Canada And ADB Launch $360 Million Fund To Boost Climate And Nature Projects In Asia

In a joint effort to bolster environmental sustainability across Asia, the Government of Canada and the Asian Development Bank (ADB) have unveiled a groundbreaking partnership to launch the Canadian Climate and Nature Fund for Private Sector in Asia (CANPA). This new trust fund, totaling Can$360 million (approximately $255 million USD), aims to accelerate climate and nature-focused projects while promoting gender equality in the region.

Canada has committed Can$350 million for project investments under CANPA, supplemented by Can$10 million earmarked for technical assistance. Administered by ADB, the fund will play a pivotal role in helping private sector enterprises in Asia lower their greenhouse gas emissions, shift away from carbon-intensive operations, and enhance their resilience to climate impacts.

One of CANPA’s primary objectives is to mitigate financial risks associated with climate projects, thereby facilitating the realization of commercially viable initiatives that might otherwise face barriers to market entry. The fund will also prioritize the empowerment of women and girls by supporting their involvement in a just transition towards sustainable practices.

Projects financed through CANPA will encompass diverse nature-based solutions such as sustainable agriculture and aquaculture, aimed at safeguarding, managing, and restoring critical ecosystems across the region. These initiatives are crucial for Asia and the Pacific, which collectively accounts for more than half of global greenhouse gas emissions and is disproportionately affected by climate change-induced events like extreme weather and water-related disasters.

Bhargav Dasgupta, ADB’s Vice-President for Market Solutions, emphasized the significance of CANPA in accelerating Asia’s shift towards low-carbon, climate-resilient growth. He highlighted the fund’s role in enhancing project bankability and commercial viability, particularly emphasizing gender empowerment as a core aspect of sustainable development.

Building on the success of previous Canadian Climate Funds, including the Canadian Climate Fund for the Private Sector in Asia (CFPS) and CFPS II, CANPA aims to leverage ADB’s extensive private sector networks and capabilities to attract strategic investments. ADB remains committed to advancing sustainable development goals across Asia and the Pacific, striving for inclusive prosperity while addressing climate challenges and eradicating extreme poverty.

This initiative underscores Canada’s ongoing commitment to global climate action and collaboration with international partners to foster sustainable development and resilience in vulnerable regions.