The government of Canada and the Asian Development Bank (ADB) have announced a partnership to create a new CAD 360 million ($255 million) trust fund.

ADB said in a statement on Monday that the Canadian Climate and Nature Fund for Private Sector in Asia (CANPA) will support private-sector projects in Asia and the Pacific focused on climate and nature-based solutions while accelerating gender equity.

Canada is providing CAD 350 million ($255 million) for project investments and CAD 10 million ($7.28 million) for technical assistance.

ADB will administer CANPA on behalf of Canada to help private sector companies lower their greenhouse emissions, transition from carbon-based operations, and improve their climate resilience.

The fund will lower risks to bring viable projects to market that would be unlikely to proceed solely on a commercial basis, while empowering women and girls by supporting their engagement in a just transition.

It will also finance nature-based solutions such as sustainable agriculture and aquaculture to protect, manage, and restore ecosystems.

“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,

“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,” said Vice-President for Market Solutions Bhargav Dasgupta.

It is noted that the Asia and the Pacific region is responsible for more than half of global greenhouse gas emissions.

It is susceptible to the most destructive effects of climate change, including damage from extreme weather, prolonged droughts, and flooding.

More than 60 percent of the region’s population works in sectors most at risk from climate change.

The fund will encourage opportunistic investments, leveraging ADB’s private sector platform and capabilities.

It follows the successful deployment of the Canadian Climate Fund for the Private Sector in Asia (CFPS) in 2013 and CFPS II in 2017.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Established in 1966, it is owned by 68 members — 49 from the region.

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