Context: The Asian Development Bank (ADB) has announced the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP) program to accelerate climate change financing in the region.
|IF-CAP is the first-of-its-kind multi-donor financing partnership facility with the goal of scaling-up finance for accelerated action against climate change in Asia and the Pacific.|
|Launch||Announced on 2 May 2023|
|Owner||Asian Development Bank (ADB)|
|Initial Partners||Denmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States|
|Benefits||1. The multiplier effect of up to $5 in much-needed climate finance for every $1 of guarantees (model of ‘$1 in, $5 out’)
2. Financing will help vulnerable countries in Asia and the Pacific region meet their mitigation and adaptation goals.
3. Support ADB’s raised ambition for $100 billion in climate finance from 2019-2030.
|Financing Mechanisms||Global Environment Facility (GEF), Green Climate Fund (GCF), Adaptation Fund, and Loss and Damage Fund|
|Funding Sources||Bilateral and multilateral sources, the private sector, and philanthropies including the Global Energy Alliance for People and Planet|
|Amount||The initial ambition of $3 billion in guarantees could create up to $15 billion (model of ‘$1 in, $5 out’) in new loans for much-needed climate projects across Asia and the Pacific.|
|About ADB||The Asian Development Bank (est. 1966; HQ: Manila, Phillippines) is a regional development bank committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.|