AgTech Funding

ADB Approves USD 141M Loan to Support Low-Carbon, Climate-Smart Agriculture in Sichuan Province

The Asian Development Bank (ADB) approved a USD 140.89M loan to promote low-carbon and climate-smart agriculture in Sichuan, China.
Image provided by the Asian Development Bank.

Key Takeaways

  • The Asian Development Bank (ADB) approved a ¥1 billion (US$140.89 million) loan to promote low-carbon and climate-smart agriculture in Sichuan, China.
  • The program aims to benefit over 750,000 residents through improved environmental assets, upgraded agricultural systems, and more resilient rural livelihoods.
  • Sichuan faces soil degradation, water-quality issues, and climate-related risks caused by intensive farming and chemical overuse.
  • The initiative will modernize farms, integrate digital tools, strengthen climate resilience, and support emission-reduction methodologies.
  • ADB leadership emphasized that the program could serve as a replicable model for climate-smart agriculture in other regions.

ADB Launches Climate-Smart Agriculture Program for Sichuan Province

The Asian Development Bank (ADB) has approved a ¥1 billion (US$140.89 million) loan to advance low-carbon and climate-resilient agriculture in Sichuan Province in the People’s Republic of China. The financing supports the Sichuan Climate-Smart Low-Carbon Agriculture Development Demonstration Program, which is expected to benefit more than 750,000 residents through improvements to agricultural resources, environmental management, and rural living conditions.


ADB Highlights Need for Scalable Climate-Smart Solutions

ADB Country Director for the PRC Asif Cheema described the project as a strategically important investment.
“This program is a strategic investment for ADB that will contribute toward a sustainable future for agriculture in the PRC,” he said.

“By establishing a replicable model for low-carbon and climate-smart agriculture, we are not only building resilience for Sichuan Province but also creating a valuable and scalable blueprint for other regions and countries confronted by similar challenges.”


Addressing Agricultural Pressures and Climate Risks

Sichuan is one of China’s leading grain-producing regions but faces mounting challenges:

  • Intensive land use and terracing
  • Overuse of chemical fertilizers and pesticides
  • Soil and water degradation
  • Increasing frequency of extreme weather events

These pressures reduce agricultural productivity, affect natural ecosystems, and pose risks to regional food security.


Program Supports Modernization, Emissions Reduction, and Digital Agriculture

The ADB-supported initiative introduces a multi-layered approach to climate-smart agricultural transformation, including:

  • Modernization of farms and production systems
  • Integration of low-carbon technologies and climate-smart practices
  • Deployment of digital information services to support farmers
  • Development of policies and incentives that promote sustainable farming
  • Evaluation of voluntary carbon-trading mechanisms for agriculture
  • Reduced reliance on chemical inputs
  • Strengthened resilience of rural communities to climate and natural hazards

The program will also upgrade degraded farmlands, restore ecological functions, and replace inefficient irrigation systems to protect water resources.


ADB: Building Local Capacity for Long-Term Agricultural Resilience

A key component of the program is improving knowledge sharing and technical expertise in low-carbon agriculture and rural development. This includes training local officials, farmers, and institutions to adopt new technologies and practices that support China’s national carbon-reduction and neutrality goals.

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