The Asian Development Bank (ADB) has launched a new program that aims to significantly ramp up efforts against climate change in the region.

During the opening day of ADB’s 56th Annual Meeting in Incheon, South Korea, the Manila-based multilateral institution announced the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP).

ADB President Masatsugu Asakawa said this “landmark” program would help free up capital to accelerate new loans for climate projects.

“The climate events we have experienced over the past 12 months will only increase in intensity and frequency, so we must take bold action now. IF-CAP is an exciting, innovative program that will have a real impact,” Asakawa said.

IF-CAP's initial partners are Denmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States, which are currently in discussions with ADB about providing a range of grants for project preparation along with guarantees.

Asakawa said the reduced risk exposure created by the guarantees will allow ADB to free up capital to accelerate new loans for climate projects.

With a model of ‘$1 in, $5 out’, the initial ambition of $3 billion in guarantees could create up to $15 billion in new loans for much-needed climate projects across Asia and the Pacific.

“A leveraged guarantee mechanism for climate finance has never before been adopted by a multilateral development bank,” ADB said.

IF-CAP financing will contribute to ADB’s raised ambition for $100 billion from its own resources for climate change for 2019 to 2030.

ADB is in discussions with potential partners—such as bilateral and multilateral sources, the private sector, and philanthropies, including the Global Energy Alliance for People and Planet—to catalyze climate investments.