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ADB’s IF-CAP

 

 Source: ADB

 

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.

ParameterDetails
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.
LaunchAnnounced on 2 May 2023
OwnerAsian Development Bank (ADB)
Initial PartnersDenmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States
Benefits1.      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 MechanismsGlobal Environment Facility (GEF), Green Climate Fund (GCF), Adaptation Fund, and Loss and Damage Fund
Funding SourcesBilateral and multilateral sources, the private sector, and philanthropies including the Global Energy Alliance for People and Planet
AmountThe 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 ADBThe 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.