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.
