BAKU, Azerbaijan, May 4. Germany has called on
the Asian Development Bank (ADB) to strengthen its climate agenda,
support the energy transition, and create green jobs, as well as to
increase operational efficiency and maintain the bank's high credit
rating against a backdrop of growing global risks and the economic
vulnerability of the region's countries, Trend reports.
The proposal was made by the Governor of Germany at the ADB,
Johann Saathoff, in his speech at the ADB Annual Meeting in
Samarkand (Uzbekistan).
According to him, Germany's development cooperation with Asia
and the Pacific will focus on climate, the environment, and clean
water, economic cooperation, and the protection of democratic
institutions.
"Another common goal is the formation of strategic alliances to
solve global problems and strengthen the multilateral system and
regional cooperation. The goal is to work in even closer
partnership with the ADB's Developing Member Countries (DMCs)," he
said.
"The ADB has proven that it is capable of responding and acting
effectively in a rapidly changing global situation. Germany
supports the bank on its path toward increasing efficiency, work
quality, and financial sustainability. AAA-level ratings must be
fully maintained to provide stable and low-cost financing for
clients, including during periods of crisis. We expect the ADB to
maintain high ambition in matters of climate change and nature
protection, gender equality, and working in conditions of
instability.
Challenges remain massive and continue to grow. Price shocks in
the energy and fertilizer markets, as well as the reduction in air
travel and tourism in certain parts of Asia and the Pacific
following the conflict in the Middle East this year, have
demonstrated the vulnerability of many of the region's economies.
While we welcome the bank's efforts to support client countries
through accelerated measures and macroeconomic advice, such
decisions must be made through the mechanisms provided for by the
ADB Charter. We recognize that short-term stabilization measures
may be necessary, but the medium-term perspective must not be lost
sight of," he noted.
Saathoff added that targeted cash transfer programs for those
most affected are more effective for mitigating negative
consequences than costly and universal fossil fuel subsidy
programs.
"In general, recent crises have once again shown that the region
remains heavily dependent on fossil fuels, which carries
significant costs and risks. Therefore, the bank should further
strengthen its support for client countries in their transition to
renewable energy sources," Saathoff emphasized.
"We welcome the presentation of the latest reports on the
results of the bank's operations. They demonstrate progress in
several areas, but in others, there remains room for improvement.
Given that the success rates of both sovereign investment projects
and non-sovereign projects remain below 60%, we urge ADB management
to pay even more attention to operational efficiency and
effectiveness to maximize the development effect.
We expect the ADB to maintain high ambitions in the sphere of
climate support for member countries and to strengthen synergies
with the intensification of efforts in the field of nature
protection. A strong political basis for the bank's climate
activities is needed. There is high demand from ADB member
countries for climate-oriented policy and investment in areas such
as nature-based solutions, agriculture, energy, transport, and
other sectors," the Governor for Germany noted.
According to him, the bank's climate policy must be embedded in
a holistic concept that maintains the bank's credibility and
reliability as a partner and provider of policy advice and
financial solutions.
"Germany supports the bank's focus on sustainable job creation.
The ADB must put decent, inclusive, and 'green' jobs at the center
of its employment agenda. It can contribute to forming an
environment in which business develops and creates more quality
jobs with decent pay, social inclusion, and sustainability as key
standards. Achieving this requires a balance between reducing
excessive administrative barriers and creating reliable regulatory
frameworks in the field of labor rights, gender equality, effective
taxation, proper governance, and the 'green' transition," Saathoff
concluded.
