Asian Development Bank
Expanded climate finance ambition is a key element of ADB’s efforts to support its Developing Member Countries (DMCs). In 2018, ADB committed to ensuring at least 75% of the total number of its operations support climate action and its own climate finance resources reach at least a cumulative $100 billion by 2030. There are currently 18 funds managed by the ADB with transportation priorities. Two funding windows that focus on additionality-based climate financing are listed below.
A document with all 18 funds is linked at the end of the article.
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
- Submission of project proposals by ADB user departments to the Climate Change Steering Committee (CCSC) through the fund secretariat
- Review of project proposals and recommendations on applications for fund allocation to CCSC by corresponding working groups
- 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
- Origination
- Rapid assessment
- Screening and funding interest
- AIF Board review
- Project preparation and loan approval
More information
Author(s)
