Financing

The Asia Pacific Region will require billions of dollars to transition to low-carbon growth paths and adapt to the unavoidable impacts of climate change. To respond to this challenge, ADB's climate change initiatives are creating access and incentives for financing and investment to help make mitigation and adaptation actions more competitive and affordable to developing countries. In this effort, we are working with a number of partners on three fronts:

  • Mobilizing concessional resources through a number of mitigation and adaptation funds
  • Catalyzing private sector investments; and
  • Maximizing the use of market-based mechanisms, such as through the Carbon Market Program

Concessional resources

Clean Energy Financing Partnership Facility (CEFPF)

A key mechanism to coordinate existing and new resources that are granted to ADB to promote the deployment of new, more efficient and less polluting supply and end-use technologies. CEFPF promotes energy security and a transition to low-carbon economies through cost-effective investments, especially in technologies that result in greenhouse gas mitigation. The facility's resources also finance policy and institutional reforms, as well as regulatory frameworks that encourage clean energy development. More

Contact: Aiming Zhou, RSID, Email contact form

Climate Change Fund (CCF)

The purpose of the fund is to facilitate greater investments in developing countries in Asia and the Pacific to address the causes and consequences of global warming. The fund provides grant financing for technical assistance, investment projects, research and other activities. More

Contact:
Mitigation (Clean Energy and Transport): Aiming Zhou, RSID, Email contact form
Mitigation (REDD and Land Use): Bruce Dunn, RSID, Email contact form
Adaptation: Charles Rodgers, RSES, Email contact form

Global Environment Facility (GEF) funds

ADB has direct access to GEF full project resources. GEF funds are helping developing countries undertake "win-win" projects to mitigate the effects of climate change, while also benefiting local economies and helping improve local environmental conditions. GEF funds also support interventions that increase resilience to the adverse impacts of climate change on vulnerable countries, sectors, and communities. The GEF also manages two separate adaptation-focused Funds under the UNFCCC — the Least Developed Countries Fund (LCDF); and the Special Climate Change Fund (SCCF), which mobilize funding specifically earmarked for activities related to adaptation, and the latter also to technology transfer. More

Contact : Bruce Dunn, RSID, Email contact form

Climate Investment Funds (CIF)

These funds are administered jointly by the World Bank, ADB, and other regional development banks.The Clean Technology Fund (CTF), one of the two trust funds, provides new, large-scale financial resources to invest in projects and programs in developing countries which contribute to the demonstration, deployment, and transfer of low-carbon technologies. The other—Strategic Climate Fund (SCF)—serves as an overarching fund for various programs to test innovative approaches to climate change. More

Contact: Preety Bhandari, RSDD-CCU, Email contact form

Adaptation Fund (AF)

The Adaptation Fund was established in 2009 to finance concrete adaptation projects and programs in developing countries that are Parties to the Kyoto Protocol in an effort to reduce the adverse effects of climate change facing communities, countries and sectors. In June 2010, ADB was accredited by the AF Board as one of the multilateral implementing entities (MIEs) of the AF. More

Contact: Charles Rodgers, RSES, Email contact form

Carbon Market Program

The Carbon Market Program (CMP) is one of ADB's flagship initiatives to mitigate climate change under its overall Climate Change Program. It is an innovative financing scheme that supports the development of greenhouse gas (GHG) mitigation projects (e.g. renewable energy, energy efficiency) in developing countries in Asia and the Pacific that are eligible under the Clean Development Mechanism (CDM) of the Kyoto Protocol (KP). It builds on and adds value to ADB's sustainable development focus in core public and private financing activities. The CMP has three elements: upfront carbon financing through the Asia Pacific Carbon Fund (APCF) and the Future Carbon Fund (FCF), technical CDM support through the Technical Support Facility (TSF), and marketing support for carbon credits through the Credit Marketing Facility (CMF).

Contact:
APCF Luis Canete, RSDD-CCU, Email contact form
FCF Virender Duggal, Email contact form


Other funds:

  • Water Financing Partnership Facility (WFPF) - Mobilizes additional financial and knowledge resources from development partners to support the implementation of Water Financing Program for expanded delivery of water investments, reforms, and capacity development. Projects can include flood management and other climate change adaptation measures. 
  • Poverty and Environment Fund (PEF) - A multi-donor trust fund administered by ADB that focuses on poverty-environment linkages, including the reduction of vulnerability to natural hazards and disaster prevention.

Catalyzing private sector investments

The United Nations Framework Convention on Climate Change and others have estimated that the private sector will need to contribute more than 85% of investment and financial flows into infrastructure. Yet, the supply of adapted risk capital that can be accessed by small and medium-sized clean energy companies in developing Asia is inadequate. Therefore, private investors, governments, and development finance institutions (like the ADB) must work to overcome present barriers that restrict capital flows into the sectors that support climate change mitigation and adaptation.

Private Equity Funds

ADB is playing a catalytic role by identifying and supporting fund managers willing to establish clean energy-focused private equity funds. ADB recently selected five funds that will invest for long-term capital appreciation in private companies and projects that are active in the renewable energy and energy efficiency sector in Asia. More

Seed Capital Assistance Facility

The recently established Seed Capital Assistance Facility (funded by a $4.2 million grant from the Global Environment Facility) is providing technical assistance to private equity fund managers and entrepreneurs to develop sustainable clean energy funds and financing for the early stages of such projects.

In parallel to this and other future initiatives, there is the need to continue scaling up direct investments to address climate change by ADB's Private Sector Operations Department, particularly with regard to addressing early stage financial and skills gaps of developing country clean energy project managers. SCAF Website

Asia Pacific Carbon Fund (APCF) and Future Carbon Fund (FCF)

The APCF and FCF are funds established and managed by ADB that cofinance CDM projects in its DMCs by securing a portion of the expected future certified emission reductions (CERs) from CDM-eligible projects in exchange for upfront finance. APCF purchases CERs up to 2012 when the first commitment period of the KP ends, while FCF purchases CERs beyond 2012 up to 2020. ADB-APCF Website