Latest update on climate finance

The International Institute for Sustainable Development (IISD) provides the August update on global developments in climate finance.


August 2015 Climate Finance Update

During August 2015, the Asian Development Bank (ADB), the African Development Bank (AfDB), the Climate Investment Funds (CIF), the World Bank, the International Finance Corporation (IFC), the Global Environment Facility (GEF), the International Fund for Agricultural Development (IFAD), the Green Climate Fund (GCF) and the Adaptation Fund reported on climate finance developments, including new funding, project lessons and institutional developments. The World Bank, the UN Environment Programme (UNEP) DTU Partnership (UDP) and the Partnership for Market Readiness (PMR) released publications and event news.

On project funding and news, AfDB’s Africa Climate Change Fund (ACCF) approved its first two grants: US$404,000 for a project to advance Mali’s low-carbon, climate-resilient development agenda; and US$420,000 for a project to strengthen data and information on climate change vulnerabilities and opportunities in 54 African countries

Also, the ClimDev Africa Special Fund (CDSF), the funding arm of a joint programme among the African Union Commission (AUC), the UN Economic Commission for Africa (UNECA) and AfDB, launched its first project. The €1 million project will enhance climate monitoring and data management and dissemination in Ethiopia.

CIF reported on the launching of the second phase of a training programme on community-based climate adaptation planning in Nepal, administered by ADB and financially supported by the CIF Pilot Program for Climate Resilience (PPCR).

The World Bank reported on project results and lessons learned. It notes that: Kenya’s Sustainable Agriculture Land Management Project has built small-holder farmers’ smart agriculture skills, increasing income and food security, and climate resilience, and generating 25,000 carbon credits monetized via the Bank’s BioCarbon Fund; and a land regeneration project in Ethiopia supported by the BioCarbon Fund has restored 2,700 hectares of degraded soil, and generated carbon payments for community investments in agricultural infrastructure.

In Egypt, the World Bank-supported Vehicle Scrapping and Recycling Program of Activities (PoA) has resulted in the replacement of over 40,000 aging taxis and avoidance of more than 130,000 tonnes of carbon dioxide (CO2) in 2013-2014. In Viet Nam, the city of Du Nang has participated in the pilot phase of the Sustainable Urban Energy and Emissions Planning (SUEEP) process, which comprised a series of targeted investments in energy efficiency and green infrastructure, and provided lessons for a guidebook for cities on developing energy and emissions plans.

As an example of its support to innovation and enabling policy frameworks for technology transfer, the GEF reported on a project in Kyrgyzstan, supported by GEF and the European Bank for Reconstruction and Development (EBRD) Finance and Technology Transfer Centre for Climate Change (FINTECC) programme. The US$7.6 million project outfitted a beverage factory with energy-efficient and CO2-capturing technology, and advanced energy management systems.

IFC announced that, in the fiscal year ending in June 2015, it arranged close to US$1 billion in climate-smart investments to 21 projects in Europe and Central Asia. Of this, US$543 million came from IFC’s own commitments. The IFC’s Climate-Smart Trade Program enabled US$440 million in climate-smart trade, including through support to: wind power equipment imports in Pakistan; design, manufacturing, and commissioning of turbines for a hydropower project in Georgia; and import of solar panels in Honduras.

IFC further reported on the issuance of a five-year green Masala (global Indian rupee) bond, which raised INR3.15 billion (US$48 million, August 2015) for private sector investments to address climate change in India.

IFAD reported on the Programme for Scaling up Peoples’ Biodiversity Management for Food Security, supported by a grant from IFAD, which has built capacity to manage biodiversity while adapting to climate change in Peru, Viet Nam and Zimbabwe. The programme is being expanded to India, the Lao People’s Democratic Republic, Mali, Myanmar and Senegal with a €15 million investment from the Swedish International Development Cooperation Agency (SIDA).

The Adaptation Fund Board (AFB) approved the second tranche of funds, totaling US$2.3 million, for a project supporting resilient food security in Egypt.

The Adaptation Fund further announced it had received a record 32 project proposal for its triennial review cycle. The AFB will decide on project approvals at its next meeting, convening in Bonn, Germany, on 8-9 October 2015. The AFB also approved the Environment Division of the Ministry of Health and the Environment of Antigua and Barbuda, and the UN Human Settlements Programme (UN-Habitat) as accredited implementing entities.

The GCF issued an invitation for application for accreditation as an observer organization to the GCF, open to civil society organizations, private sector organizations and international entities, with an application deadline of 11 September 2015. The GCF further reported that, as of 12 August, 36 governments, including eight representing developing countries, had made a pledge to the GCF.

ADB announced an online photo contest “to find the best images representing the impacts of climate change on the people and environments in Asia and the Pacific.”

In August, the World Bank, UDP and PMR published reports and studies on green bonds, adaptation in the energy sector and crediting for verified emissions reductions. The World Bank reported on its ‘Green Bond Impact Report’ released in July 2015, which provides an overview of the environmental and social impacts expected from projects supported by the Bank’s green bonds targeting low-carbon and climate-resilient growth. By July 2015, the World Bank had issued 100 green bonds, raising the equivalent of US$8.4 billion.

UDP published a report based on a technical assistance project in Colombia in the area of energy sector climate risk management, which identifies key elements for risk planning in the country’s oil and gas sector, and provides recommendations for public policy initiatives. UDP engaged in a similar project in the hydropower sector in Nicaragua.

A study titled ‘Crediting-Related Activities under the PMR’ reviews and compares PMR crediting-related activities and assesses their ability to stimulate scaled-up mitigation through an enabling domestic environment.

UDP reported on a three-week course on green energy and low-carbon development, attended by 16 managers and decision makers from developing countries. The course aimed to build knowledge and problem-solving skills in the areas of energy efficiency, renewable energy and green growth.

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