change. Melting glaciers, floods, droughts, and heat stress can lead to irreversible economic, social, and environmental damage, with food insecurity and other impacts most severe for women, children, and older people, especially in rural areas.

To address the intensifying climate crisis, ADB and the Government of Tajikistan launched a comprehensive climate finance plan for the country in 2024.

Estimating that Tajikistan requires $8 billion in climate finance by 2030, the plan identifies critical investments in energy efficiency and renewable energy, green transportation and industry, and waste management. Agriculture is a major focus, with substantial investments needed for climate-resilient irrigation, cropping, farming practices, soil protection, pest management, and reforestation.

To help Tajikistan take preparatory actions, ADB provided a $50 million policy-based grant to create a more climate-responsive business environment. The grant focuses on digitalization and improving trade, infrastructure governance, fiscal transparency, and opportunities for smaller businesses. Accompanying technical assistance will help the government implement policy, legal, and regulatory reforms.

In 2024, ADB also spurred Tajikistan’s momentum in renewable energy through Asian Development Fund grants of $21 million for hydropower in Khatlon Province and an additional $15 million toward reconnecting Tajikistan’s power system to the region’s integrated renewable energy network.

Part of the Yangtze River’s middle reaches in Hunan Province, Dongting Lake is the second-largest freshwater lake in the People’s Republic of China and an internationally important wetland.

In addition to regulating and storing the Yangtze River’s water, Dongting Lake provides a vital staging, wintering, and feeding ground for migratory waterbirds in the East Asian–Australasian Flyway, which stretches from Alaska to Australia and New Zealand.

However, poplar monoculture, reed farming, pollution, and overfishing have degraded the wetlands and reduced habitat for waterbirds and other species, with increasing drought risks posing further threats.

As the first demonstration project under its Regional Flyway Initiative, ADB committed $146 million in 2024 to support the ecological and environmental restoration of Dongting Lake. The project will help restore nearly 12,000 hectares of wetland and freshwater ecosystems by employing nature-based solutions, including developing shallow marshes and constructing small islands.

An eco-compensation mechanism will be established to incentivize greener farming and aquaculture practices, and the project will facilitate planning for ecotourism facilities and nature-based businesses.

In addition to enjoying a healthier natural environment, more than 722,000 people living in the south Dongting Lake basin area will benefit from enhanced livelihood opportunities and greater climate resilience.

The Highlands Region of Papua New Guinea is a key source of national income, but it is hampered by poorly maintained roads that are being further deteriorated by extreme weather events.

Used to access essential services and markets, these degraded roads disproportionately endanger women, who are primarily responsible for growing and selling agricultural produce in the Highlands.

In 2024, ADB committed a $256.4 million loan and a $9 million grant from the Asian Development Fund to improve 5 district roads (total length 120 kilometers) and 19 bridges in four provinces of the Highlands Region. These roads will be improved to a 3-star or better safety rating for both vehicle occupants and pedestrians.

The project includes safety and security measures for women and girls, who face risks of physical and sexual violence when using the Highlands’ core road network. It will, for instance, construct safer roadside facilities, including 40 bus shelters with solar lighting and other protective features.

The ADB investment will also help women in poor communities along the roadways to diversify and climate-proof their sources of income, with 15 women’s groups and/or cooperatives to be established and supported through business development training, seed grants, and support for climate-resilient farming and other livelihoods.

The project additionally promotes measures preventing and responding to gender-based violence.

The Indian state of Andhra Pradesh is developing its new capital city, Amaravati, alongside the Krishna River in the Guntur district. The city will occupy 217 square kilometers and be home to around 3.5 million people.

India envisions Amaravati as a “smart, green capital city” with world-class infrastructure and services centered on advanced technology and nonpolluting industries. Amaravati is expected to become a replicable model for developing greenfield urban centers as economic hubs and transforming the outer areas of existing cities.

In 2024, ADB provided a $794.8 million loan and mobilized $800 million in cofinancing to help make the Amaravati vision a reality.

The program will help ensure the application of best practices in developing sustainable infrastructure and green spaces, water and sanitation services, low-carbon public transport, and drainage systems to mitigate flood risks. It also aims to support the State of Andhra Pradesh government in improving urban governance, attracting anchor investors, generating private investment, and creating new jobs to benefit women and youth.

Through accompanying technical assistance, ADB will help update urban design guidelines, implement climate change and disaster resilience action plans, and scale up use of digital technologies.

ADB’s investment is expected to generate 12,000 new jobs, provide climate-resilient public amenities for 200,000 residents, and enhance access to essential services for vulnerable and marginalized communities.

Across parts of Southeast Asia, particularly around Indonesia, plastic pollution poses a significant threat to marine ecosystems. Environmental initiatives and financing are vital to protect ocean health, as well as the region’s tourism and other ocean-dependent industries. In Thailand, for instance, the ocean economy contributes up to 30% of gross domestic product and employs around 26% of the workforce.

During 2024, ADB made several investments in Southeast Asia aligned with the bank’s healthy oceans action plan.

Complementing an earlier nonsovereign blue loan, ADB signed a $498.2 million loan to help accelerate reforms by the Government of Indonesia for reducing ocean waste. The program aims to reduce the flow of plastic waste into the ocean by 58% by 2026 using upstream initiatives to curtail plastic production and consumption combined with improved downstream waste management. The ADB investment will additionally help strengthen marine data and monitoring tools used in government policymaking.

ADB also supported the Export–Import Bank of Thailand in issuing the country’s first baht-denominated blue bond. The bond carries a 3-year tenor and an issue size of 3 billion baht (around $90 million). The funds raised will support lending to businesses for activities protecting marine and coastal resources.