July 2009
Establishing the Carbon Capture and Storage Fund
under the Clean Energy Financing Partnership
Facility
1.
On 24 April 2007 the Board approved the establishment of the multidonor Clean Energy
Fund (CEF) and similar clean energy trust funds under the Clean Energy Financing Partnership
Facility (CEFPF). The objective of the CEFPF is to improve energy security in developing
member countries (DMCs) and decrease the rate of climate change through increased use of
clean energy.
2.
The CEFPF is a key mechanism to coordinate existing and new resources that are
granted to ADB to promote clean energy through (i) pooled grants through the CEF; (ii) bilateral
grants through clean energy trust funds; (iii) project-specific loans, grants or guarantees under
framework agreements to be negotiated with financing partners; (iv) knowledge provision and
exchange; and (v) other forms of assistance, such as risk-sharing mechanisms. The Clean
Energy Financing Partnership Facility consists of the multidonor Clean Energy Fund and the
Asian Clean Energy Fund, funded by the Government of Japan.
3.
On 19 June 2009, ADB signed a channel financing agreement with the Global Carbon
Capture and Storage Institute of the Commonwealth of Australia for the establishment of a
Carbon Capture and Storage Fund under the CEFPF with an initial contribution of A$21.5
million.
4.
The new Carbon Capture and Storage Fund aims to accelerate the physical deployment
of carbon capture and storage demonstration projects by promoting projects, engaging in
capacity development, supporting geological investigations and environmental studies related to
potential carbon dioxide storage sites, and undertaking community awareness and support
programs. All DMCs will be eligible for support from the fund for activities prioritized under
ADB’s Energy Efficiency Initiative. Activities in China, India, Viet Nam and Indonesia will be
given priority. The agreement governing the fund