DLA Piper Advises Foreign, Commonwealth & Development Office on Multi-Donor Climate Finance Initiative.

Global law firm DLA Piper has announced its advisory role to the Foreign, Commonwealth & Development Office (FCDO) regarding its involvement in The Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP).

The arrangements for IF-CAP were unveiled during a launch event at COP29 in Baku, where the UK Government was recognized as the third largest donor, pledging a risk participation of USD280 million without any upfront financial commitment from the UK.

This participation is expected to generate a multiplier effect of 4.5, enabling a total of USD1.2 billion in climate finance to be allocated by the Asian Development Bank (ADB) for various adaptation and mitigation initiatives. IF-CAP is a multi-donor initiative created by the ADB in collaboration with donor nations, aimed at enhancing the ADB's capacity to finance urgent climate action throughout Asia and the Pacific.

This innovative risk transfer program directly addresses the recommendations from the Group of Twenty (G20) for multilateral development banks (MDBs) to expand their lending through innovative strategies such as risk transfers. The goal of IF-CAP is to establish a fund of USD2.5 billion, which will facilitate over USD11 billion in climate finance for the region. In addition, DLA Piper provides guidance to organizations globally in the development and implementation of projects that promote the energy transition.

The firm’s distinguished pro bono practice has also assisted nation-states in ensuring their concerns and opportunities are represented during climate negotiations.

Mark Dwyer, Global Co-Chair for Financial Services, said: “We are delighted to have supported the FCDO in working together with ADB and the other donor governments to bring IF-CAP to a successful conclusion and look forward to seeing the roll-out of successful adaptation and mitigation climate lending enabled by IF-CAP over the coming years”

Matthias Schemuth, partner in DLA Piper’s Finance practice, said: “The UK government has a strong background in supporting climate-related projects, and this latest commitment will enable it to further increase the support it offers to nations across Asia and the Pacific region. With additional support from the ADB, funding will be directed towards creating the greatest climate impact for communities across the region.”

Jean- Pierre Douglas Henry, Managing Director for Asia-Pacific and Sustainability, said: “More immediate action is needed to channel finance to nations on the front line of combatting climate change. DLA Piper has a strong background in delivering this objective and has advised nation states on their sustainability and climate challenges, including Pacific Island nations. Through programmes such as IF-CAP, the public and private sector can effectively come together to fund innovative climate solutions”.

DLA Piper is a global law firm providing a wide range of legal services across sectors such as corporate, finance, litigation, and real estate. With over 90 offices in more than 40 countries, the firm is known for its expertise in handling complex, cross-border matters. DLA Piper is committed to innovation, diversity, and exceptional client service, ranking among the top law firms worldwide.

High-Profile Breakaway: Former DLA Piper Affiliate Lawyers Launch COSRO Advogados in Brazil