The Asian Development Bank (ADB) has launched the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), a programme that targets a “significant” ramp up in the region’s climate change financing. The programme uses a ‘US$1 in, US$5 out’ model, with an initial ambition of US$3 billion in guarantees targeting the creation of US$15 billion in new loans for “much-needed” climate projects in the Asia Pacific (APAC) region. The initial partners of the programme are Denmark, Japan, the Republic of Korea, Sweden, the UK, and the US, who are currently in discussions with ADB about providing a range of grants for project preparation along with guarantees for parts of ADB’s sovereign loan portfolios. The guarantees will reduce risk exposure, allowing ADB to free up capital to accelerate new loans for climate projects. Masatsugu Asakawa, President at the ADB, said: “The climate events we have experienced over the past 12 months will only increase in intensity and frequency, so we must take bold action now. IF-CAP is an exciting, innovative programme that will have a real impact. And it is another example of how ADB serves as the climate bank for APAC.” The programme will contribute to the development bank’s ambition of raising US$100 billion from its own resources for climate change between 2019-2030.
#ADBANNUALMEETING: ADB has announced a landmark program that — in its scale and scope – will transform climate finance and significantly ramp up support for the region in the battle against climate change.
Read the announcement: https://t.co/fI5OSWyeYq
— Asian Development Bank (@ADB_HQ) May 2, 2023