ASIAN DEVELOPMENT BANK (AsDB)

Published purpose

The Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA) is a partnership between the Government of Canada and the Asian Development Bank (ADB). It aims to support Indo-Pacific developing countries transition to inclusive, low carbon and climate-resilient economies by using blended finance to mobilize private sector investments in climate mitigation and adaptation projects as well as nature-based solutions that advance gender equality in the region. CANPA will provide financing on concessional terms from Canada, alongside ADB resources, to mitigate risks that prevent the private sector from investing in these types of projects. Key sectors for CANPA activities include renewable energy, electric power transmission and distribution, electric mobility and infrastructure, and water supply management. For nature-based solutions projects, primary focus areas include sustainable and climate-smart agriculture, aquaculture, habitat restoration and protection. CANPA builds on Canada’s existing climate funds with the ADB, Phase I and II of the Canadian Climate Fund for the Private Sector in Asia established in 2013 and 2017. CANPA is supported by a Technical Assistance facility to support the preparation and implementation of eligible projects for CANPA concessional financing and to improve market conditions for private sector investments in gender-responsive climate and nature-based solutions. Over the life of the fund, CANPA is expected to mobilize up to 3 times its amount in private sector investment, help reduce and avoid greenhouse gas emissions of up to 40 million tonnes, and support up to 200,000 beneficiaries.