The Asian Development Bank (ADB) joined forces with British International Investment (BII), the UK’s development finance institution on January 18 to sign a risk-sharing agreement aimed at financing up to $100 million in green trade transactions across South and Southeast Asia.

Beginning in Vietnam, the initiative will provide financial support to local importers engaged in sustainable sectors such as solar panels, wind turbines, electric vehicles, and agricultural goods, contributing to the region’s shift towards cleaner energy sources.

The cooperative effort between ADB and BII, both key players in global development finance, is a strategic move to promote green trade in the Asia-Pacific region. Managed by the ADB’s Trade and Supply Chain Finance Program (TSCFP), the partnership will prioritize funding for renewable energy, energy efficiency, and climate-smart agriculture, aligning with efforts to reduce dependency on fossil fuels.

“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,” ADB Director General for Private Sector Operations, Ms. Suzanne Gaboury, emphasized. The partnership exemplifies ADB’s leadership in fostering multilateral cooperation to deploy trade financing solutions that advance sustainable, trade-based international development.

The financing partnership with BII forms part of TSCFP’s overarching mission to make global trade and supply chains green, inclusive, resilient, and socially responsible. It also aims to address the substantial global trade finance gap, estimated at over $2.5 trillion annually, by introducing new trade financing capacity to the market.

BII Managing Director and Head of Asia, Mr. Srini Nagarajan, expressed his enthusiasm about the cooperation. “Green trade finance enables supply chain development of the renewable energy industry and tackles bottlenecks for much-needed long-tenor financing in the region,” he said. “We are delighted to work with ADB on a shared ambition to support the region’s energy transition and build climate resilience.”

Backed by ADB’s AAA credit rating and leveraging partnerships with over 250 banks, TSCFP continues to play a pivotal role in fostering economic development in the Asia-Pacific by growing trade and supply chains through loans and guarantees.