Asia-Pacific Climate Finance Fund

The Asia-Pacific Climate Finance Fund (ACliFF) supports the development and implementation of financial risk management products that can help unlock capital for climate investments and improve resilience to climate change impacts. ACliFF is supporting new, innovative, and commercially viable financial risk management products to expand climate investment and support the attainment of the following objectives: (i) scaling up the adoption of climate technologies, (ii) mobilizing new sources of private sector climate financing, (iii) supporting investment in climate-sensitive sectors, and (iv) addressing extreme weather events. The Government of Germany, through the Federal Ministry for Economic Cooperation and Development, has committed financial support of up to $33 million to ACliFF, with the fund’s availability period extended to 31 December 2025.

In 2023, ACliFF approved financial support for three projects amounting to $4.3 million, contributing to aggregate funding support of $14.1 million. One of these projects is the Accelerating Sustainable System Development Using Renewable Energy Project, which supports de-risking solar independent power producer projects in Maldives. ACliFF is financing a combination of risk mitigation and incentive structures to increase the bankability of the project, catalyze private sector investment, and reduce the tariff paid by end users, which are critical elements for a small island developing state, such as Maldives, in scaling up renewable energy solutions.