The SDG Knowledge Hub of the International Institute for Sustainable Development (IISD) provides the November update on global developments in climate adaptation finance.
Climate Adaptation Finance Update: COP 23 Spurs Action on Resilience
In November, multilateral development banks (MDBs) approved a number of large development projects with climate resilience benefits. Support was also confirmed to support disaster risk resilience and recovery in small island states. Also in November, the UN Climate Change Conference in Bonn, Germany, also known as UNFCCC COP 23, served as a launchpad for a number of new funding and project launch announcements.
Funding for Water, Agricultural Resilience to Deliver Socioeconomic Benefits
In Fiji, which holds the Presidency of the UNFCCC, the European Investment Bank (EIB) announced its largest project so far in a small island state, in the area of climate-resilient water infrastructure. Financing from the EIB, in the form of a US$75 million 20-year loan, will support a US$405 million multi-donor investment programme of the Fijian government geared at strengthening the resilience of water distribution and wastewater treatment systems in the wake of Cyclone Winston. The programme is expected to benefit 275,000 people.
MDBs also approved loans to northern parts of India that will aim to boost agricultural production and food security while increasing climate resilience. In the state of Assam, a US$200 million loan from World Bank will “facilitate agri-business investments, increase agriculture productivity and market access, and enable small farm holders produce crops that are resilient to recurrent floods or droughts in the state.” In the state of Punjab, a US$275 million loan from the Asian Development Bank (ADB) will enable the construction of a surface irrigation system and will also include capacity building on climate-smart agricultural practices and profitable farm management for 6,000 households. Overall, the ADB project is expected to deliver benefits to 384,000 people.]
Resilient Road, Urban Infrastructure Receive a Boost in India, Viet Nam
In India, the ADB also approved a US$500 million multi-tranche financing facility to improve rural roads in five states. While mainly focused on rural connectivity with markets and services, including health and education, the project will also incorporate a climate resilience dimension as the road designs will feature greater elevation of embankments and better drainage in flood-prone areas, given expected negative impacts of climate change, which include increased rainfall and storm surges.
In Viet Nam, the ADB will support making three secondary cities more livable, environmentally friendly and climate-resilient through a US$170 million loan. The project is expected to generate benefits for 116,000 households through measures that will include the construction or rehabilitation of wastewater treatment systems, green spaces and road networks, among others.
Small Islands Advance Coastal Resilience, Disaster Risk Reduction and Reconstruction
In the Caribbean, the Caribbean Development Bank (CDB) and EIB announced a US$24 million loan to the region’s countries as part of a new emergency post-disaster reconstruction initiative, aimed at “building back better” and mainstreaming climate risk and vulnerability assessments into reconstruction efforts in the aftermath of 2017 hurricane season. The agreement between the two institutions was signed at COP 23.
Also in the Caribbean, the Inter-American Development Bank (IDB) approved a US$35 million loan to strengthen the country’s coastal resilience through natural infrastructure and integrated management. Measures will include science-based shoreline stabilization and coastal flooding control.
In Samoa, the World Bank approved a US$5 million grant towards policy reforms aimed at strengthening the country’s resilience to climate change, natural disasters, non-communicable diseases and economic shocks.
Multilaterally-supported Projects Advance at COP 23
In news on multilaterally-funded projects that have already secured funding, coinciding with COP 23, Bhutan announced the launch of a US$13.9 million forest and agricultural resilience project, supported by the Global Environment Facility (GEF). The six-year project is designed to support three SDGs while enhancing community livelihoods, namely life on land (SDG 15), climate action (SDG 13), and no poverty (SDG 1).
In the run-up to COP 23, the Government of Samoa formally launched an adaptation project supported by the UN Development Programme (UNDP) and the Green Climate Fund (GCF), which will target flood-proofing of infrastructure and establish related health tracking and early warning systems.
Also, the GCF reported on meetings at COP 23 between the GCF and the European Bank for Reconstruction Development (EBRD) on progressing cooperation on a groundwater conservation project in Morocco.
November 2017 Project Lessons on Resilience
In project lessons and results:
- The CDB reported on how upgrades at a community college in Grenada have supported the country’s efforts to increase agricultural climate resilience through training in climate-smart agriculture.
- The World Bank reported that a delegation of 17 Zambians traveled to Cambodia to acquire practical knowledge about climate resilience for knowledge transfer purposes.
- The World Bank further released a report titled, ‘Climate and Disaster-Resilient Transport in Small Island Developing States: A Call for Action,’ which finds that disaster-related damage to transport infrastructure is a major contributor to fiscal strains in these countries. The report recommends investments in transport asset management that factor in climate change and disaster risks as a mitigation strategy.
- The World Bank further highlighted a ‘Disaster Risk Finance Country Note’ on Georgia, which proposes financial protection strategies for a rapid and effective recovery.