The fund, worth approximately CAD 360 million (USD 255 million), will be administered by the ADB on behalf of Canada to help private sector companies reduce their greenhouse gas emissions, transition from carbon-based operations, and improve their climate resilience.

The fund will finance projects that promote sustainable agriculture and aquaculture, protect, manage, and restore ecosystems, and support the engagement of women and girls in a just transition. This initiative is part of a broader effort to accelerate the region's transition to low-carbon and climate-resilient growth by lowering financing risks and making projects more commercially bankable.

The Asia and the Pacific region is responsible for more than half of global greenhouse gas emissions and is susceptible to the most destructive effects of climate change, including extreme weather, prolonged droughts, and flooding. Over 60% of the region's population works in sectors most at risk from climate change. The CANPA fund aims to address these challenges by empowering women and girls and promoting nature-based solutions.

The fund builds upon the success of the Canadian Climate Fund for the Private Sector in Asia (CFPS) and CFPS II, which were launched in 2013 and 2017, respectively. The ADB will manage the fund by leveraging its private sector platform and capabilities to encourage opportunistic investments.

The establishment of the CANPA fund aligns with the ADB's commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. The ADB is owned by 68 members, 49 of which are from the region.

The partnership between Canada and the ADB demonstrates a shared commitment to addressing the pressing issue of climate change and promoting sustainable development in the Asia-Pacific region. By supporting private sector projects that prioritize climate action and nature-based solutions, the CANPA fund has the potential to make a significant impact in reducing greenhouse gas emissions and promoting a more resilient and sustainable future for the region.