In this file photo dated Sept 2, 2010, pedestrians walk past a logo of the Asian Development Bank (ADB) displayed outside its headquarters in Manila. (PHOTO / AFP)

MANILA — More concessional resources are needed for climate change adaptation where governments tend to underinvest, according to a new report from the Asian Development Bank (ADB) on Thursday.

The report released by ADB's independent evaluation department (IED) said the Asian Development Fund (ADF), which provides grants to the ADB's poorest and most vulnerable developing members, has enabled the bank to target small island developing areas and provide timely response to crises.

More attention is needed in supporting the design, implementation, evaluation, and learning from transformative investments related to the ADF thematic priorities of enhancing climate resilience and adaptation

As climate change, geopolitical tensions and diseases have strained the financial capacities of developing members, the report stressed the need for ADF grants to support their recovery efforts and long-term development plans.

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More attention is needed in supporting the design, implementation, evaluation, and learning from transformative investments related to the ADF thematic priorities of enhancing climate resilience and adaptation, the report said.

IED Director General Emmanuel Jimenez said there is an opportunity to enhance ADF's impact in several ways.

"Closing the monitoring and evaluation system gaps that limit the measurement of ADF outcomes and leveraging policy-based lending by reevaluating the cap for policy-based grants are ways the ADF platform can be improved," Jimenez said.

Despite initial setbacks during the COVID-19 pandemic, ADF thematic pool was regarded by developing members as "a well-designed arrangement" that incentivized special attention to projects focusing on disaster risk reduction and climate change adaptation, and regional cooperation and integration, said evaluation team leader Nassreena Baddiri.

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However, Baddiri said resources available for disaster risk reduction and climate change adaptation within the thematic pool "may not be sufficient" in providing concessional financing to meet the needs of developing members at the necessary scale.