DLA Piper advises on climate financing

Global law firm DLA Piper has played a pivotal role in advising the Foreign, Commonwealth & Development Office (FCDO) on its involvement in the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP). This groundbreaking initiative, led by the Asian Development Bank (ADB), aims to facilitate over $11 billion in climate finance for adaptation and mitigation projects across the Asia-Pacific region.

The UK Government, a leading donor to IF-CAP, has committed $280 million in risk participation at no upfront cost. This commitment is projected to unlock an impressive $1.2 billion in climate finance, leveraging a multiplier effect of 4.5. The program exemplifies a new approach to financing climate action, incorporating risk transfer mechanisms in line with G20 recommendations to enhance multilateral development banks' lending capabilities.

Mark Dwyer, Global Co-Chair for Financial Services at DLA Piper, commented:
"We are delighted to have supported the FCDO in working with ADB and other donor governments to bring IF-CAP to fruition. We look forward to witnessing the impactful climate lending projects this initiative will enable in the years ahead."

The IF-CAP initiative addresses the urgent need for scalable solutions to climate challenges, including the deployment of funds to support vulnerable nations and accelerate sustainable development. DLA Piper’s involvement underscores the firm's broader expertise in energy transition projects and its award-winning pro bono efforts to amplify the voices of nations most affected by climate change.

Matthias Schemuth, Partner in DLA Piper's Finance practice, highlighted the program’s significance:
"The UK government’s background in supporting climate-related projects is exemplary, and this commitment will further enable impactful change in the Asia-Pacific region. With ADB’s expertise, we can expect funding to be directed toward communities where it is needed most."

Jean-Pierre Douglas Henry, Managing Director for Asia-Pacific and Sustainability, reinforced the urgency of IF-CAP’s mission:
"More immediate action is required to finance nations on the frontline of climate change. DLA Piper remains committed to bridging public and private sectors to deliver innovative climate solutions."

This commitment aligns with DLA Piper’s broader recognition as a global leader in environmental, social, and governance (ESG) matters. The firm has been lauded as the No. 1 law firm for ESG impact by Impactvise and awarded the prestigious Terra Carta Seal by the Sustainable Markets Initiative. DLA Piper also leads the field in renewable energy deals, reflecting its commitment to a sustainable future.

Through IF-CAP, DLA Piper, the UK Government, and the ADB are paving the way for innovative climate financing that balances environmental responsibility with financial ingenuity.