As the Asian Development Bank (ADB) convenes its 58th annual meeting, taking place from May 4-7 in Milan, Pakistan is facing an early and intense heatwave. Per the ADB’s latest ‘At a Glance’ report (2023), 17 per cent of the Bank’s total lending and investments globally are directed toward the energy sector, underscoring its significant role in financing power generation and infrastructure — including fossil fuel projects in countries like Pakistan.

The NGO Forum on ADB estimates that the Bank has invested $15.28 billion in 74 energy projects in Pakistan, and its focus on conventional energy over renewables raises concerns. While 50.5pc of the funds were earmarked for modernising the national grid, 17pc support conventional energy expansion (1,330 MW). Meanwhile, renewable projects receive minimal funding. Wind and solar allocations remain unspecified.

Simply put, the ADB’s continued investment in fossil fuels contradicts its sustainability commitments, potentially undermining Pakistan’s energy security and environmental goals. Fossil fuel financing also impacts air quality, with rising levels of particulate matter (PM 2.5), tropospheric ozone and nitrous oxide, disproportionately burdening the country with public health crises, environmental degradation and economic loss.

The ADB’s 58th annual meeting presents a critical opportunity to address air pollution — a pressing global crisis that remains conspicuously absent from the meeting’s core agenda. While the health and environmental impacts of unchecked emissions are profoundly damaging, the meeting has yet to commit to concrete measures that reduce the pollution footprint of ADB-funded projects or advance technological solutions.

This year’s meeting includes constructive engagement with civil society organisations (CSOs) and affected communities. However, this dialogue must translate into meaningful action.

Air pollution is affecting every corner of the planet, harming biodiversity, undermining public health, and jeopardising the Paris Agreement’s 1.5°C goal. And while the ADB claims its safeguards mitigate environmental harms, there is a significant gap between policy and practice. The Paris Agreement’s Enhanced Transparency Framework (ETF) aims for standardised climate accountability, yet international financing institutions (IFIs) such as the ADB fall short in aligning their Environmental and Social Framework (ESF) and Energy Transition Mechanism (ETM) with these standards.

Where the ETF requires detailed emissions reporting, IFIs like ADB often hide project-level GHG impacts, particularly from coal and gas projects. For instance, ADB-funded coal plants in Pakistan report only aggregated emissions, obscuring local health and ecological damage. Moreover, the Paris Agreement’s focus on CO2 neglects Short-Lived Climate Pollutants (SLCPs) such as methane and black carbon, which account for around 45pc of global warming and are common in ADB’s fossil fuel investments.

The ADB, a 69-member........

© Dawn Prism