ADB will achieve full alignment of its sovereign operations by 1 July 2023.
Alignment of its nonsovereign operations will reach 85% by 1 July 2023 and 100% by 1 July 2025.
As Asia and the Pacific is expected to recover from the covid-19 pandemic, ADB also announced plans to scale up investments in adaptation and resilience, resulting in cumulative financing of $9 billion in 2019–2024.
The Paris Agreement aims to keep the rise in global temperatures to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels.
"ADB recognizes that the implementation of the Paris Agreement is critical in the global fight against climate change," said ADB President Masatsugu Asakawa in a press release on Thursday.
"“By fully aligning our operations to the goals of the Paris Agreement and expanding our investments in resilience and adaptation, ADB will lower the carbon footprint across Asia and the Pacific and help our developing member countries (DMCs) to move their economies toward a more sustainable, resilient, and inclusive future," he added.
Asakawa made the announcement at the first V20 Climate Vulnerables Finance Summit, hosted by the Government of Bangladesh.
The V20 comprises 48 countries, most of which have relatively small gross domestic products and are uniquely vulnerable to the impacts of climate change. Nineteen of the V20 member countries are ADB DMCs: Afghanistan, Bangladesh, Bhutan, Cambodia, Fiji, Kiribati, Maldives, the Marshall Islands, Mongolia, Nepal, Palau, Papua New Guinea, the Philippines, Samoa, Sri Lanka, Timor-Leste, Tuvalu, Vanuatu, and Vietnam.