ADB, partners signal to climate change action at COP29 event for IF-CAP

Source: ADB

ADB President Masatsugu Asakawa told attendees IF-CAP was among the most innovative climate financing programs anywhere in the world and would be a vital tool for combating climate change in Asia and the Pacific.

“We know that the battle against climate change is the major challenge of our time,” Mr. Asakawa said. “It is a challenge that requires transformative, decisive, and innovative action—which IF-CAP will provide. Among all multilateral development banks, it puts ADB at the forefront of climate finance innovation. With a multiplier effect of 4.5, it will unleash billions of dollars in much-need investment for combating climate change in Asia and the Pacific.” 

Joining Mr. Asakawa at the event were representatives from IF-CAP partners: Australia Assistant Minister for Climate Change and Energy Josh Wilson, Denmark Under-Secretary of State for Development Cooperation Ole Thonke, Japan Deputy Vice Minister for International Affairs Kazuki Watanabe, Republic of Korea Deputy Minister for International Affairs Ji-young Choi, Norway Special Envoy for Climate and Security Hans Olav Ibrekk, Sweden Climate Ambassador from Ministry of Climate and Enterprise Mattias Frumerie, United Kingdom Foreign Secretary David Lammy, United States Assistant Secretary of the Treasury Alexia Latortue, and Global Energy Alliance for People and Planet Chief Executive Officer Woochong Um. 

Azerbaijan Minister of Finance and ADB Governor Samir Sharifov also attended representing the COP29 Presidency.

IF-CAP is targeting total guarantees of $2.5 billion, which will go toward covering parts of ADB’s existing loan portfolio. That will allow ADB to free up an estimated $11.25 billion in dedicated climate financing for the region. ADB has already welcomed guarantees of close to $2.2 billion: $1 billion from the United States, $600 million from Japan (plus a $25 million grant), $280 million from the United Kingdom, $200 million from Australia, and $100 million from Denmark through Investment Fund for Developing Countries (IFU). IF-CAP responds directly to the Group of Twenty (G20) recommendations that MDBs increase their lending through novel approaches such as risk transfers.

Asia and the Pacific require an estimated $102 billion to $431 billion per year to adapt to global warming, according to ADB’s Asia-Pacific Climate Report 2024. This far exceeds the $34 billion of adaptation finance that was tracked going into the region in 2021–2022. 
To help address the region’s climate investment needs, ADB is aiming for climate finance to reach 50% of its total annual committed financing volume by 2030. The bank is committed to reaching more than $100 billion in cumulative climate finance, for both mitigation and adaptation, from 2019 to 2030./.