The Government of Canada, in collaboration with the Asian Development Bank (ADB), has announced a partnership to establish the Canadian Climate and Nature Fund for Private Sector in Asia (CANPA). This new $360 million trust fund aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equity.
Key Details of CANPA
Funding Allocation
- Total Fund: Can$360 million
- Project Investments: Can$350 million
- Technical Assistance: Can$10 million
Objectives of CANPA
The CANPA fund will be administered by ADB on behalf of Canada to achieve the following objectives:
- Climate and Nature-Based Solutions:
- Support private sector companies in lowering greenhouse emissions.
- Assist in the transition from carbon-based operations.
- Improve climate resilience through sustainable projects.
- Gender Equity:
- Empower women and girls by supporting their engagement in a just transition.
- Promote gender equity in all funded projects.
- Nature-Based Solutions:
- Finance projects in sustainable agriculture and aquaculture.
- Protect, manage, and restore ecosystems.
Strategic Importance
“This fund continues and deepens our decade-long partnership with Canada to help Asia and the Pacific mobilize private capital to advance the fight against climate change,” said Vice-President for Market Solutions Bhargav Dasgupta. “CANPA will help accelerate the region’s transition to low carbon and climate-resilient growth by lowering financing risks and making projects more commercially bankable, with a specific emphasis on empowering women and girls.”
Climate Change Challenges in Asia and the Pacific
- High Emissions: The Asia and the Pacific region is responsible for more than half of global greenhouse gas emissions.
- Vulnerability: The region is highly susceptible to climate change effects, such as extreme weather events, prolonged droughts, and flooding.
- Economic Impact: Over 60% of the region’s population works in sectors most at risk from climate change.
Encouraging Private Sector Investments
The CANPA fund aims to leverage ADB’s private sector platform and capabilities to encourage opportunistic investments. The goal is to lower the risks of viable projects that may not proceed solely on a commercial basis, thus making them more attractive to private investors.
Building on Past Successes
The CANPA initiative follows the successful deployment of two previous funds:
- Canadian Climate Fund for the Private Sector in Asia (CFPS) in 2013
- CFPS II in 2017
These funds have demonstrated the effectiveness of mobilizing private capital for climate action in the region.
Step Forward
The launch of the CANPA fund marks a significant step forward in addressing climate change and promoting sustainable development in Asia and the Pacific. By supporting private sector initiatives and emphasizing gender equity, CANPA aims to create a resilient and inclusive future for the region.