Strategic alignment

SCROLL

Responding to Complex Regional Challenges

ADB accelerates support for Asia and the Pacific in 2025 driving impact through the Strategy 2030 focus areas.

Countries across Asia and the Pacific faced a rapidly changing landscape—shifting trade policies, evolving trade flows, and intensifying natural disasters. These challenges compounded persistent issues such as extreme poverty, income inequality, and limited access to essential health care and education. To meet the growing demand for tailored development solutions, the ADB expanded its lending operations. By providing vital capital and expert guidance, ADB helped its developing member countries address complex vulnerabilities and reinforced its position as the region’s leading partner for sustainable growth.

ADB’s total commitments surged by 20% compared to 2024, reaching $29.3 billion funded by regular and concessional capital resources, the Asian Development Fund (ADF), special funds, and private sector programs focused on trade, supply-chain finance, and microfinance. This robust response enabled ADB to deliver critical support, empowering countries to navigate uncertainty and build resilience for the future.

ADB’s operations remained closely aligned with the five strategic focus areas of the Strategy 2030 midterm review. The bank achieved—or is on track to achieve—its 2030 strategic alignment targets by 2030, demonstrating strong progress in expanding private sector development, strengthening resilience to disasters and climate risks, supporting biodiversity conservation and clean energy, advancing regional cooperation and integration, and accelerating digital transformation.

Further efforts are needed in a few priority areas to remain on track for 2030, particularly in increasing operations in frontier economies, expanding support for poverty reduction and inclusiveness, and strengthening commitments in fragile and conflict-affected situations (FCAS) and small island developing states (SIDS).

Private Sector development

ADB advanced this priority by scaling up private sector operations, mobilizing record amounts of private capital, and mainstreaming private sector development approaches in sovereign operations.

REGIONAL COOPERATION AND PUBLIC GOODS

ADB’s regional cooperation and integration investments fostered global and regional dialogue, promoted knowledge sharing, and strengthened partnerships to advance open regionalism and deeper regional cooperation.

DIGITAL TRANSFORMATION

ADB supported policy and institutional reforms for digital transformation of social protection, education, and health systems and expanded private investments in last-mile connectivity and green, energy-efficient data centers.

CLIMATE ACTION

ADB utilized a range of modalities and cross-sector approaches to address challenges posed by adverse weather events and climate risks while supporting resilient and low-carbon economic growth.

RESILIENCE AND EMPOWERMENT

ADB renewed its focus to strengthen resilience and empowerment recognizing the rising frequency and severity of natural,
health, economic, and social shocks—and their disproportionate impact on the poor and vulnerable.

Private Sector Development

ADB advanced this priority by scaling up private sector operations, mobilizing record amounts of private capital, and mainstreaming private sector development approaches in sovereign operations.

	Baseline Year (s)	Baseline Value	2025	2030 Target
Financing for private investments ($ billion)	2023	4.1	9.5	13.0
of which, direct private capital mobilization ($ billion)	2023	1.4	4.7	4.5
Sovereign operations contributing to private sector development (%)	2023	…	50	40

Significant rise in financing for private investment

ADB continued to grow its ability to crowd in private capital at scale by leveraging its balance sheet, innovations in deal structuring, and playing a catalytic role in emerging and frontier markets. ADB facilitated the commercial closure of two public–private partnership (PPP) projects, generating about $800 million in capital commitments from the private sector. Two additional ADB-supported PPPs reached financial closure, mobilizing $929 million in investment to expand clean energy access in the Philippines and Uzbekistan.

The significant increase in ADB’s private capital mobilization underscores the effectiveness of ADB’s approach to private sector engagement, combining project finance, capital market instruments, risk transfers, and programmatic platforms to mobilize capital across sectors and countries.

Stronger partnerships with global investors

ADB continued to strengthen partnerships with global investors and use innovative financing to mobilize capital. In 2025, for instance, ADB signed the Master Credit Insurance Framework Agreement for Sustainable Infrastructure with 10 leading global insurers, thereby establishing a platform to mobilize up to $2.75 billion in private capital by sharing credit risk on eligible ADB loans.

Box 2.1

ADB Market Acceleration Platform for Asia and the Pacific

The Asian Development Bank (ADB) launched in 2025 the ADB Market Acceleration Platform for Asia and the Pacific Trust Fund (AMAP) to support private sector-led development through improved enabling environment to development markets for private capital across its developing member countries. AMAP is designed as a multi-partner platform that supports policy and regulatory reform, institutional capacity building, and development of bankable project pipelines, while deploying innovative risk-sharing and de-risking solutions to crowd in private investment. By strengthening market readiness and investment ecosystems-particularly in frontier, fragile, and underserved markets-AMAP aims to scale up private participation in priority sectors such as infrastructure, clean energy, financial services, and digital transformation, contributing to inclusive, resilient, and sustainable growth in Asia and the Pacific.

Source: Asian Development Bank.

Strengthening internal expertise and developing new products

ADB launched its Environmental and Social Coordinator service, helping to mobilize over $1.7 billion for renewable power projects in 2025 while ensuring strong safeguard compliance. ADB is steadfast in having its sovereign operations assessed and accountable for project designs that are aimed at creating better enabling environments for private sector-led growth. Approximately half of sovereign projects in 2025 were intentionally designed for meaningful contributions to PSD. Operations in public sector management and finance, for example, address binding constraints to private sector investment, primarily through reforms in regulatory and policy environment.

The PSD Shift Operational Approach was approved and helped guide actions to mainstream PSD across all of ADB’s operations. Key areas include improved guidance and consistency for PSD diagnostics and priorities in country partnership strategies, and continued refinement to PSD metrics that are used for guiding and assessing the quality of project designs for the integration of PSD elements.

New platforms and partnerships were launched in 2025, such as the ADB Market Acceleration Platform for Asia and the Pacific which enable greater private investment, particularly in frontier markets, FCAS, and SIDS (Box 2.1).

Strengthening capacities in public–private partnership

ADB supported its developing member countries through transaction advisory service mandates and market development activities focused on the energy, water, digital, and transport sectors, which are central to improving service reliability, expanding access, and strengthening economic resilience.

ADB policy advocacy and services aimed to strengthen capacity in governments and private sector partners to develop and implement PPPs. ADB delivered training programs providing government officials with practical skills in project development, risk management, and contract oversight. Longer-term institutional strengthening continued to support national PPP centers and advanced upstream policy formulation and project preparation in selected countries in the region.

Continued efforts are needed in frontier markets.

ADB recognizes the importance of supporting private sector development in frontier economies. ADB is increasingly leveraging concessional resources, including the ADF Private Sector Window and strategic initiatives such as the Wayfinder program in the Pacific, the ADB Frontier Facility, and ADB Ventures to support private-sector led growth in these economies.

Regional Cooperation and Public Goods

	Baseline Year (s)	Baseline Value	2025	2030 Target
Operations supporting regional cooperation and public goods (%)	2023	18	22	30

Deepening regional cooperation and integration

ADB continued to strengthen regional cooperation and integration (RCI) in 2025 by financing cross-border investments, fostering regional dialogue, sharing knowledge, and building partnerships. These efforts help countries respond to growing challenges—from trade uncertainty and geopolitical fragmentation to climate change, environmental degradation, and health threats—that no country can tackle alone. In 2025, ADB committed $8.5 billion to 36 regional cooperation projects, representing 22% of total operational commitments, up from 18% in 2024. Of this, $2.4 billion supported regional public goods that generate shared benefits across borders.

Evolution of ADB's support to RCI

ADB’s investments to promote RCI are creating stronger links between economies while delivering broader development benefits across the region. These have evolved beyond traditional transport connectivity to promoting trade and investment, digital connectivity, clean energy, sustainable food systems, healthy oceans, biodiversity conservation, cleaner air, and regional health security.

Looking ahead, the forthcoming Operational Approach for Revitalizing RCI, 2026–2030 will accelerate regional integration through expanded multimodal transport, clean energy, and digital infrastructure; deeper trade, investment, and financial cooperation; and greater investment in regional public goods. Transformative regional initiatives—including interoperable digital public infrastructure, cross-border data frameworks, digital trade systems, and regional payment connectivity—will also be supported to help strengthen productivity, resilience, and sustainable growth across Asia and the Pacific.

Advancing Digital Transformation

	Baseline Year (s)	Baseline Value	2025	2030 Target
Operations supporting digital transformation (%)	2023	11	29	>past year

Strong commitments to digital transformation

The higher commitment in 2025 was driven by operations advancing digital connectivity, digital public infrastructure, cybersecurity and data governance, and the digitalization of transport, logistics, water, and urban services. These provided scalable entry points for embedding digital transformation across traditional sectors and strengthened the integration of digital components across ADB operations. Water and urban development projects for example, incorporated smart systems for asset management, service delivery, and operational efficiency, demonstrating how digital solutions can enhance sector performance and resilience.

Digital components as core elements in operations

Digital components are increasingly being embedded as core operational elements rather than stand-alone add-ons, enabling measurable efficiency gains, improved service delivery, and enhanced resilience. The ADB’s portfolio of operations reflects a shift from isolated technology interventions toward system-wide transformation that combines connectivity, platforms, data systems, institutional reform, and service delivery redesign. Digital technologies, including AI, satellite earth observation, and advanced cybersecurity tools—are integrated more systematically into project design and implementation, strengthening development impact across sectors. ADB also continues to increasingly prioritize integrated digital transformation programs including for national digital public infrastructure, sovereign cloud and data platforms, and cross-sector digital governance reform that addresses policy, infrastructure, institutional reform, and service redesign at scale.

Future demand growth

Demand for ADB support is expected to grow for AI-enabled public services, sovereign data and cloud infrastructure, regional digital corridors, and secure cross-border digital ecosystems. DMCs are prioritizing digital resilience, trusted data governance, and smart infrastructure and satellite-enabled monitoring. Guided by the forthcoming Digital ADB: An Operational Approach for Digital Transformation, ADB will deepen digital integration across its operations and institutional systems along with knowledge support and capacity building to ensure that digital investments deliver inclusive, efficient, and sustainable outcomes across DMCs.

Climate Action

ADB utilized a range of modalities and cross-sector approaches to address challenges posed by adverse weather events and climate risks while supporting resilient and low-carbon economic growth.

	Baseline Year (s)	Baseline Value	2025	2030 Target
Financing for climate action (%)	2023	46	51	50
Operations supporting disaster risk management, and environment and nature (%)	2023	24	35	32

Strong demand for resilience investments

Developing member countries continued to seek financing to address challenges posed by adverse weather events —catastrophic floods, tropical cyclones, heatwaves—and slow-onset risks such as sea-level rise, drought and water stress, glacier and permafrost melt, desertification, and salinization that impact communities, damage infrastructure, and disrupt economies and livelihoods. In response, ADB scaled up investments that strengthen resilience and environmental sustainability across sectors. By combining financing, knowledge, and cross-sector solutions, ADB helped countries build more resilient infrastructure, support sustainable economic growth, reduce poverty, and create jobs.

Transport and energy led investments

Transport and energy accounted for nearly half of ADB’s resilience and sustainability commitments, with 26% directed at transport and 23% to energy. These investments are helping countries expand infrastructure and essential services while reducing carbon emissions and supporting the transition to cleaner, more sustainable energy sources. Demand also grew rapidly in education, health, and digital technologies, reflecting the increasing need for sustainable solutions across many sectors.

Box 2.2

Supporting a Resilient Blue Economy in the Philippines

The Asian Development Bank extended to the Government of the Philippines a $500 million policy-based loan to support the sustainable management of marine ecosystems and advance blue economy development in the Philippines. The Marine Ecosystems for Blue Economy Development Program (Subprogram 1) strengthens ocean-based productivity, restores coastal ecosystems, improves plastic and solid waste management, and promotes investment in natural capital to build resilience, protect livelihoods, and support low-carbon growth. Expected results include expanded implementation of integrated coastal resource management, increased mangrove coverage, and sustainable expansion of aquaculture across inland and municipal waters; increased uptake of solid waste management and recycling schemes, with higher diversion and recycling of single-use plastics; and the application of natural capital accounting in investment decisions, alongside increased investment in ecosystem services and blue carbon.

Source: Asian Development Bank.

Scaling up nature and disaster resilience

ADB expanded support for projects that integrate disaster risk management, environmental management, and nature conservation. Progress was driven by the implementation of ADB’s Environment Action Plan, 2024–2030, stronger mobilization of nature finance, deeper integration of environmental priorities across operations, and closer collaboration with development partners to deliver lasting resilience and better environmental outcomes.

Resilience and Empowerment

ADB renewed its focus to strengthen resilience and empowerment recognizing the rising frequency and severity of natural, health, economic, and social shocks—and their disproportionate impact on the poor and vulnerable.

	Baseline Year (s)	Baseline Value	2025	2030 Target
Operations in frontier economies (%)	2023	40	27	50
Operations supporting poverty reduction and inclusiveness (%)	2023	60	43	75
Financing for fragile and conflict-affected situations, and small island developing states (%)	2023	4.4	5.5	7.5
Operations promoting gender equality (%)	2023	50	71	60

Support for poverty reduction and inclusiveness

With the rising frequency and severity of overlapping natural, health, economic, and social shocks—and their disproportionate impact on poor and vulnerable populations across Asia and the Pacific, ADB is strengthening how it measures and delivers its response to these challenges. In 2025, ADB introduced a more rigorous classification system to better identify projects that make a direct contribution to poverty reduction and inclusion, reflecting its commitment to reaching those who need support the most. The new methodology, which took effect on 1 July 2025, counts only projects with clearly demonstrated direct poverty reduction outcomes toward its target of 75%. Since its introduction, 43% of ADB’s operational commitments have met this higher standard.

Many other ADB projects continue to improve people’s lives albeit indirectly. These include policy-based reforms and investments in sectors such as energy and transport that strengthen essential services, improve connectivity, expand economic opportunities, and create the conditions for long-term, inclusive growth.

To increase the number of projects delivering direct poverty reduction outcomes, ADB is strengthening the way poverty and inclusion are integrated into project design. New guidance, practical tools, and sector-specific resources are helping project teams incorporate inclusive features, track beneficiaries more effectively, and measure results more consistently. These efforts will improve project quality and help ensure that more investments deliver meaningful benefits for poor and vulnerable communities.

Investing in inclusive businesses as a pathway to poverty reduction

ADB operations are helping businesses grow while creating opportunities for low-income communities. By supporting commercially sustainable enterprises that caters to people at the base of the income pyramid as customers, suppliers, distributors, and employees, ADB is promoting market-led solutions that generate both business success and lasting development impact.

In 2025, most inclusive business investments were in the finance sector, expanding digital financial services and improving access to finance for micro, small, and medium-sized enterprises (MSMEs). Such investments are helping entrepreneurs—particularly women and underserved borrowers—overcome barriers such as limited collateral, informal incomes, and low financial literacy.

By partnering with inclusive businesses, ADB is unlocking opportunities in underserved markets, creating jobs, expanding financial inclusion, and supporting more inclusive and sustainable economic growth across Asia and the Pacific.

Continued strong support to empower women and girls

Building on strong performance in previous years, ADB continued to advance its support to women and girls, with 71% of its operation commitments. ADB’s increased focus on identifying opportunities and incorporating components across its operations to strengthen women’s economic empowerment, participation in decision-making, and access to critical services, has been important to sustain and deepen this achievement.

ADB is strengthening technical expertise and leadership for mainstreaming support for women and girls, both internally and in its clients. This includes continued investment in building capacity in ADB staff, and in executing and implementing agencies, through targeted training programs and the development of sector toolkits.

Finance and transport had the highest share of gender-mainstreamed operations; followed by water and other urban infrastructure and services, and agriculture, food, nature, and rural development. Several project commitments promoted transformative action to strengthen women’s economic participation and leadership.

Scaling ADF Operations to Support the most Vulnerable

In 2025, the ADF continued to support the development needs of the most
vulnerable developing member countries with grant commitments reaching $1.3 billion. This included $984.1 million financed under the ADF 14 resource allocation framework (2025–2028), accounting for roughly one-quarter of the fund’s total resource envelope. Operation commitments were shaped by heightened fragility and conflict contexts, with financing through the Community Development Window (CDW) for the people of Afghanistan (endnote 17) and Myanmar (endnote 18) accounting for a little over half of 2025 ADF 14 commitments ($500 million). The remaining commitments were allocated through country allocations ($235.4 million, 24%), the thematic window ($162.0 million, 16%), the crisis response window ($81.7 million, 8%), and the private sector window ($5 million, 1%).

Committed operations indicate early progress toward ADF 14 policy commitments. In 2025, 21% of ADF grant commitments supported SIDS, while 64% were directed at FCAS. Commitments contributing to climate and natural hazards resilience accounted for 37% of total ADF financing, and 40% supported regional cooperation and integration, including the provision of regional public goods (RCI–RPGs), providing a strong foundation for meeting ADF 14 targets by 2028.

Overall, ADF operations in 2025 remained closely aligned with ADF 14 priorities, maintaining a strong focus on FCAS and SIDS while increasing support for disaster response and regional public goods. The commitments portfolio reflects ADB’s continued effort to channel concessional resources to countries and contexts with the greatest development needs.