Asia-Pacific Climate Finance Fund

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A multi-donor trust fund established in April 2017, under the auspices of the Asia Development Bank (ADB). The objective of the fund is to support the development and implementation of financial risk management products that can help unlock capital for climate investments and improve resilience to the impact of climate change.

Emphasis is placed on financial risk management products that have been proven elsewhere, but are not yet widely commercially available in ADB’s developing member countries. Financial risk management products supported by the fund satisfy at least one of the following criteria:

Financial risk management products to mobilize new sources of private sector climate financing. The focus will be on products that can help manage risks associated with the initial deployment of new innovative climate financing models, e.g., climate project bonds that can help unlock new sources of untapped private capital.

Financial risk management products to support investment in climate-sensitive sectors, such as agriculture, fisheries, forestry, and water resource management. These products will accelerate investment in climate change adaptation and strengthen resilience in response to slow-onset climate-related risks for crop, fish and livestock farming, and sustainable forestry. They could include, for example, guarantees to ensure that farmers switching to more productive, sustainable, and resilient agricultural inputs and practices receive a livable income during the transition period.

Financial risk management products for extreme weather events. These will help improve the resilience of vulnerable and low-income populations by enhancing the management of risks related to the impact of climate-related disasters. They will include insurance products that can be delivered through alternative distribution channels, including financial technology providers, to reach many beneficiaries cost-effectively

All ADB Developing Member Countries (DMCs) are eligible for financing from the fund.

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Asian Development Bank Funds and Resources