ADB established the Climate Action Catalyst Fund (CACF), a first-of-its-kind carbon fund under Article 6 of the Paris Agreement, that will help countries to cooperate to meet the objectives of the Paris Agreement on climate change mitigation and the Sustainable Development Goals.  

The CACF is a multi-partner, partner-governed trust fund administered by ADB as the trustee on behalf of the financing partners. The fund aims to mobilize more than $100 million of innovative carbon finance to catalyze investments in transformative mitigation actions in developing member countries (DMCs) by purchasing carbon credits generated by cooperative approaches under Article 6. The CACF commenced operations on 01 January 2024. 

The fund will provide up-front finance to high-impact climate mitigation actions for the future delivery of carbon credits under long-term transactions. It will support activities that provide climate change mitigation and sustainable development benefits in DMCs to help them achieve their nationally determined contributions cost-effectively and raise ambition over time. The CACF will give a strong price signal and position ADB as a bold prime mover in developing international carbon markets under Article 6 of the Paris Agreement. 

ADB signed the first Contribution Agreement with Swedish Energy Agency for their commitment of SKr300 million (approximately $27 million). The Government of Norway issued a letter of intent to contribute up to $50 million to the fund, which was announced at the Conference of the Parties 29.