ADB and AFD Boost Sustainable Project Funding in Asia

The Asian Development Bank (ADB) and Agence Francaise de Developpement (AFD) have revised their Partnership Framework Agreement, doubling their common co-financing target to USD 6 billion for 2026–2028, from the earlier target of USD 3 billion for 2023–2025. The partnership, signed in Paris between ADB President Masato Kanda and AFD Chief Executive Officer Remy Rioux, demonstrates increasing strategic convergence between the two institutions and will serve to drive development in priority sectors in Asia and the Pacific.

Masato Kanda, President of ABD said, "AFD is a close ADB partner, and our deepened partnership demonstrates how we can turn shared aspirations into tangible outcomes for people and the planet. Raising our co-financing commitment goal to USD 6 billion is a bold move in our backing of Asia and the Pacific's shift toward low-carbon, sustainable growth. The increased target will ramp up financing for clean energy, sustainable transport, nature-positive initiatives, and other ADB developing member countries' priorities."

Key Highlights:

• ADB and AFD double co-financing target to USD 6 billion for 2026–2028
• New funds to support clean energy, transport, and nature-positive projects
• Partnership aims to enhance project coordination and reduce transaction costs

Since the establishment of the framework in October 2022, the two institutions have so far raised USD 4.64 billion in excess of the initial USD 3 billion target, USD 3.2 billion from ADB and USD 1.44 billion from AFD.

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Remy Rioux Chief Executive Officer of AFD said, “AFD's cooperation with ADB is a pillar of AFD's international development partnership with Asia. Collectively, we are showing that public development banks can serve as a system to deliver solutions at scale. This USD 6 billion pledge is both a testament to our confidence in one another and to our joint vision to address the region's most complex challenges.”

The new agreement also emphasizes enhancing operational coordination and collaborative project preparation, to facilitate implementation and minimize transaction costs. The high level meeting between ADB and AFD will be held in September 2025 at ADB headquarters in Manila, Philippines, to discuss progress and future priorities.