The European Union has announced $55 Million USD in support for the Catalytic Green Finance Facility (ACGF) of the Association of Southeast Asian Nations (ASEAN).
ACGF was launched in April 2019 and is designed to provide ASEAN governments with technical assistance and access to sovereign funding for infrastructure projects in the water sector, green energy sector, urban transportation and climate-resilient agriculture. The EU funding, announced 10 February, is earmarked to assist governments prepare and catalyse public and private financing for these projects throughout Southeast Asia.
Separately, the European Investment Bank (EIB) announced a $162 Million USD commitment to the fund demonstrating it continuing support for the development of water, transport, and energy projects in South East Asia.
Consistent with role as the EU`s Climate bank and its focus on climate action in Asia, the EIB support for ACGF will also improve environmental sustainability and climate resilience of ASEAN member countries.
There is an estimated $100 Billion USD annual funding gap for infrastructure projects in Southeast Asia. The ACGF is part of the ASEAN Infrastructure Fund and is managed by Asian Development Bank, who itself is focusing its financing support on green infrastructure and climate-resilience projects. Agence Française de Développement, the European Investment Bank, German development cooperation through KFW, and the Government of the Republic of Korea also participate in funding ACGF.
Anouj Mehta, ACGF Unit Head at ADB’s Southeast Asia Regional Department, said: “Our joint support through the ASEAN Catalytic Green Finance Facility will help ASEAN member states fight climate change; improve air, soil, and water quality; and improve environmental protection.”