Asian Development Bank

The Asian Development Bank (ADB) has several funding windows that finance low-carbon projects. The Climate Change Fund (CCF) and the ASEAN Catalytic Green Finance Facility (ADCGF) are the most relevant ADB funds for sustainable transport financing.

Climate Change Fund (CCF)

Basic information
  • Created in 2008
  • Accelerates investment in low-carbon and climate resilient development in developing member countries (DMCs) to mitigate and adapt to climate change
  • Key role in mainstreaming climate actions in ADB
Priority areas
  • Adaptation
  • Clean energy, sustainable transport and low-carbon urban development
  • Reduced emission from deforestation and degradation and improved land use management (REDD+)
Financing instruments
  • Grant component of investments
  • Technical assistance (stand-alone and piggy-back or linked to loan)
  • Direct charge
Supported activities
  • Preparation of relevant strategies or action plans for DMCs
  • Investment in climate change mitigation or adaptation measures
  • Development of knowledge products and services related to climate change
  • Facilitating knowledge management activities, including regional conferences and workshops
  • Funding to off-set ADB’s corporate carbon footprint

Find all co-financed projects here.

Who is eligible to receive funding?

All Developing Member Countries (DMCs) of ADB are eligible to receive funding from the CCF.

Application process
  1. Submission of project proposals by ADB user departments to the Climate Change Steering Committee (CCSC) through the fund secretariat
  2. Review of project proposals and recommendations on applications for fund allocation to CCSC by corresponding working groups
  3. Review of applications on six dates: 31 January, 31 March, 31 May, 31, July, 30 September and 30 November (review of direct charge applications on ongoing basis)
Sources and more information: Climate Change Fund (CCF)

ASEAN Catalytic Green Finance Facility (ACGF)

Basic information
  • ASEAN Infrastructure Fund initiative targeted at governments in Southeast Asia
  • Launched in April 2019
  • Owned by the finance ministries of the 10 ASEAN member countries
  • Cofinancing partners: ADB, AFD; AIF; EIB, EU, KfW and the Republic of Korea
  • Preparing and financing infrastructure projects that advance environmental sustainability and contribute to climate targets
  • Providing technical assistance and access to loans from co-financing partners to cover upfront capital investment costs (de-risking)
Strategy

Project origination

  • Identification and screening of infrastructure projects
  • Creation of project pipeline
  • Development of project financing models

Project funding

  • De-risking projects using AIF funds
  • Mobilising co-financing from development partners
  • Catalysing private sector investment

 Policy and knowledge support

  • Green finance trainings
  • Investor roundtable events
  • policy advice and knowledge resources
Priority areas
  • renewable energy and energy efficiency
  • sustainable urban transport
  • water supply and sanitation
  • waste management
  • climate resilient agriculture
Financing instruments

Co-financing in form of loans from the ASEAN Infrastructure Fund (AIF)

Find more information on lending terms here.

Eligibility criteria

Projects are required to be sovereign or sovereign-guaranteed and to have

  • clear environmental goals and targets
  • a financial sustainability plan
  • a roadmap for attracting private capital investment

Find more information on eligibility criteria here.

Application/ project process
  1. Origination
  2. Rapid assessment
  3. Screening and funding interest
  4. AIF Board review
  5. Project preparation and loan approval
More information

Metro Manila, Philippines. Photo by OJ Serrano on Unsplash
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Published by:
Ronja Kwasniok