Climate Action Catalyst Fund

ADB has established the Climate Action Catalyst Fund (CACF) as a first-of-its-kind carbon fund under the Paris Agreement, which commenced operations on 1 January 2024.

The CACF is a multi-partner, partner-governed trust fund, open to financial contributions from national and subnational governments or their agencies or any qualifying public or private sector entities from ADB member countries. The CACF aims to mobilize more than $100 million of innovative carbon finance to catalyze investments in transformative mitigation actions in developing member countries (DMCs) by purchasing carbon credits generated by cooperative approaches under Article 6. To date, ADB has signed a Contribution Agreement with the Swedish Energy Agency for its contribution of SKR300 million (equivalent to about $27 million) to the fund.

The CACF will provide up-front finance to high-impact climate mitigation actions for the future delivery of carbon credits under long-term transactions. It will support activities that provide climate change mitigation and sustainable development benefits in DMCs, help them achieve their Nationally Determined Contributions cost-effectively, and raise ambition over time. The CACF will give a strong price signal and position ADB as a bold prime mover in developing international carbon markets under Article 6 of the Paris Agreement.