MANILA, The Asian Development Bank (ADB) and the Global Environment Facility (GEF) have jointly announced the creation of the Natural Capital Fund (NCF), a concessional fund aimed at supporting projects that bolster food security and simultaneously protect and restore natural capital in the ADB’s developing member countries (DMCs). The GEF is backing the NCF with a $15 million investment.

According to Asian Development Bank (ADB), the announcement was made during the Asia-Pacific Natural Capital Forum, which took place from 7 to 9 November 2023. The forum was co-hosted by ADB and Stanford University’s Natural Capital Project. ADB and Stanford University have been actively collaborating to integrate natural capital accounting and gross ecosystem product (GEP) into the economic frameworks of DMCs.

ADB Vice-President for Sectors and Themes, Fatima Yasmin, emphasized the timeliness and significance of the Natural Capital Forum, noting it as a valuable platform to learn from ongoing natural capital assessments in various DMCs.

Carlos Manuel Rodriguez, GEF Chief Executive Officer, highlighted the innovative potential of natural capital approaches in addressing the shortcomings of current economic systems. He recognized GEF’s role as a key partner in applying and expanding these natural capital innovations across Asia and the Pacific, as well as globally.

The forum also covered discussions on the nature financing gap and highlighted ADB’s broader initiative, the Nature Solutions Finance Hub. This initiative is focused on developing financing models for nature-based solutions, emphasizing the creation of scalable and bankable demonstration projects that incorporate innovative finance approaches.

Established in 1966, ADB remains dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. The bank is supported by 68 members, with 49 hailing from the region itself.