November 2013: The African Development Bank (AfDB) has announced its efforts to develop a climate finance tracking methodology, through collaboration to develop a joint multilateral development bank methodology for tracking adaptation and mitigation finance.

The AfDB collaborated in a joint MDB working group, with the Inter-American Development Bank (IDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), International Finance Corporation (IFC) and World Bank, in developing a methodology to track climate finance. The AfDB led efforts on tracking adaptation finance in development projects, while the IDB led the development of a methodology for tracking mitigation finance. The joint MDB methodology is expected to support efforts to track and report climate finance flows, mainstream climate change in project design, assess climate investments and mobilize climate finance.

The AFDB website seeks to increase comparability and transparency in climate finance operations, and includes the climate finance tracking methodology and guidance manuals for the agriculture, energy, transport and water sectors and a finance report.

To be reported as adaptation finance, the methodology stipulates a project activity must: include a statement of intent to address or improve climate resilience; set out a climate vulnerability context that considers impacts and variability; and link activities to the climate vulnerability context and reflect direct contributions to climate resilience. The methodology, inter alia, elaborates on application of these three criteria, proposes a finance reporting process and provides examples of sector-specific adaptation and mitigation activities.

The sector guidance manuals include chapters that: describe the rationale for tracking climate finance; outline steps in tracking climate finance; define adaptation and mitigation in the sector; address potential problematic issues; and provide case studies.

[AfDB Website] [Publication: Methodology for Tracking Climate Adaptation and Mitigation Finance] [Publication: Climate Finance Tracking Guidance Manual: Agricultural Sector] [Publication: Climate Finance Tracking Guidance Manual: Energy Sector] [Publication: Climate Finance Tracking Guidance Manual: Transport Sector] [Publication: Climate Finance Tracking Guidance Manual: Water Sector] [IISD RS Story on MDB Working Group] [IISD RS Sources]