Today, the Asian Development Bank (ADB) and British International Investment (BII), the United Kingdom government’s development finance institution and impact investor, have unveiled a new trade finance partnership aimed at fostering green trade in Asia and the Pacific. Managed by ADB’s Trade and Supply Chain Finance Program (TSCFP), the collaboration will prioritize renewable energy, energy efficiency, and climate-smart agriculture to reduce dependency on fossil fuels.
Under the partnership, ADB and BII will enter into a risk-sharing agreement to facilitate international banks in increasing their financing support to local banks. Initially focusing on transactions in Viet Nam, the initiative will later expand to other countries supported by ADB and BII. The partnership aims to provide financing for local importers of solar panels, wind turbines, electric vehicles, and agricultural goods, thereby supporting the region’s transition to cleaner energy sources.
Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized ADB’s commitment to promoting sustainable, trade-based international development. She stated, “As Asia’s climate bank, ADB is committed to supporting green, climate-smart, and sustainable trade to reduce climate impacts by promoting the transition to renewable energy sources.”
The partnership with BII aligns with TSCFP’s mission to foster green, inclusive, resilient, and socially responsible global trade and supply chains. It also contributes to TSCFP’s efforts to address the estimated global trade finance gap of over $2.5 trillion annually by introducing new trade financing capacity to the market.
Srini Nagarajan, BII Managing Director and Head of Asia, highlighted the significance of green trade finance in facilitating supply chain development in the renewable energy sector. He expressed BII’s enthusiasm for collaborating with ADB to support the region’s energy transition and enhance climate resilience.
Supported by ADB’s AAA credit rating and collaborating with over 250 partner banks, TSCFP aims to stimulate economic development in Asia and the Pacific by promoting trade and supply chain growth through loans and guarantees.
Established in 1966 and owned by 68 members—49 from the region—ADB remains steadfast in its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while persisting in efforts to eradicate extreme poverty.