Germany pledges €5.5 mln to ADB nature finance hub

Tashkent, Uzbekistan (UzDaily.com) — The German government has joined the Asian Development Bank’s Nature Solutions Finance Hub as a financing partner, providing €5.5 million ($6.5 million) in grant co-financing.

The funds will support projects focused on the protection, restoration, and sustainable management of biodiversity and ecosystems across Asia and the Pacific.

ADB President Masato Kanda said nature plays a critical role in inclusive growth and long-term development in the region. He noted that Germany’s participation strengthens the international coalition of partners working to scale up investment in natural capital through coordinated action and innovative financing mechanisms.

The funding is provided by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) and is being implemented through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). An implementation agreement between ADB and GIZ formalized the new partnership.

Johann Saathoff, Parliamentary State Secretary at BMZ and Germany’s Governor at ADB, said Germany is combining its technical and financial expertise with ADB’s regional knowledge to promote nature-based solutions in response to biodiversity loss and climate change.

The Nature Solutions Finance Hub was launched in 2023 with a goal of mobilizing at least $5 billion in investment for nature-focused projects by 2030. The initiative aims to address the shortage of bankable projects and limited access to financial instruments needed to attract private capital.

In addition to Germany, partners include the French Development Agency, the European Union, the OPEC Fund for International Development, the Global Environment Facility, and several climate and financial programs supported by international donors.

According to ADB, the hub is already supporting around 20 projects, including flood risk reduction in the Philippines, coastal ecosystem management in Thailand, river basin restoration in Bangladesh, and watershed rehabilitation in Uzbekistan.

ADB estimates that about 75% of the Asia-Pacific economy depends on nature-related sectors such as agriculture, forestry, fisheries, and tourism. At the same time, the global financing gap for nature-based solutions exceeds $900 billion annually. The new hub is seen as a tool to help close this gap and expand investment in the region’s natural capital.

Founded in 1966, the Asian Development Bank comprises 69 member countries and remains a key multilateral development institution supporting infrastructure, social, and environmental projects across the region.