The Green Climate Fund (GCF) has allocated USD300 million to the Asian Development Bank (ADB) to finance their initiative to shape an environmentally sustainable recovery in Southeast Asia.
Initially, the funds will be used by the Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility (ACGF) Green Recovery Program (GRP) to leverage more than USD4 billion in capital from development and private partners. Till date, ACGF has received USD1.4 billion.
The use of the funds will be prioritised on projects in the Philippines, Indonesia, Cambodia and Laos. The GRP will extend loans and technical assistance to nearly 20 infrastructure projects in ASEAN all of which will use green finance instruments and techniques. The projects are expected to cut emissions by 119 million tonnes and produce 340,000 jobs over 30 years in sectors such as renewable energy, green transport, and energy efficient systems.
The programme will aid the ASEAN countries to devise green stimulus packages and bridge the gap in green infrastructure financing by promoting the inflow of green capital from banks and investors by increasing the returns and reducing the risks associated with investments in sustainable infrastructure.