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

• Asia, regional (95.00%)
• Oceania, regional (5.00%)

• Energy generation, renewable sources - multiple technologies:
Energy generation, renewable sources - multiple technologies (23210) (20.00%)
Solar energy (23230) (20.00%)
Wind energy (23240) (20.00%)
Geothermal energy (23260) (20.00%)
Biofuel-fired power plants (23270) (20.00%)

• Gender equality (significant objective)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• Climate Change Adaptation (significant objective)
• Children's issues (not targeted)
• Desertification (not targeted)
• Environmental sustainability (cross-cutting) (principal objective)
• Biodiversity (not targeted)
• Participatory development and good governance (not targeted)
• Climate change mitigation (principal objective)
• Urban issues (not targeted)
• Youth Issues (not targeted)
• ICT as a tool for development (not targeted)
• Trade development (not targeted)

This initiative is the second phase of the Canadian Climate Fund for the Private Sector in Asia. It aims to catalyze greater private sector investment in climate change mitigation and adaption projects in low and lower middle income Asian and Pacific countries and upper middle income small island developing states in the region. The Fund provides concessional financing alongside Asian Development Bank resources, to private sector projects that require more generous terms to be viable. The Fund invests in private sector led activities that support countries’ efforts to pursue a low-carbon and climate-resilient development path for the region. This includes activities related to water supply and management, agriculture and forestry, land use management, natural resource management, resilient infrastructure, coastal protection, disaster risk management, clean and renewable energy, sustainable transport, and waste management. Projects supported by the Fund also contribute to increased gender-responsive economic development in eligible countries, and integrate gender equality outputs. Over the life of the Fund, Canada's contribution is expected to leverage up to two times its amount in private sector investment, help reduce or avoid greenhouse gas emissions of up to 20 million tonnes, and support up to 100,000 beneficiaries to adapt to the effects of climate change.

The expected outcomes for this project include: (1) reduced use and production of carbon by firms and individuals in project countries; (2) increased adoption of climate-resilient and adaptive practices by key stakeholders in project countries; and (3) enhanced economic participation of women in climate mitigation and adaptation activities.

Results achieved as of December 2023 include: (1) allocated US$109 million in concessional loans. This is done through 9 different private sector led projects that advance sustainable and inclusive low-carbon and climate-resilient pathways in developing Indo-Pacific countries; (2) will reduce greenhouse gas emissions by around 34 million tons over the fund`s lifetime, equivalent to removing over 8 million cars yearly; (3) will generate over 3,600 gigawatts of renewable energy each year through solar, wind, or hydropower sources; (4) will install over 1,180 megawatts of renewable energy; and (5) increased gender equality and women’s empowerment in 90% of all funded projects. This is done through initiatives helping to create jobs, providing training, promoting gender-responsive workplaces and corporate policies (e.g., anti-sexual exploitation, abuse and harassment policies), gender-inclusive procurement, and support for local women’s entrepreneurship. Since the beginning of this fund to date, Canada’s Concessional financing has contributed to several landmark climate projects in the Indo-Pacific region. This includes the first privately developed utility scale solar projects in Afghanistan, Indonesia and Uzbekistan. It has also supported Southeast Asia’s first and largest large scale floating solar project in Vietnam, Southeast Asia’s largest cross border wind power plant in the Lao People’s Democratic Republic (providing power to neighbouring Vietnam) and Nepal`s first private sector-led hydropower project.

• Proactive disclosure