ADB approves dual loans to support climate-smart agriculture and coastal resilience in China

The Asian Development Bank (ADB) has approved two separate loan packages to support climate-resilient development initiatives in the People’s Republic of China, focusing on low-carbon agriculture in Sichuan Province and biodiversity protection in coastal areas of Fujian Province.

ADB said it will provide a loan of 1 billion Chinese yuan (US$140.89 million) for the Sichuan Climate-Smart Low-Carbon Agriculture Development Demonstration Program, an initiative expected to benefit more than 750,000 residents. The program aims to upgrade agricultural resources, improve environmental management, and strengthen rural living conditions in one of the country’s major grain-producing regions.

“As a strategic investment, this program will contribute toward a sustainable future for agriculture in the PRC,” said ADB Country Director for the PRC Asif Cheema. He added that the initiative is designed to serve as a replicable model for other regions facing similar climate and environmental pressures.

Sichuan’s agricultural sector has experienced increasing stress from intensive land use, terracing, and heavy reliance on fertilizers and pesticides, leading to soil and water degradation. The province is also exposed to more frequent extreme weather events, which threaten productivity and regional food security.

The ADB-supported initiative will modernize farming systems, introduce low-carbon production technologies, and expand the use of digital tools to support on-farm decision-making. The program includes efforts to reduce agricultural chemical inputs, rehabilitate degraded farmlands, replace inefficient irrigation systems, and integrate emission-reduction methodologies into local practices. It will also examine the role of voluntary carbon trading in the agricultural sector.

Capacity-building is a central component, with training planned for local officials, farmers, and institutions to support long-term adoption of climate-smart techniques aligned with China’s national carbon-reduction and neutrality goals.

In a separate announcement, ADB said it has approved a 1.013 billion yuan (US$142.25 million) loan to strengthen climate resilience and protect biodiversity in Fujian Province. The Fujian Coastal Cities Climate-Resilient Development and Biodiversity Conservation Project will support flood-risk reduction in Fuzhou City and Yunxiao County through nature-based solutions.

The project will conserve and restore more than 220 hectares of coastal wetlands and mangrove habitats along the East Asian–Australasian Flyway, an essential migration route for waterbirds. ADB estimates that the initiative will enhance the resilience of about 4.4 million residents by improving coastal protection and ecosystem health.

ADB, founded in 1966 and owned by 69 members, provides financing and technical support across Asia and the Pacific to promote inclusive and sustainable development.