ADB, Canada launch $255-million fund for private sector climate action

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

The fund, known as the Canadian Climate and Nature Fund for Private Sector in Asia (CANPA), aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions while also advancing gender equity. 

ADB said Canada is contributing CA$350 million for project investments and CA$10 million for technical assistance.

CANPA, which will be administered by ADB on behalf of Canada, seeks to help private sector companies reduce their greenhouse gas emissions, transition from carbon-based operations, and enhance their climate resilience. 

The fund aims to mitigate risks and make viable projects feasible for the market, particularly those that would not proceed based solely on commercial considerations. 

Additionally, the fund aims to empower women and girls by supporting their involvement in a fair transition. 

It will also finance nature-based solutions, such as sustainable agriculture and aquaculture, to preserve, manage, and rehabilitate ecosystems.

“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,” Bhargav Dasgupta,  ADB vice president for market solutions said.

“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,” he added.

The Asia-Pacific region is responsible for over half of global greenhouse gas emissions and is highly vulnerable to the destructive impacts of climate change, such as extreme weather, prolonged droughts, and flooding. 

More than 60 percent of the region's population is employed in sectors that are particularly at risk from climate change.

The funding aims to promote strategic investments by utilizing the ADB’s private sector platform and capabilities, which follows the implementation of the Canadian Climate Fund for the Private Sector in Asia (CFPS) in 2013 and CFPS II in 2017.