The Asian Development Bank (ADB) says it has partnered with Tokyo-based Japanese financial servies group ORIX Corporation and global asset management firm Robeco Institutional Asset Management B.V. to establish the Asia Climate Partners, a joint venture that will make private equity investments across a variety of environmentally supportive, low-carbon deals throughout Asia, according to an announcement made by ADB.
The Asia Climate Partners (ACP) vehicle will be capitalized initially by US$400 million from its founding partners, and will be based in Hong Kong.
It will be dedicated to investing in renewable energy, clean technology, natural resource efficiency, water, agriculture, forestry and other climate-friendly companies and deals that will generate risk-adjusted returns and have a positive environmental and social impact.
Asia’s economies are among the fastest growing in the world, but are faced by some of its most significant environmental challenges including poor air and water quality, inadequate and unreliable supplies of energy, and inefficiencies in the utilization of existing supplies of energy and other natural resources.
Given increasing public and private sector focus on these challenges, and the historically low levels of capital deployed in these areas, investment in renewable energy and resource efficiency has the potential to grow at two to three times of economic growth in Asia over the next several decades, says the announcement.
"We believe that ACP provides an innovative platform to deploy capital into climate-related transactions across Asia that are designed to generate attractive returns," says Todd Freeland, director general of ADB’s private sector operations department.