Asia-Pacific Climate Finance Fund (ACliFF)
What is the fund?
The Asia-Pacific Climate Finance Fund (ACliFF) is a multi-donor trust fund established in April 2017. The objective of the fund is to support the development and implementation of financial risk management products that can help unlock capital for climate investments and improve resilience to the impact of climate change.
What are the priorities?
The proposed fund will support the development and implementation of financial risk management products as part of existing and future climate-related projects that would benefit from the provision of such products. Emphasis will be on financial risk management products that have been proven elsewhere, but are not yet widely commercially available in ADB's developing member countries (DMCs).
What kind of activities are eligible for the fund?
Financial risk management products to be supported by the fund will satisfy at least one of the following criteria:
- Financial risk management products to scale up the adoption of climate technologies. These will help to accelerate the uptake and financing of proven climate technologies in new country contexts or markets by transferring initial technology and performance-related risks. The focus will be primarily on small to medium-scale solutions, e.g., energy efficiency, green buildings, distributed renewable energy, and energy storage.
- Financial risk management products to mobilize new sources of private sector climate financing. The focus will be on products that can help manage risks associated with the initial deployment of new innovative climate financing models, e.g., climate project bonds that can help unlock new sources of untapped private capital.
- Financial risk management products to support investment in climate-sensitive sectors, such as agriculture, fisheries, forestry, and water resource management. These products will accelerate investment in climate change adaptation and strengthen resilience in response to slow-onset climate-related risks for crop, fish and livestock farming, and sustainable forestry. They could include, for example, guarantees to ensure that farmers switching to more productive, sustainable, and resilient agricultural inputs and practices receive a livable income during the transition period.
- Financial risk management products for extreme weather events. These will help improve the resilience of vulnerable and low-income populations by enhancing the management of risks related to the impact of climate-related disasters. They will include insurance products that can be delivered through alternative distribution channels, including financial technology providers, to reach many beneficiaries cost-effectively.
Who is eligible to receive the fund?
All ADB DMCs are eligible for financing from the fund.
Who supports the fund?
The Government of Germany is the first contributor to the fund.