Climate Change Fund

What is the fund?

The Climate Change Fund (CCF) was established in May 2008 to facilitate greater investments in developing member countries (DMCs) to effectively address the causes and consequences of climate change, by strengthening support to low-carbon and climate-resilient development in DMCs. CCF plays a key role in mainstreaming climate actions in ADB’s operations and is critical for achieving the climate targets under Strategy 2030’s third operational priority of tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.

The fund provides financing through: grant component of investments, technical assistance (stand-alone and piggy-back or linked to loan), and direct charge. It has three components: (i) adaptation, (ii) clean energy development, and (iii) reduced emissions from deforestation and forest degradation, and improved land use management (REDD+ and land use).

What are the fund’s priorities?

The fund focuses on three areas:

• Adaptation
• Clean energy, sustainable transport and low-carbon urban development
• Reduced emission from deforestation and degradation and improved land use management (REDD+)

What activities are supported by the fund?

The following types of activities may qualify for the fund's support:

• Preparation of relevant strategies or action plans for DMCs
• Investment in climate change mitigation or adaptation measures
• Development of knowledge products and services related to climate change
• Facilitating knowledge management activities, including regional conferences and workshops
• Funding to off-set ADB’s corporate carbon footprint

Who are eligible to receive funding?

All DMCs are eligible for the fund resources.

Project proposals are submitted by ADB user departments to the Climate Change Steering Committee through the fund secretariat. Project proposals are reviewed by the working groups (i.e., Adaptation and Land Use Working Group and Clean Energy Working Group) who provide the recommendations on the applications for the fund allocation to the CCSC. The CCSC approves the fund allocations to projects. In general, applications are reviewed in six batches and are due on 31 January, 31 March, 31 May, 31 July, 30 September, and 30 November. Direct charge applications are reviewed on ongoing basis.

Who supports the fund?

CCF is supported by ADB's net income from ordinary capital resources.

Fund status

The fund has received a total of $98 million ADB financing. As of 31 March 2021, pending CTL financial statements/updates, $75.4 million of the $98 million total fund resources (net of savings) has been allocated to 126 projects—46 on clean energy development, 73 on adaptation, 11 on REDD+ and land use, and one (1) on climate finance readiness.