The Asian Development Bank could invest $700m in developing countries to help meet the cost of combating climate change.
The Clean Technology Fund will support energy efficiency measures for the industry, commercial buildings and municipalities in addition to enabling wind, solar, hydro and geothermal power technologies.
The Strategic Climate Fund will support programmes on climate resilience, forest investment and scaling up renewable energy use for low-income countries to demonstrate effective climate mitigation and adaptation interventions.
The two funds are a part of climate investment funds (CIF) from donor countries including Australia, France, Germany, Japan, the Netherlands, Norway, Spain, Sweden, Switzerland, the UK and the US.
The funds are designed to be interim financing tools to be discontinued after deliberations on a new global programme on climate change are completed.