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



Overview 

CA-3-M013850001
$75,000,000
Asian Development Bank (46004)
2013-03-26 - 2040-03-31
Operational
Global Affairs Canada
MFM Global Issues & Dev.Branch

Country / region 

• Asia, regional (100.00%)

Sector 

• 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%)

Policy marker 

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

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 investment period, the Fund also provides almost $7.4 million in 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 27-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 December 2022 include: (1) allocated $US60.3 million in concessional loans across 5 renewable energy projects and one green housing project. These projects include the Sarulla Geothermal Power Project in Indonesia, a Hydropower Project in Georgia, a large-scale Floating Solar Energy Project in Vietnam, and the India Infoline Finance Limited (IIFL) Access to Affordable Green Housing for Women Project; (2) reduced 1.5 million tons of CO2 emissions per year, exceeding the annual target of 750,000 tons. This is equivalent to removing over 330,000 cars off the road in North America each year; and (3) installed 567 megawatts of renewable energy generation capacity.

Budget and spending 


Original budget $0
Planned disbursement $0
Transactions
Country percentages by sector
Type of finance Reimbursable grant
Collaboration type Bilateral
Type of aid Contributions to specific-purpose programmes and funds managed by implementing partners
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