The International Institute for Sustainable Development (IISD) provides the July update on global developments in climate finance.
July 2015 Climate Finance Update
During the month of July, the Asian Development Bank (ADB), the Inter-American Development Bank (IDB), the World Bank, the Adaptation Fund, the International Fund for Agricultural Development (IFAD) and the Nordic Environment Finance Corporation (NEFCO) reported on climate finance developments. ADB, the European Investment Bank (EIB), IDB, the World Bank, the Adaptation Fund, the Climate Investment Funds (CIF), the Green Climate Fund (GCF), the International Finance Corporation (IFC) and the UN Environment Programme DTU Partnership (UDP) released climate finance-related publications, articles and videos. The Caribbean Development Bank (CDB), CIF, GCF and the World Bank published news on climate-related events.
On climate finance news and developments, IDB approved the Climate-Smart Agriculture Fund for Latin America and the Caribbean (CSAF) to unlock private-sector investment in projects that increase farmers’ incomes and address climate change through sustainable land use and enhanced climate resilience. The US$5 million concessional financing tool was developed in partnership with the Global Environment Facility (GEF).
The first auction of the World Bank’s Pilot Auction Facility for Methane and Climate Change Mitigation (PAF), held on 15 July, resulted in purchases of guarantees for emissions reductions totalling 8.7 million tonnes of carbon dioxide (CO2) at a clearing price of US$2.4 per credit. Of 28 private-sector bidders from both developed and developing countries, 12 companies won in the auction. The World Bank will organize additional pilot auctions in the short term and plans to use larger auctions targeting other greenhouse gases (GHGs) in the near future.
In the area of climate risk and resilience, ADB reported on the results of a US$7.6 million training grant aimed at raising climate change awareness and incorporating climate risks into policies and planning in Nepal. The grant is part of the US$1.2 billion CIF Pilot Program for Climate Resilience (PPCR).
The World Bank approved a US$6.8 million PPCR grant for a project in Jamaica titled ‘Improving Climate Data and Information Management,’ which aims to: increase the satisfaction of climate data and information service users; promote the use of climate data and information in the health sector; and increase the number of people assisted by the project.
The Adaptation Fund approved the second tranche of funding, totalling US$3.6 million for a project to reduce vulnerability to climate change in Northwestern Rwanda through community-based adaptation.
NEFCO’s Norwegian Carbon Procurement Facility signed five projects that will result in 7.6 million Certified Emission Reduction (CER) credits. The projects will address landfill gas and industrial projects in Brazil and South Africa.
IFAD reported on the results of a grant-funded programme, running from 2009-2013, that contributed to the development of 88 climate-resilient rice varieties in South and Southeast Asia.
In July, GCF, ADB, EIB, IDB, the World Bank, the Adaptation Fund, CIF, ICF and UDP launched reports and studies, and published stories and informative videos on, inter alia, insurance in risk management, carbon markets, capital investment plans, and climate-smart trade.
According to the GCF’s pledge tracker, of a total amount of US$10.2 billion in pledges announced to the GCF, US$5.8 billion had been signed as of 23 July 2015.
ADB released an article and a video explaining how its climate financing is supporting climate action in developing Asia. The Bank also launched a short video titled ‘Green Bonds in 2 Minutes.’
EIB published its Carbon Footprint Report 2014 and Sustainability Report 2014. EIB has set a target to reduce its emissions by 20-30% by 2030 compared to 2007 levels.
IBD released a study on market constraints to the development of an agricultural insurance market in Colombia, as well as three case studies, in Portuguese, on different aspects of a carbon market in Brazil.
The World Bank’s publications include a study on climate change-sensitive capital investment planning, and the Western Balkans edition of its ‘Turn Down the Heat’ report.
The Adaptation Fund released fact sheets presenting adaptation stories from the Cook Islands, Georgia, Honduras and Senegal.
CIF Voices blog posts covered topics, including: CIF’s Forest Investment Program (FIP) meeting in the Democratic Republic of the Congo (DRC) in June 2015; progress on a FIP project in Mexico; and results of PPCR programmes in Zambia, Dominica and Niger.
IFC reported on a study led by consulting firm Mercer titled ‘Investing in a Time of Climate Change’ that “assesses investment exposure to climate risk, estimates the impact on investment returns through 2050, and offers insights on how investors can improve the resilience of their portfolios.” IFC also launched a story of its Climate-Smart Trade Program.
UDP’s report, titled ‘Transformational Change for Low Carbon and Sustainable Development,’ documents how transformational change has taken place, or is being developed, in Brazil, Colombia, Denmark, Germany and South Africa.
On climate finance-related events, CDB reported on a meeting of regional climate and environmental agencies with UN Secretary-General Ban Ki-moon, which took place in Barbados during the 36th Summit of the Caribbean Community (CARICOM), held from 1-3 July 2015. CIF reported on an orientation meeting for PPCR countries and an Earth observation advocacy event for climate resilience. Both events were part of the 8th PPCR Pilot Countries Meeting, which took place in Frascati, Italy, from 19-23 July 2015.
The GCF held its 10th Board meeting in Songdo, Republic of Korea, from 6-9 July 2015, and a regional workshop for Pacific Island countries in Nadi, Fiji, from 27-29 July.
The World Bank reported on an international technical workshop on sustainable landscape management (SLM) programmes to reduce GHG emissions held in Maputo, Mozambique, from 20-22 July.