Canada and ADB Launch CANPA to Advance Climate and Nature Solutions in Asia-Pacific

This fund aims to bolster private-sector projects across Asia and the Pacific focused on climate and nature-based solutions, with a strong emphasis on advancing gender equity.


Devdiscourse News Desk | Manila | Updated: 18-06-2024 12:48 IST | Created: 18-06-2024 12:48 IST
Canada and ADB Launch CANPA to Advance Climate and Nature Solutions in Asia-Pacific
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The Government of Canada and the Asian Development Bank (ADB) have teamed up to establish the Canadian Climate and Nature Fund for Private Sector in Asia (CANPA), a substantial Can$360 million initiative (approximately $255 million USD). This fund aims to bolster private-sector projects across Asia and the Pacific focused on climate and nature-based solutions, with a strong emphasis on advancing gender equity.

Key Details of CANPA:

Fund Allocation:

Total Fund: Can$360 million (Can$350 million for project investments + Can$10 million for technical assistance).

ADB will manage CANPA on behalf of Canada.

Objectives:

Climate Focus: Support private-sector initiatives to reduce greenhouse gas emissions, transition from carbon-based operations, and enhance climate resilience.

Nature-based Solutions: Promote sustainable agriculture, aquaculture, and ecosystem management to protect and restore natural environments.

Gender Empowerment:

CANPA aims to empower women and girls by facilitating their involvement in a just transition towards climate-resilient economies.

Regional Context:

Asia-Pacific accounts for over 50% of global greenhouse gas emissions and faces severe climate impacts, including extreme weather events, droughts, and floods.

More than 60% of the region's population works in sectors highly vulnerable to climate change.

Market Solutions and Viability:

The fund will mitigate financial risks to make viable projects more commercially attractive, fostering a conducive environment for private capital investments.

It builds on the success of previous initiatives like the Canadian Climate Fund for the Private Sector in Asia (CFPS) launched in 2013 and CFPS II in 2017.

Statements from Stakeholders:

Bhargav Dasgupta, ADB Vice-President for Market Solutions: "CANPA will accelerate Asia-Pacific's shift towards low-carbon, climate-resilient growth by enhancing project bankability and reducing financing risks. It underscores our longstanding partnership with Canada to mobilize private capital for climate action, with a specific focus on empowering women and girls."

CANPA represents a significant commitment from Canada and ADB to combat climate change and promote sustainable development in Asia-Pacific. By supporting innovative, private-sector-driven climate and nature solutions, the initiative aims to address pressing environmental challenges while fostering inclusive economic growth and gender equality across the region.

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