December 2015 Climate Finance Update
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During the month of December, the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the World Bank, the Green Climate Fund (GCF), the Adaptation Fund and the Secretariat of the UN Framework Convention on Climate Change (UNFCCC), among others, reported on new financing pledges and other climate finance news.

Multilateral Development Banks (MDBs), climate funds and UN initiatives launched studies, reports and briefs on, inter alia, climate risks and resilience, and adaptation finance.

A large number of climate finance-related side events were held during the UN Paris Climate Change Conference in December 2015.

December 2015 Climate Finance Update21 December 2015: During the month of December, the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the World Bank, the Green Climate Fund (GCF), the Adaptation Fund and the Secretariat of the UN Framework Convention on Climate Change (UNFCCC), among others, reported on new financing pledges and other climate finance news. Multilateral Development Banks (MDBs), climate funds and UN initiatives launched studies, reports and briefs on, inter alia, climate risks and resilience, and adaptation finance. A large number of climate finance-related side events were held during the UN Paris Climate Change Conference in December 2015.

On new financing pledges made in December, a number of countries, regions and cities made pledges to the GCF: Belgian regions pledged €11 million; the city of Paris pledged €1 million; Norway doubled its pledge, from US$258 million, by 2020; and Viet Nam pledged US$1 million. [UNFCCC Press Release on Belgian Regions] [GCF Press Release on Paris] [GCF Press Release on Norway] [GCF Press Release on Viet Nam]

The GCF signed two readiness grant agreements, each of US$300,000, with Guyana and the Democratic Republic of the Congo. [GCF Press Release on Guyana] [GCF Press Release on DRC]

The Adaptation Fund also received new pledges, totaling close to US$75 million, which came from: the Belgian region of Wallonia (€1 million); Germany (€50 million); Italy (€2 million); and Sweden (U$17 million). The Adaptation Fund’s funding goal for 2015 is US$80 million. [Adaptation Fund Press Release on Total Pledges] [German Government Press Release] [Adaptation Fund Press Release on Sweden] [UNFCCC Press Release on Funding Goal]

Canada, Denmark, Finland, France, Germany, Ireland, Italy, Sweden, Switzerland, the UK and the US announced a US$248 million contribution to the Least Developed Countries Fund (LDCF), hosted by the Global Environment Facility (GEF). In addition, the Canadian province of Quebec pledged CAD6 millions to the LDCF. According to the LDC Group at the UNFCCC negotiations, the funds will cover for the 35 projects currently in the LDCF pipeline, valued at US$255 million. [US Government Press Release] [LDC Group Press Release on Quebec] [LDC Group Press Release on Funds] [AfDB Press Release on Funds]

In other funding announcements, Italy announced a €4.7 million contribution to the Africa Climate Change Fund (ACCF). Germany announced an additional €5 million funding to the Integrating Agriculture in National Adaptation Plans programme of the Food and Agricultural Organization of the UN (FAO) and the UN Development Programme (UNDP), raising its total support to the programme to €15 million. In addition, Germany, Norway and the UK announced a US$100 million contribution to Colombia’s REDD+ efforts to reduce deforestation in the county’s Amazon forests. [AfDB Press Release on Italy] [FAO Press Release on Germany] [GGGI Press Release on Colombia]

The World Bank announced US$3.8 million to combating climate change and preventing natural disasters in Bhutan and South Asia, and a US$300 million loan to support the implementation of Morocco’s green growth strategy. ADB granted a US$100 million loan to improving urban environments and climate resilience in two cities in Viet Nam. EBRD launched a climate resilience credit line, with the first loan under this credit line, at US$3 million, going to Bank Eskhata of Tajikistan. The funds will be on-lent to small and medium-sized enterprises and households to support the adoption of technologies and practices that reduce soil erosion and pressure on water and energy resources. [World Bank Press Release on South Asia] [World Bank Press Release on Morocco] [ADB Press Release on Viet Nam] [EBRD Press Release on Tajikistan]

The UNFCCC Secretariat published a list of climate funding announcements made by developed countries, MDBs and multilateral climate funds in the run-up to, and during the UN Paris Climate Change Conference. The Secretariat also launched an interactive graphic showing the details of each announcement. [UNFCCC Press Release]

On other December climate finance news, MDBs undertook a number of joint actions, including: pledging to “work together to substantially increase climate investments and ensure that development programs going forward consider climate risks and opportunities”; signing on to the voluntary Principles to Mainstream Climate Action within Financial Institutions; and committing to accelerating efforts to mitigate transport-related emissions. [ADB Press Release on MDB Resource Mobilization] [IISD RS Story on MDBs and Principles] [IISD RS Story on MDBs and Transport]

The World Bank launched: the Vietnam Climate Innovation Center aimed at assisting clean-tech businesses, together with the Governments of Viet Nam, Australia and the UK; and the Africa Climate Business Plan initiative, valued at US$16 billion, as well as a related Africa Facility for Climate-Resilient Investment as a joint initiative with the African Union Commission (AFC) and the UN Economic Commission for Africa (UNECA). [World Bank Press Release on Viet Nam] [World Bank Press Release on Africa]

The World Bank also issued a call, jointly with the Heads of State/Government of France, Germany, Mexico, Chile, Ethiopia and Canada, to put a price on carbon. Five Nordic countries launched a statement calling for stronger public-private partnerships in climate financing, and committing to mobilizing financial resources targeted at commercially viable climate investments in sustainable and resilient infrastructure and technology in developing countries. AfDB announced the Affirmative Finance Action for Women initiative aimed at enhancing the climate resilience of women in agriculture and agri-business. [World Bank Press Release on Carbon Price] [Norden Press Release] [AfDB Press Release]

On green bonds, AfDB launched a US$500 million three-year green bond transaction. Also, an informal working group of eleven international financial institutions proposed a harmonized framework for impact reporting on projects to which green bond proceeds have been allocated. [AfDB Press Release on Green Bond] [EBRD Press Release on Reporting Framework]

In December, ADB, the European Investment Bank (EIB), the World Bank, the UN Environment Programme (UNEP) DTU Partnership, the UNEP Finance Initiative (UNEP-FI), the International Fund for Agricultural Development (IFAD), the Partnership for Market Readiness (PMR) and the GCF published studies, reports and briefs.

ADB’s climate change-related studies included those on: the impacts of climate shocks on Pacific Governments’ spending; climate change losses in Southeast Asia; city disaster risk financing in Viet Nam; climate risks, disasters and adaptation in China; and carbon capture and storage (CCS) demonstration and deployment in China. [ADB Study on the Pacific] [ADB Study on Southeast Asia] [ADB Study on Viet Nam] [ADB Study on Risks in China] [ADB Study on CCS in China]

Brochures were published by: the ADB, on the Japan Fund for the Joint Crediting Mechanism; and the EIB, on the bank’s role in financing climate-related investments. [ADB Brochure on Japan Fund] [EIB Brochure on Climate Investments]

The World Bank: provided input to a report on The State of City Climate Finance; launched a brief on its support to enhancing road resilience in Pacific island countries; and released an infograph on the role of forests in slowing climate change and increasing resilience. [IISD RS Story on State of City Climate Finance] [World Bank Publication on Pacific Islands] [World Bank Infograph on Forests]

UNEP-DTU launched the Adaptation Finance Gap Update, which builds on the UNEP 2014 Adaptation Gap Report and includes preliminary findings from the 2016 Adaptation Finance Gap Report. The report finds that, inter alia, adaptation finance flows have increased but current levels fall short of needs. [UNEP-DTU Publication on Adaptation Finance]

A report published in UNEP-FI’s Principles for Sustainable Insurance initiative series finds that multi-stakeholder partnerships can help in building global disaster resilience. [UNEP-FI Publication]

A report by IFAD calls for including the world’s smallholder farmers in climate change policy-making processes, highlighting the fund’s support to policy dialogue between governments and farmers, “including special provisions to ensure that the adaptation priorities of women, young people and indigenous peoples are also heard.” [IFAD Publication]

The PMR, a global partnership of more than 30 countries working on carbon pricing readiness and pilot instruments, published its annual report. [PMR Annual Report 2015]

The GCF published a report on the fund’s 2015 project briefs and a compilation of submissions for the strategic plan for the GCF. [GCF Publication on Project Briefs 2015] [GCF Strategic Plan Submissions]

Among events held in December, a large number of official and unofficial side events focusing on different aspects of climate finance were organized during the UN Paris Climate Change Conference. A list of the official side events, including event synopses, contact information and presentations, is available via the UNFCCC website. IISD RS covered a number of these events, and produced videos. [UNFCCC Webpage on UN Paris Climate Change Conference Side Events] [IISD RS Paris Side Events ENBOTS Coverage] [IISD Paris Rio Conventions Pavilion Coverage] [IISD RS Paris Africa Pavilion Coverage] [IISD RS Paris Side Events Videos]

Also, the Adaptation Fund launched a webinar series to share best practices among its National Implementing Entities on managing climate finance and developing adaptation projects. [Adaptation Fund Press Release]

The SDG Knowledge Hub publishes monthly climate finance updates that focus on news and reports on projects and other finance-related developments by MDBs and key climate finance-related institutions. Past Climate Finance Updates can be found under the tag: Finance Update: Climate Change. Climate finance news and developments relating to renewable energy and energy efficiency are published in monthly Sustainable Energy Finance Updates, which can be found under the tag: Finance Update: Sustainable Energy

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