The use of financial risk management products can play a critical role in helping ADB developing member countries scale up climate investment, mitigate the impacts of climate change and meet their commitments under the Paris Agreement.

To support the scale up of climate investment, ADB established in 2017 the Asia-Pacific Climate Finance Fund (ACliFF) as a multi-donor trust fund with financial support from the Government of Germany’s Federal Ministry of Economic Cooperation and Development (BMZ).

This explainer video summarizes how ACliFF supports the development and implementation of innovative, scalable, and commercially viable financial risk management products that increase investments in climate change mitigation, adaptation, and address extreme weather events in ADB developing member countries.

ACliFF provides technical assistance, grants, and other financing modalities for financial risk management products that directly address: Climate investment risk, and overcoming barriers for adopters and financiers of new technologies and approaches; and, extreme weather risk, by improving resilience and reducing vulnerability to climate impacts.

Approved allocations to date amount to $10.675 million that support seven ADB projects.


Asia and the Pacific is responsible for around 50% of global greenhouse gas emissions, and the overall level of emissions continues to grow.  The region also experiences devastating extreme weather events and climate change is making these increasingly frequent and more severe.  Developing countries have an urgent need to invest in climate change mitigation and adaptation. To limit global warming to below the 2-degree target, estimates suggest an annual investment of at least $200 billion in climate-related infrastructure is needed across the region, increasing even higher beyond 2030.  Current levels of climate investment fall well short of these levels.

The Asia-Pacific Climate Finance Fund, ACliFF, aims to unlock capital for climate investments and improve resilience to the impact of climate change through the innovative use of financial risk management products.

Through ADB and non-ADB projects, these financial risk management products support ADB’s developing member countries to:

  • Scale up the adoption of climate technologies

For example, guaranteeing the performance of new renewable energy solutions could accelerate their take up by providing assurances to new users.

  • Mobilize new sources of private sector climate financing

Credit, liquidity, or other market risks may limit private sector investment in climate projects.  The smart use of financial risk management products can scale up climate investment through blended finance solutions.

  • Support investment into climate-sensitive sectors

Sectors such as agriculture, water, fisheries and others, are highly exposed to climate risks, yet more than 60% of the people in Asia and the Pacific work in sectors highly susceptible to changing weather patterns, including some of the region’s most vulnerable populations. Using financial risk management products to manage this exposure can increase investment into these sectors and foster their growth.

  • Address extreme weather events

Products such as insurance can help improve the resilience of vulnerable and low-income populations by enhancing their financial preparedness for extreme weather events, in turn supporting more rapid recovery.

ACliFF’s credit enhancement products are supporting the structuring of renewable energy projects in Uzbekistan and the Pacific Islands.

The fund is exploring how financial risk management products can incentivize green lending in Kazakhstan.

ACliFF is providing seed grants to start-ups working on innovative technology-related climate solutions across Asia and the Pacific.

ACliFF is also supporting the development and roll out of disaster insurance solutions for city governments in the Philippines, as well as for micro- small- and medium-enterprises through the V20’s Sustainable Insurance Facility

ACliFF is a multi-donor trust fund administered by ADB, established with financial support from the Government of Germany’s BMZ.

ACliFF supports the achievement of the targets of the Paris Climate Agreement…

…and complements other international initiatives, such as the InsuResilience Global Partnership, and it’s Vision 2025 target to cover 500 million poor and vulnerable individuals against climate and disaster shocks by 2025.  ACliFF also supports the V20’s Sustainable Insurance Facility in the development of climate and disaster risk insurance solutions in V20 economies of the region.    

To find out more, get in touch with the ACliFF Fund Management Team.

And learn about how ACliFF is supporting ADB to achieve a prosperous, inclusive, resilient and sustainable Asia and the Pacific.