ADB and Luxembourg discuss partnership in Asia and Pacific and COVID-19 response

“ADB highly values its partnership with Luxembourg, which has shown strong support through its funds at ADB for Asia’s financial development and carbon markets,” Mr Asakawa said.

Asian Development Bank (ADB) President Masatsugu Asakawa and Luxembourg Minister of Finance and ADB Governor Pierre Gramegna in a call today discussed the ADB–Luxembourg partnership in Asia and the Pacific and responses to the coronavirus disease (COVID-19) pandemic.

"ADB highly values its partnership with Luxembourg, which has shown strong support through its funds at ADB for Asia's financial development and carbon markets," Mr Asakawa said. "Given the challenges posed by the COVID-19 pandemic, I hope we can expand our partnership in these and other areas of mutual interest."

Mr Asakawa said that a resilient, functional, and innovative financial sector is even more important during the recovery phase from the COVID-19 pandemic, and to achieve the Sustainable Development Goals. Thus, the policy should focus on financial stability, green bonds for infrastructure investment, insurance markets for risk sharing and transfer, and financial inclusion through fintech.

Since 2006, Luxembourg has supported Asia's financial development through a $7.8 million contribution to the Finance Sector Development Partnership Fund and $17.1 million to its expanded form, the Finance Sector Development Partnership Special Fund. The two funds have financed a total of 73 projects, covering financial stability, financial inclusion, innovative financing, and insurance market development.

Mr Asakawa expressed ADB's unwavering commitment in tackling climate change presented in Strategy 2030 and invited Luxembourg's further engagement to support developing members in achieving targets articulated under their respective Nationally Determined Contributions. He highlighted Luxembourg's long-standing support for ADB's Carbon Market Program and sought to continue collaboration for harnessing upcoming carbon market opportunities under Article 6 of the Paris Agreement.

Mr Asakawa also expressed his appreciation of Luxembourg's support for the 13th replenishment of the Asian Development Fund, which provides assistance to ADB's poorest and most vulnerable members.