July 2015 Climate Finance Update
Photo by IISD/ENB
story highlights

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.

climate_finance_au20151 August 2015: 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). [IDB Press Release]

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. [World Bank Press Release] [PAF Auction Results] [World Bank Press Release]

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). [ADB Press Release]

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. [World Bank Press Release]

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. [Adaptation Fund Press Release]

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. [NEFCO Press Release]

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. [IFAD Press Release]

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. [GCF Pledge Tracker]

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.’ [ADB Press Release] [ADB Video on ADB Philippines Project] [ADB Video on Green Bonds]

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. [EIB Carbon Footprint Report] [EIB Sustainability Report]

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. [IDB Study on Colombia] [IDB Study on Regulatory Models] [IDB Study on Permission Allocations] [IDB Study on Market Sizing]

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. [World Bank Study on Capital Investment Planning] [World Bank Study on Western Balkans] [IISD RS Stories on Turn Down the Heat]

The Adaptation Fund released fact sheets presenting adaptation stories from the Cook Islands, Georgia, Honduras and Senegal. [Adaptation Fund Publication on Cook Islands] [Adaptation Fund Publication on Georgia] [Adaptation Fund Publication on Honduras] [Adaptation Fund Publication on 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. [CIF Voices Post on FIP Meeting] [CIF Voices Post on Mexico] [CIF Voices Post on PPCR]

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. [IFC Press Release on Mercer Study] [IFC Mercer Study] [IFC Story on 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. [UDP Study on Transformational Change]

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. [CDB Press Release] [CIF Press Release on PPCR Meeting] [CIF Press Release on Earth Observation Event]

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. [IISD Story on GCF Board Meeting] [GCF Story on Regional Workshop]

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. [World Bank 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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