1 December 2014
November 2014 Climate Finance Update
Photo by IISD/ENB
story highlights

During November 2014, the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), the UN Industrial Development Organization (UNIDO) and the World Bank reported on project approvals and progress in ongoing projects in Africa and Asia.

AfDB, the Asian Development Bank (ADB), the European Investment Bank (EIB), the Inter-American Development Bank (IDB) and the World Bank launched publications on, inter alia, climate adaptation technologies, urban climate resilience and climate finance.

adb-eib-idb-wb-ifad-unidoNovember 2014: During November 2014, the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), the UN Industrial Development Organization (UNIDO) and the World Bank reported on project approvals and progress in ongoing projects in Africa and Asia. AfDB, the Asian Development Bank (ADB), the European Investment Bank (EIB), the Inter-American Development Bank (IDB) and the World Bank launched publications on, inter alia, climate adaptation technologies, urban climate resilience and climate finance.

On project news, AfDB announced the approval of the Bank’s second ‘Drought Resilience and Sustainable Livelihoods Program.’ The US$133 million programme will support Eritrea, Ethiopia, Somalia and Sudan to raise the incomes of agro-pastoralists through improved livestock production and services and the development of irrigation schemes. [AfDB Press Release]

IFAD and Morocco signed a US$25.5 million loan and grant agreement to finance the first phase of a project that aims to improve the wellbeing of the rural poor in Morocco’s mountain zones through building resilience to climate change and developing sustainable natural resource use-based value chains. [IFAD Press Release]

UNIDO received further support from Japan for its ‘Low Carbon Low Emission Clean Energy Technology Transfer’ programme, which promotes rapid deployment of new low-carbon technologies globally. The US$2.7 million contribution will support activities in Ethiopia and Kenya. [UNIDO press release]

The World Bank signed a US$23 million grant agreement with Thailand to help local air conditioning and foam manufacturers reduce hydrochlorofluorocarbon (HCFC) gases used in production processes. Funding recipients include 12 air conditioner manufacturers and more than 120 foam enterprises. The World Bank also highlighted the signing by Liberia and Norway of a US$150 million grant letter of intent for a forests REDD+, which will be facilitated by the World Bank. As part of the agreement, the two countries will work in Liberia to: improve the framework for forest governance; strengthen law enforcement; and reduce greenhouse gas (GHG) emissions from deforestation and forest degradation. [World Bank Press Release on Thailand] [World Bank Blog Post on Liberia]

The World Bank also reported on work and funding under its Partnership for Market Readiness (PMR), including: a meeting of more than 30 countries in Santiago, Chile, to discuss carbon pricing policies; and the awarding of US$9 million in grants to Brazil, Ukraine and Viet Nam to implement national plans to reduce emissions and move towards low-carbon growth. The funds will be used in analytical work on a carbon tax, building a monitoring, reporting and verification (MRV) system for an emissions trading scheme (ETS) and a national programme to reduce emissions and earn carbon credits, respectively. [World Bank Press Release on the PMR]

On publications, AfDB published the August-October 2014 issue of its ‘Climate Finance Newsletter,’ which collects news from the Bank relating to green growth, renewable energy, resilience and partnerships in Africa. On green growth, the AfDB: reports on the adoption of a framework to guide its staff in facilitating the region’s transition to greener growth; and highlights its commitment to supporting the development of the green bonds market. On partnerships, the newsletter notes AfDB’s participation in a joint statement by six multilateral development banks (MDBs) in support of climate finance and the Bank’s commitment to the Power Africa initiative. [AfDB Climate Finance Newsletter]

ADB issued publications on climate adaptation technologies, urban climate resilience and climate risk management. A study on ‘Technologies to Support Climate Change Adaptation in Developing Asia’ showcases adaptation-relevant technologies across six economic sectors. It stresses the importance of considering the local context in evaluating adaptation options and finds that several technologies meet more than one need or vulnerability. The paper ‘Urban Climate Change Resilience: A Synopsis,’ aimed at ADB project officers and partner cities, explains the core principles and qualities of urban climate change resilience. ADB also published a brochure on ‘Climate Risk Management in ADB Projects,’ which introduces the Bank’s risk management approach in this area. [Publication: Technologies to Support Climate Change Adaptation in Developing Asia] [Publication: Urban Climate Change Resilience: A Synopsis] [Publication: Climate Risk Management in ADB Projects]

EIB released the November 2014 edition of its ‘INFO’ newsletter, under the theme ‘Joining Forces to Mobilise Climate Finance,’ which showcases its activities on green bonds and climate finance. Articles address, inter alia: EIB’s participation in the forthcoming UN Lima Climate Change Conference; the Banks’ coordinating role in the MDB’s methodological work up to the Conference; and EIB “climate action highlights” in numbers. [EIB INFO November 2014 Edition]

A report, titled ‘Climate Change at the IDB: Building Resilience and Reducing Emissions,’ presents the results of the first evaluation of IDB’s support for climate change mitigation and adaptation, focusing on IDB-financed operations in agriculture and natural resources, energy, disaster risk management (DRM) and transport. The report concludes that “IDB has made some progress toward achieving the overall objectives of its [climate change] strategy, though there is still a long way to go,” and presents recommendations to IDB Management in this regard. [Publication: Climate Change at the IDB: Building Resilience and Reducing Emissions]

Short analyses published by the World Bank in November included a brief explaining the Bank’s work in the area of climate-smart agriculture (CSA) in China, Ethiopia, Niger, Rwanda, Viet Nam and Zambia. In Viet Nam, for example, alternate wetting and drying techniques have resulted in increased yields and significant reductions in the quantities of seeds, water and nitrogen fertilizer required. [World Bank Brief on CSA]

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