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5/2/23, 5:11 PM

Statement by Ambassador Chantale Wong, U.S. Executive Director to the Asian Development Bank, on the Launch of the Innovativ…

U.S. DEPARTMENT OF THE TREASURY
Statement by Ambassador Chantale Wong, U.S. Executive
Director to the Asian Development Bank, on the Launch of the
Innovative Finance Facility for Climate in Asia and the Pacific
(IF-CAP)
May 2, 2023

As an ADB shareholder, the United States welcomes the establishment of the Innovative Finance
Facility for Climate in Asia and the Pacific (IF-CAP), a strong signal of the Asian Development
Bank (ADB)’s ambition to support sustainable infrastructure, diversify energy systems, boost
investment in adaptation, and strengthen resilience in the Asia-Pacific region. IF-CAP will
complement G7 efforts to increase public and private investment in high-quality, sustainable
infrastructure in developing countries under the Partnership for Global Infrastructure and
Investment (PGII), a G7 initiative.
To maximize our development impact, the United States is actively encouraging all multilateral
development banks to develop new, innovative financing mechanisms to mobilize public and
private sector financing. We commend the ADB for rising to the challenge. The structure of this
innovative financing mechanism is consistent with the recommendations of the G20 Multilateral
Development Banks’ Capital Adequacy Frameworks review to increase lending capacity.
The United States is proud to have partnered closely in the design of the IF-CAP with ADB and
our fellow prospective donors. During the design process, all founding donors unanimously
agreed that IF-CAP newly enabled lending will be targeted to the counties most vulnerable to
the effects of climate change and those most in need of development finance. This includes
least developed countries, small island developing states, lower-middle income countries, and
certain middle-income countries.*
If it meets its financing target of $3 billion in guarantees, IF-CAP is expected to enable $15 billion
in new lending for much-needed investments in climate mitigation, adaptation, and resilience
across Asia and the Pacific. This represents concrete action to scale up quality investment in
the region.

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5/2/23, 5:11 PM

Statement by Ambassador Chantale Wong, U.S. Executive Director to the Asian Development Bank, on the Launch of the Innovativ…

We look forward to continuing to work closely with ADB and other prospective donors on
finalizing the design of IF-CAP and then swiftly turning to implementation so that it benefits
those communities and countries most in need.

* Middle-income countries below the income threshold that triggers the process of graduating
from regular ADB assistance (C2 and below).

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