Project profile — Canadian Climate Fund for the Private Sector in Asia

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Overview

Overview

Canadian Climate Fund for the Private Sector in Asia - Overview
CA-3-M013850001
$75,000,000
Asian Development Bank (46004)
2013-03-26 - 2037-03-31
Operational
Country / region • Asia, regional (100.00%)
Sector • Energy Generation, Renewable Resources
Energy generation, renewable sources - multiple technologies (23210) (20.00%)
• Energy Generation, Renewable Resources
Solar energy (23230) (20.00%)
• Energy Generation, Renewable Resources
Wind energy (23240) (20.00%)
• Energy Generation, Renewable Resources
Geothermal energy (23260) (20.00%)
• Energy Generation, Renewable Resources
Biofuel-fired power plants (23270) (20.00%)
Policy marker • Environmental sustainability (cross-cutting) (principal objective)
• Climate change mitigation (principal objective)
Description and results

Description

This initiative supports private sector projects across Asia and the Pacific that help countries reduce their carbon footprint and adapt to the adverse impacts of climate change. It focuses on increasing renewable energy and energy efficiency, supporting urban infrastructure and sustainable transportation, and reducing greenhouse gas emissions. It helps countries overcome technology risks and cost hurdles in order to initiate and scale-up projects to reduce greenhouse gas emissions and increase climate resilience. Clean energy projects supported by the Fund may include wind, solar, geothermal and hydro projects. The Fund provides concessional financing to catalyze private sector climate mitigation and adaptation projects that require loans with concessionary terms to be viable. The Fund may provide up to a third of its financing in repayable contributions offered in the local currency, rather than US dollars, to encourage local companies to invest by protecting them from unexpected borrowing costs that might result from fluctuations in the US dollar. All Fund investments are co-financed by the Asian Development Bank. During the six-year investment period, the Fund also provides technical assistance to select private sector projects or public sector projects that improve the enabling environment for private sector investments. Canada's contribution to the Fund is expected to leverage up to US $300 million in private sector investment over the Fund's 24-year life and help to reduce greenhouse gas emissions by up to 750,000 tonnes per annum.

Expected results

The expected intermediate outcomes for this project include: increased implementation of climate change mitigation measures and reduced vulnerability to the adverse effects of climate change.

Results achieved

Results achieved as of June 2018 include five concessional finance projects for renewable energy projects that will install 713 megawatts of renewable energy generation capacity, leading to 1.8 million tons of CO2 emission reductions per year. Projects funded by the Canadian Fund for the Private Sector in Asia include: The Sarulla Geothermal Power Project in Indonesia is supported by a US $20 million concessional loan. It supported the construction and, as of May 2018, the full operation of a 320 megawatts geothermal power facility—the first private geothermal project in 20 years. CFPS’s financing was critical to the project’s go-ahead because it was previously commercially unviable for many years. CFPS lending leveraged over US $1.5 billion in additional financing, including US $516 million from the private sector. Indonesia is targeting 5 gigawatts of geothermal energy generation by 2025, but prior to this project only installed 1.8 gigawatts. The project is expected to generate 2,529 gigawatt hours of energy per year, reducing 1.3 million tons of CO2 emission per year; which is the equivalent of removing over 250,000 cars off the road in North America each year. The Solar Power Independent Power Producer Project in Samoa is supported by a US $1 million concessional loan. It supported the technical due diligence, construction, and operation of a solar power plant’s 1.8 megawatts expansion that, as of June 2018, was operational. Although Samoa has abundant solar resources, most of Samoa’s energy comes from imported diesel. CFPS leveraged US $6 million in additional financing, including $4 million from the private sector which was unable to attract sufficient financing without the CFPS. The project is expected to generate 5.7 gigawatt hours per year, and reduce CO2 by 4,500 per year; which is the equivalent of removing nearly 1,000 cars off the road in North America each year. The Solar Power Project in Cambodia supported the construction and, as of October 2017, operation of Cambodia’s first utility-scale solar power project (10 megawatts) and the first competitive tender for a renewable independent power producer in Cambodia. The project leveraged nearly US $10 million in additional financing, including US $6.4 million from the private sector. The project is supported by a $3.25 million concessional loan. The project is expected to: generate 14 gigawatt hours per year of renewable energy, and reduce CO2 by 9,500 tons per year; which is the equivalent of removing nearly 2,000 cars off the road in North America each year.

Financials

Financials


Original budget $0
Planned Disbursement $0
Transactions
Country Percentages by Sector
Related information

Related information

Canadian Climate Fund for the Private Sector in Asia - Related information
Related activities
Canadian Climate Fund for the Private Sector in Asia – Technical Assistance
Related links
Partner website — Asian Development Bank
Partner website — Asian Development Bank
Global Affairs Canada
MFM Global Issues & Dev.Branch
Aid grant excluding debt reorganisation
Bilateral
Contributions to specific-purpose programmes and funds managed by international organisations (multilateral, INGO)
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