From Airports to Aviation Fuel: ADB’s Market Solutions Power Green Investments

The Asian Development Bank (ADB), working through its research-focused arms such as the Office of Markets Development and Public–Private Partnership and the Private Sector Operations Department, has set out a bold agenda in its August 2025 Market Solutions report. Positioned as both financier and convener, ADB aims to mobilize private sector innovation and investment to drive inclusive, resilient, and sustainable development across Asia and the Pacific. The document captures the urgency of climate challenges and the need for transformational markets, emphasizing that sustainable growth requires collaboration between public institutions, private investors, and innovators. ADB’s message is unmistakable: no single actor can deliver the sweeping transformation the region needs, but partnerships, informed by research and backed by finance, can reshape development trajectories.

Climate Finance at the Center of Growth

A central feature of ADB’s vision is its commitment to climate finance. The bank has pledged to raise more than $100 billion in cumulative climate-related financing from its own resources between 2019 and 2030. By the end of that period, 50% of its total committed financing will be climate-focused. This goal reflects both the scale of the climate crisis and the economic opportunity in accelerating the energy transition and green growth. The urgency is matched by results: between 2022 and 2024, ADB’s private sector operations more than doubled, signaling a surge in investor interest and institutional commitment. By 2030, the target is to quadruple private investment financing to $13 billion annually. This expansion is framed as a way to build vibrant private sectors that not only generate jobs and income but also channel capital into impactful climate investments.

Building Markets through Advisory and Innovation

The report identifies three main areas where ADB is working to shape markets. First is policy and institutional support, which helps governments create strong frameworks that attract investors and ensure transparent, stable markets. Second is transaction advisory, where ADB leverages its expertise to help both public and private clients design infrastructure projects that are commercially viable and investment-ready. Third is innovative financing, which blends instruments such as loans, guarantees, equity, and concessional resources to mitigate risks and create pathways for capital that might otherwise stay on the sidelines. These functions work together: strong policies build confidence, expert advisory creates sound projects, and innovative financing ensures bankability. ADB’s role is not confined to funding; it is about shaping entire ecosystems where markets can flourish and where development gains are sustainable.

Tangible Results and Demonstrated Impact

The report makes its case with a portfolio of results that highlight both financial impact and developmental outcomes. In 2024, ADB committed $2.6 billion to private sector projects and delivered $2.4 billion in climate cofinancing. It reached a record 58 project commitments, underscoring rising momentum. The bank’s Trade and Supply Chain Finance Program executed $4.9 billion in transactions during the year, while $4.3 billion in private capital was mobilized, including a milestone $2.1 billion for the rehabilitation of the Ninoy Aquino International Airport (NAIA) in the Philippines. Between 2016 and 2024, ADB supported more than 100 completed or ongoing public–private partnership projects, a testament to its growing role as a market enabler. The numbers are paired with stories of change: new jobs for vulnerable groups, expanded opportunities for women, and a stronger private sector backbone across developing member countries.

Flagship Projects in Action

Two highlighted initiatives illustrate how ADB translates strategy into impact. In Pakistan, the bank partnered with SAFCO Venture Holdings Limited to develop the region’s first private-sector-led sustainable aviation fuel (SAF) facility. The $91.2 million financing package, structured by ADB as lead arranger, combines its own resources with syndicated contributions from global financiers like the Emerging Africa & Asia Infrastructure Fund, ILX, and the International Finance Corporation. The plant will convert waste-based feedstock such as used cooking oil into aviation fuel, reducing carbon emissions by up to 85% compared to conventional jet fuel. More than a single project, it positions Pakistan as a pioneer in a growing global market while contributing to the target of 70% SAF in the aviation fuel mix by 2050.

In the Philippines, ADB served as transaction advisor for the modernization of NAIA, one of Southeast Asia’s busiest airports. The project was designed under a rehabilitate–operate–expand–transfer model that integrates climate resilience and mandates at least 20% renewable energy use. It also promotes sustainable aviation fuel. A carefully structured financial model ensures both private profitability and public benefit, using a blend of upfront payments, annuities, and revenue-sharing to maximize government receipts. This project demonstrates how ADB’s advisory role goes beyond technical guidance, it embeds climate sensitivity and financial innovation into long-term infrastructure planning.

The report is a broader narrative of inclusion and shared prosperity. ADB stresses that its projects are not only about infrastructure or finance but about creating jobs, particularly for vulnerable populations and women, while advancing green growth. By mobilizing private markets, the bank argues it is helping member countries achieve sustainable progress that benefits both communities and ecosystems. The tone is forward-looking and confident, presenting ADB as an institution that has evolved from a traditional lender into a market-shaping partner. In doing so, it seeks to rally investors, innovators, and governments around the idea that sustainable development is a collective enterprise, and that well-designed markets, backed by robust institutions and innovative finance, can transform the future of Asia and the Pacific.