Establishing the Canadian Climate Fund for the Private Sector in Asia under the Clean Energy Financing Partnership Facility
This is ADB's first concessional debt cofinancing facility specifically oriented to support private sector operations to combat climate change.
This fund aims to catalyze private sector investment in climate change mitigation and adaptation by supporting private sector efforts to overcome the risks and cost hurdles of leading-edge technology, toward initiating and scaling up projects to reduce greenhouse gas emissions and strengthen resilience under climate change.
The purpose of the Canadian Climate Fund for the Private Sector in Asia is to catalyze greater private investment in climate change mitigation and adaptation in developing Asia and the Pacific. The fund will aim to play a key role in helping the private sector to overcome leading edge technology risks and cost hurdles in order to initiate and scale-up projects to reduce greenhouse gas (GHG) emissions and increase climate resilience. It is expected that the fund will leverage up to US$300 million of private sector lending and investment from concessional financing and result in up to 750,000 tons of GHG emissions reductions per annum.
- The fund will provide fund resources - Concessional financing, co-financed with ADB resources, to select private sector projects that do not benefit from a sovereign guarantee and require some financing on concessional terms to be viable or acceptable from a risk-reward perspective. These projects may include but are not limited to: clean energy (including renewable energy, energy efficiency and cleaner fuel) in energy sector and non-energy sector including agriculture, urban infrastructure and sustainable transportation projects.
- The fund will also provide fund resources - Grants to selected private sector projects, or public sector projects that improve the enabling environment for private sector investments, to facilitate deployment of new technologies and support activities that enable policy and institutional reforms, as well as regulatory frameworks to encourage climate change mitigation and adaptation.
One or more of the following eligible ADB developing members can avail of the fund: Afghanistan, Armenia, Bangladesh, Bhutan, Cambodia, Cook Islands, Fiji, Georgia, India, Indonesia, Kiribati, Lao PDR, Maldives, Marshall Islands, Federated States of Micronesia, Mongolia, Myanmar, Nauru, Nepal, Pakistan, Palau, Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Tajikistan, Timor-Leste, Tonga, Tuvalu, Uzbekistan, Vanuatu and Viet Nam.