The European Union (EU) is a political and economic union of 27 member states in Europe. It was established to foster economic cooperation and seeks to drive sustainable development, peace, and economic integration. In June 2024, the European Council set out its priorities in the 2024–2029 EU strategic agenda.
EU priority areas include human development, social inclusion, gender equality, climate change, environmental protection, and migration-related actions. The EU works with ADB to promote green infrastructure, climate action, human rights and good governance, health, education, sustainable agriculture and food security, environment and clean energy, food and agriculture, and cross-border cooperation in human and animal health.
The European Commission, the executive arm of the EU, requires partner organizations to pass institutional compliance assessments, called Pillar Assessment, before using indirect management cooperation with them. The Pillar Assessment comprises up to nine pillars. ADB has gone through the assessment applicable to multilateral development banks (Pillars 4, 7, 8, and 9), and the results received were all positive.
In November 2023, ADB and the European Training Foundation (ETF) signed a memorandum of understanding (MOU). The MOU establishes a cooperative framework enabling both institutions to advance human capital development through education, training, and social inclusion initiatives. The agreement, which promotes the sharing of technical and knowledge expertise, aims to assist developing member countries in Central and West Asia in strengthening their human capital base with modernized skills frameworks and labor outcomes. The ETF is an EU agency that helps neighboring countries reform their education and training systems as part of EU external relations policies.
2024 Annual Report to the European Council on EU Development Aid Targets – Council Conclusions
11 December 2024
ADB approved a $25.45 million grant to help Solomon Islands develop sustainable, inclusive, and climate-resilient water supply and sanitation services.
20 November 2024
ADB and the governments of Solomon Islands and Tonga have signed grant and loan agreements for energy projects on the sidelines of COP29. The ADB-supported projects will help the Pacific countries to transition from dependency on diesel fuel imports to renewable energy.
26 February 2024
European Union (EU) import charges on carbon-intensive products are expected to have a limited impact on climate change and only a modest negative effect on economies in Asia and the Pacific, according to research by ADB.
Between 1995 and 2018, carbon dioxide emissions from global value chains grew faster than from other sources which concerns developing Asian economies as critical players within global value chains. EU’s Carbon Border Adjustment Mechanism would have a limited effect on global carbon emissions and will likely reduce global and Asia’s exports to the EU and downstream production within EU.
ADB, along with the European Union and the World Bank, is helping the country surmount these challenges through a sector-wide water and sanitation project that will expand and upgrade Solomon Islands' water and sewerage infrastructure.
The Lao People’s Democratic Republic aims to transform Vientiane, its fast-growing capital, into a sustainable city with support from ADB and cofinancing partners European Union’s Asia Investment Facility, European Investment Bank, Global Environment Facility, and the OPEC Fund for International Development.
Bangladesh’s Primary Education Development Program introduced innovative approaches that changed the face of basic education in the country, helping increase primary school enrollment and completion rates over the last 20 years.
ADB and the European Union collaborated on several knowledge products and events including the following:
This report delivers an in-depth analysis of operational certification procedures (OCPs) across a range of Asian free trade agreements (FTAs).
On the International Day for the Elimination of Violence Against Women in 2024, multilateral development banks were united in their efforts to create a world where women and girls live free from violence.
Active trust funds are those a) with ongoing projects; or b) with no active projects but have remaining funds.
The European Union contributes to ADB’s development initiatives through cofinancing.
In January 2023, ADB and the EU signed the Financial Framework Partnership Agreement (FFPA) with the commitment to contribute to the effective delivery of development assistance and economic, financial, and technical assistance. Both commit to promoting the implementation of the 2030 Agenda for Sustainable Development and supporting partner countries’ efforts to achieve the Sustainable Development Goals. In June 2023, ADB discussed with EU officials the (i) actions following the signing of the FFPA, (ii) EU priorities, including their Global Gateway Program focused on the Indo-Pacific and Central Asia, (iii) ADB’s evolution, and (iv) ADB’s climate agenda and initiatives.
Sovereign Cofinancing. In 2024, the EU committed $30.1 million in grant cofinancing for three investment projects. This includes $22.6 million to modernize Nepal’s electricity transmission and distribution infrastructure, ensuring reliable and sustainable electricity delivery while creating employment and business opportunities. Additionally, $5.4 million was allocated to enhance Solomon Islands’ economic and fiscal resilience post-COVID-19 through sustainable reforms. Lastly, $2.1 million was provided to help Tonga meet its renewable energy target, reliance on fossil fuels, and enhance the disaster resilience of its power grid.
