ADB Announces IF-CAP, New Program to Accelerate Billions in Climate Change Financing
Recently Asian Development Bank (ADB) has announced “Innovative Finance Facility for Climate in Asia and Pacific” (IF-CAP).
- IF–CAP is a multi-donor funding partnership facility. It aims to increase funding for accelerated action against climate change in Asia and the Pacific.
- IF-CAP is a flagship program of the Asian Development Bank (ADB). Initial partner countries for the program include Denmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States.
- This is the first time a multilateral development bank has launched such a programme.
Why is IF-CAP needed?
- Asia and the Pacific region are more vulnerable to the effects of climate change (such as cyclones, droughts, heat waves, floods and sea level rise).
- There are large gaps in the climate finance needed to tackle climate change.
Benefits of IF-CAP –
- Multiplier effect: For every $1 in funding guaranteed, ADB can scale it up to $5. This would go a long way in bridging the shortfall in climate finance.
- This financing facility will help vulnerable countries in Asia and the Pacific to meet their mitigation and adaptation goals.
- The initiative will help achieve ADB’s ambitious target of mobilizing $100 billion in climate finance in 2019-30.
Other major mechanisms of climate finance:
- Global Environment Facility (GEF),
- Green Climate Fund (GCF),
- Adaptation Fund, Loss and Damage Fund etc.
Asian Development Bank (ADB)
ADB was established in 1966 with headquarters in Manila (Philippines). A resolution was adopted at the First Ministerial Conference on Asian Economic Cooperation in 1963 for its establishment. The conference was organized by the United Nations Economic Commission for Asia and the Far East.
Promote economic development and cooperation and to eradicate extreme poverty in Asia. For this objective, it provides loans, technical assistance, grants and equity investments.
- India is also a member of its total 68 members.
- Its supreme policy-making body is the Board of Governors. It consists of one representative from each member country.
- ADB’s five largest shareholder countries are (in order): Japan, the United States, The People’s Republic of China, India, and Australia.
Source – The Hindu