The Asian Development Bank (ADB) along with Southeast Asian governments and major development financiers has launched the “ASEAN (Association of Southeast Asian Nations) Catalytic Green Finance Facility,” a new initiative that aims to mobilize more than $1 billion in green infrastructure investments across Southeast Asia.

The initiative is expected to provide loans and technical assistance for sovereign green infrastructure projects such as sustainable transport, clean energy, and resilient water systems. It also aims to accelerate private capital by mitigating risks through innovative finance structures.

The facility includes $75 million from the ASEAN Infrastructure Fund (AIF), $300 million from ADB, €300 million ($336 million) from KfW, €150 million ($168 million) from the European Investment Bank, and €150 million ($168 million) from Agence Française de Développement. The Organisation for Economic Co-operation and Development and the Global Green Growth Institute will support knowledge sharing and capacity building on green finance. The Overseas Private Investment Corporation has expressed interest in potential financing for emerging projects.

The facility is part of a new “Green and Inclusive Infrastructure Window” under the AIF, a regional financing initiative established by ASEAN governments and ADB in 2011 and administered by ADB. The fund has committed $520 million for energy, transport, water, and urban infrastructure projects across the region.

Last month, the ADB and Asia’s Private Infrastructure Fund (LEAP) signed an agreement to provide an $18.7 million loan to develop 15 MW of solar power project in Mongolia.

In February 2019, ADB invested $20 million in the first climate bond issuance of AC Energy, a wholly-owned subsidiary of Ayala Corporation in the Philippines. This was the first Climate Bond Initiative (CBI) certified US dollar climate bond in Southeast Asia listed on the Singapore Stock Exchange.