As Asia and the Pacific’s climate bank, ADB is taking a leading role in developing more innovative climate financing solutions to help the region combat climate change.
ADB announced the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), a landmark program which could significantly ramp up support for the region in the battle against climate change.
IF-CAP is a multi-donor financing partnership facility with the goal of scaling-up finance for accelerated action against climate change in Asia and the Pacific.
ADB Climate Envoy Warren Evans joins ADB Insight to discuss how as Asia and the Pacific’s climate bank, ADB is taking a leading role in developing more innovative climate financing solutions to help the region combat climate change.
Asia and the Pacific is uniquely vulnerable to the impacts of climate change, such as hurricanes, droughts, heat waves, floods, and sea-level rises. There is an immense climate financing gap that must be filled to win the battle against climate change.
As Asia and the Pacific’s climate bank, ADB is developing more and more innovative financing models to bridge the financing gap needed to combat climate change. IF-CAP is the result of that.
IF-CAP will use guarantees from partners for leverage to accelerate billions of dollars in much-needed climate change investment -- the first time any multilateral development bank has adopted a program of this kind.
For every $1 of guarantees, ADB will be able to accelerate up to $5 in much needed climate finance.
IF-CAP financing will help vulnerable countries in Asia and the Pacific meet their mitigation and adaptation goals.
IF-CAP will support ADB’s raised ambition for $100 billion in climate finance from 2019-2030.
"IF-CAP is a global first in its scale and scope. It will transform climate finance in two ways.
First, IF-CAP will change the way we do business. The region needs trillions in investment to combat climate change. To help reach that level, we need to maximize our capital in new ways. IF-CAP will multiply ADB’s lending capacity through leverage. This will allow us to crowd in substantially more resources from the private sector, and other investors who share our commitment to climate action.
Second, IF-CAP will change the way we address climate change. Climate change demands innovative and all-encompassing solutions. IF-CAP will provide this. It will be the first ADB financing vehicle to serve as a one-stop shop for climate finance. This will make climate action across sectors and regions possible. And it will support both infrastructure and reforms that address climate changes issues."
- ADB President Masatsugu Asawaka
at the President's press conference at the 56th Annual Meeting
2 May 2023, Incheon, Republic of Korea
A market-based, equitable, and scalable way of accelerating the retirement of coal-fired power plants, while also jumpstarting the growth of renewable energy capacity.
Brings together partners to invest alongside ADB’s own financing under the ASEAN Green Catalytic Financing Facility, and will catalyze $7 billion in public and private capital for green infrastructure projects.
Launched at COP26, it brings together financing partners to support climate adaptation at the local level through research, capacity building, and project preparation.
Since 2015, ADB has raised about $10 billion from green bonds in a wide range of currencies. In 2021, ADB issued its first blue bond, raising around $151 million to fund ocean-related projects.