ADB Launches 'IF-CAP' with South Korea and 5 Other Countries to Address Climate Change

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, is delivering the opening speech at the 'ADB Project Plaza' held on the 3rd at Songdo Convensia, Yeonsu-gu, Incheon.
[Photo by Yonhap News]

The Asian Development Bank (ADB), together with six leading countries in climate change (Korea, the United States, the United Kingdom, Japan, Sweden, and Denmark), officially announced the launch of the Asia-Pacific Climate Innovation Finance Facility (IF-CAP) on the 4th after 1 year and 2 months of working-level consultations.

IF-CAP is an innovative financial facility that utilizes leverage effects through guarantees, the first of its kind among multilateral development banks.

IF-CAP reinsures climate change projects with government guarantees previously supported by ADB, strengthening ADB’s credit and expanding its lending capacity. The leverage effect is up to five times, with ADB aiming to increase its lending capacity by up to $15 billion through $3 billion in IF-CAP guarantees.

ADB has raised its climate finance support target from $80 billion to $100 billion cumulatively by 2030.

The Ministry of Economy and Finance explained, "IF-CAP was designed as a key means to achieve ADB’s goal of becoming a ‘climate bank,’ and ADB plans to support various projects for climate change mitigation and adaptation through IF-CAP."

Bang Ki-sun, First Vice Minister of the Ministry of Economy and Finance, said in a congratulatory speech, "Although Korea is a voluntary contributor to climate crisis response, it led partner countries’ participation from the initial design phase of IF-CAP," adding, "We will actively support IF-CAP to promote climate investments in the Asia-Pacific region and contribute to strengthening resilience."

He continued, "Through the Korea-ADB Climate Technology Hub (K-Hub), scheduled to open next year, we will share climate technologies and know-how with developing countries in the region, establishing a platform where donor countries, developing countries, and related companies can share technology, knowledge, and networks together," he emphasized.

This content was produced with the assistance of AI translation services.