The Asian Development Bank (ADB) has launched its Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), which is expected to generate up to $15 billion in new loans for climate projects in the region. The initial partners of IF-CAP include Denmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States. These partners are discussing providing grants and guarantees for ADB’s sovereign loan portfolios.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while also eradicating extreme poverty. IF-CAP financing will contribute to ADB’s raised ambition of $100 billion from its own resources for climate change for 2019-2030. The model of ‘$1 in, $5 out’ is being used for IF-CAP, meaning the initial ambition of $3 billion in guarantees could generate $15 billion in loans for climate projects.
ADB President Masatsugu Asakawa will discuss the economic outlook for Asia and the Pacific, including challenges such as climate change and food security. ADB is implementing reforms to promote innovative climate financing, expand lending capacity, and introduce a new operating model to better serve developing member countries. The Rebounding Asia and the Pacific: Forging the Path Forward event, ahead of the Annual Meeting in Incheon, will include a conversation with ADB President Asakawa.
ADB’s Innovative Finance Facility for Climate in Asia and the Pacific could provide significant support for the region’s fight against climate change. ADB is dedicated to supporting a sustainable and resilient Asia and the Pacific while also working to eliminate extreme poverty. The new model of financing is expected to make a significant impact in the region and help achieve ADB’s goals for the next decade.