Canada, ADB launches new $255 million fund to support private sector climate action and nature-based solutions in the Asia-Pacific region

The Government of Canada and the Asian Development Bank (ADB) have announced a partnership to create a new C$360 million ($255 million) trust fund.

In a statement on Monday, ADB said the Canada Climate and Nature Fund for the Private Sector in Asia (CANPA) will support private sector projects in Asia and the Pacific that focus on climate and nature-based solutions while advancing gender equality.

Canada is providing C$350 million ($255 million) in project investments and C$10 million ($7.28 million) in technical assistance.

ADB will administer CANPA on Canada’s behalf to help private sector companies reduce greenhouse gas emissions, transition away from coal-based operations and improve their resilience to climate change.

The fund will reduce the risk of bringing viable projects to market that are unlikely to be purely commercial, while empowering women and girls by supporting their commitment to a just transition.

It will also fund nature-based solutions, such as sustainable agriculture and aquaculture, to protect, manage and restore ecosystems.

“This fund continues and deepens our decade-long partnership with Canada to help Asia-Pacific mobilize private capital to accelerate the fight against climate change,

“CANPA will help accelerate the region’s transition to low-carbon and climate-resilient growth by reducing financing risk and increasing the commercial credibility of projects, with a particular focus on empowering women and girls,” said Bhargav Dasgupta, vice president of market solutions.

It is important to note that the Asia-Pacific region accounts for more than half of global greenhouse gas emissions.

It is vulnerable to the most devastating impacts of climate change, including damage from extreme weather, prolonged droughts and floods.

More than 60 percent of the region’s population works in sectors most vulnerable to the effects of climate change.

The Fund will encourage opportunistic investments by leveraging ADB’s private sector platform and capabilities.

This follows the successful implementation of the Canada Climate Fund for the Private Sector in Asia (CFPS) in 2013 and CFPS II in 2017.

ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while maintaining efforts to eradicate extreme poverty.

Founded in 1966, it has 68 members, including 49 from the region.

ADB and LPBank sign $80 million loan package to increase access to finance for women-led SMEs in Vietnam