/Australia Climate Finance Partnership

The Australian Climate Finance Partnership or ACFP is a concessional financing facility funded by the Australian Department of Foreign Affairs and Trade through a grant contribution of up to A$140.0 million ($92.9 million equivalent as of signed cofinancing agreement date). The ACFP is designed to catalyze financing for private sector climate adaptation and mitigation projects in eligible countries in the Pacific and Southeast Asia. The ACFP projects promote recovery from the COVID-19 pandemic, gender equality, and better economic opportunities for women and girls. It responds to market gaps and demand by de-risking and bringing to market high-demonstration impact projects. The fund aims to partially offset the incremental costs associated with climate-proofing infrastructure and agricultural systems in vulnerable countries and regions, particularly in the Pacific.

In 2022, the ACFP supported two new projects. With $10 million cofinancing from the ACFP, ADB signed an equity investment in New Forest’s Tropical Asia Forest Fund 2 (TAFF2). TAFF2 aims to contribute to the growth of sustainable forestry in Southeast Asia and the Pacific by helping sustainably managed plantation companies to scale up their operations. The ACFP also provided a $20 million concessional loan to the VinFast Trading and Production Joint Stock Company (VinFast) to help finance investments in electric mobility in Viet Nam, including e-buses, e-bus manufacturing facilities, and e-vehicle charging stations.