ADB, BII introduce green trade finance partnership

This will support energy transitions and climate-smart agriculture initiatives.

The Asian Development Bank and the British International Investment (BII) collaborated to launch the new trade finance partnership to promote green trade in the region, prioritising initiatives that will reduce fossil fuel dependency.

Under the partnership, which will be managed by ADB’s Trade and Supply Chain Finance Programme (TSCFP), the two parties. will enter a risk-sharing agreement to support international banks in raising their support to local banks, initially focusing on transactions in Vietnam.

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This will finance the importation of solar panels, wind turbines, electric vehicles, and agricultural goods, the ADB said.

The partnership will also help TSCFP’s goal to enable “global trade and supply chains green, inclusive, inclusive, resilient and socially responsible,” ADB said.

It added that this will also support the Programme’s reduction of global trade finance gap projected at over $2.5t.