To encourage private sector climate action and nature-based solutions in Asia Pacific, Canada and ADB established $255 M fund
A new trust fund valued at CAD 360 million ($255 million) will be established through a collaboration between the Asian Development Bank (ADB) and the Canadian government.
The Canadian Climate and Nature Fund for Private Sector in Asia (CANPA), according to a statement released by ADB will assist private-sector initiatives in Asia and the Pacific that prioritize climate and nature-based solutions while accelerating gender equity.
For project investments, Canada is contributing CAD 350 million ($255 million), and for technical assistance, it is contributing CAD 10 million ($7.28 million).
On behalf of Canada, ADB will oversee CANPA, which will assist private sector businesses in reducing their greenhouse gas emissions, shifting away from carbon-based operations, and strengthening their climate resilience.
In addition to empowering women and girls by assisting their participation in a just transition, the fund will reduce risks in order to bring feasible projects to market that would be unlikely to proceed solely on a commercial basis.
It will also provide funding for environmentally friendly practices that preserve, manage, and rebuild ecosystems, such as sustainable farming and aquaculture.
“This fund continues and deepens our decade-long partnership with Canada to help Asia and the Pacific mobilize private capital to advance the fight against climate change,
“CANPA will help accelerate the region’s transition to low carbon and climate-resilient growth by lowering financing risks and making projects more commercially bankable, with a specific emphasis on empowering women and girls,” said Vice-President of Market Solutions Bhargav Dasgupta.
More than half of the world’s greenhouse gas emissions are reported to originate from the Asia and Pacific region.
It is vulnerable to the worst consequences of climate change, such as damage from extreme weather events, protracted droughts, and flooding.
Over 60% of the people in the area are employed in industries where climate change poses the greatest threat.
The fund will promote opportunistic investments by utilizing ADB’s resources and platform in the private sector.
It comes after the Canadian Climate Fund for the Private Sector in Asia (CFPS) was effectively implemented in 2013 and expanded upon in 2017 with CFPS II.
