The Asian Development Bank (ADB) has partnered with the Government of Canada to establish a new trust fund to support greater private sector participation — while improving gender equality — in the bank’s climate change mitigation and adaptation efforts.
The agreement was announced today by ADB President Takehiko Nakao and Celina Caesar-Chavannes, Parliamentary Secretary to Canada’s Minister of International Development, on the sidelines of the Annual Meeting of ADB’s Board of Governors in Yokohama, Japan.
The fund, called the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), will be capitalized by CA$200 million ($151 million) from the Canadian government, and will provide cofinancing for ADB private sector projects focused on climate change mitigation and adaption. The fund will target climate projects that promote the empowerment of women and girls. ADB will administer and manage the fund, including the selection and approval of projects, on behalf of the Canadian government.
“We welcome the establishment of this fund and the initiative from the Government of Canada in helping Asia and the Pacific reduce carbon emissions and become more climate resilient,” said Mr. Nakao. “The fund will help us to provide effective support for private sector projects that address climate change and improve gender equality outcomes for women and girls.”
The fund will cofinance projects in ADB’s low and lower-middle-income developing member countries. Additional financing from private sector sponsors, commercial banks, ADB, and other financial institutions is expected to mobilize an additional $600 million.
The fund follows the success of the $81.5 million Canadian Climate Fund for the Private Sector in Asia (CFPS) established in March 2013, which also provided cofinancing for private sector climate activities in Asia and the Pacific. CFPS has been instrumental in ADB climate mitigation and adaptation projects in Bhutan, Georgia, Indonesia, and Myanmar. CFPS II is part of the Canadian government’s commitment to provide $2 billion to support developing countries transition to low-carbon, climate-resilient economies.
