Funds and Resources

ADB offers loans, grants, and technical assistance from Special Funds, Trust Funds, and other sources to help reduce poverty in Asia’s poorest countries.

Australian Climate Finance Partnership

What is the partnership?

The Australian Climate Finance Partnership (ACFP) is a concessional financing facility managed by the Asian Development Bank (ADB) and funded by the Australian Department of Foreign Affairs and Trade (DFAT) through a grant contribution of up to AU$140 million.

What are the priorities?

The ACFP is designed to catalyze financing for private sector climate adaptation and mitigation projects in eligible countries in the Pacific and Southeast Asia. ACFP projects will also promote recovery from the COVID-19 (Coronavirus) pandemic, as well as gender equality and better economic opportunities for women and girls.

The ACFP will respond to market gaps and demand, by de-risking and bringing to market high demonstration impact projects. The Fund will also aim to partially offset the incremental costs associated with climate proofing infrastructure and agricultural systems in vulnerable countries and regions, particularly in the Pacific.

The ACFP will provide cofinancing to nonsovereign climate projects at different stages of development, including early stage, growth stage, and greenfield projects. It will seek to support a range of private sector financing modalities including project finance, corporate finance, public–private partnerships, joint ventures, privatizations, trade finance, and supply chain finance. The ACFP offers a range of financing products to best tailor financing solutions to clients, including debt (USD and local currency), equity, quasi-equity and mezzanine financing, guarantees / risk sharing, and technical assistance.

The ACFP will support projects with strong anticipated development impacts and alignment with the strategies of ADB and DFAT. Development goals include:

  • Greenhouse gas emission reductions;
  • Individuals and communities better equipped to adapt to the impacts of climate change.
  • Gender equality and the empowerment of women and girls;
  • Private sector development;
  • Improved access to financing for greenfield construction and early-stage development;
  • Mobilization of public and private financing;
  • Creation of new job opportunities; and
  • Improved energy security and clean energy capacity.

What kind of activities are eligible for financing?

Eligible project types include the following climate mitigation and adaptation related subsectors: renewable energy, sustainable transport, energy efficiency, land-use and agribusiness, water supply and sanitation/wastewater treatment, solid waste management, blue carbon, agriculture and forestry, land use management, resilient infrastructure, marine and coastal ecosystem protection, healthcare, and disaster risk management. Other project types will also be considered if they can demonstrate positive climate outcomes.

Who is eligible to receive the support?

The ACFP offers financing to nonsovereign entities (see below) including private sector companies, financial institutions, and specialized fund managers developing projects in the following ADB developing members:

  • Pacific: Cook Islands, the Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, and Vanuatu
  • Southeast Asia: Cambodia, Indonesia, Lao People’s Democratic Republic, Myanmar, Philippines, Viet Nam

Who supports the partnership?

The Australian Department of Foreign Affairs and Trade is supporting the ACFP with a grant contribution of up to AU$140 million.