In September 2014, the African Development Bank (AfDB), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), Climate Investment Funds (CIF), the Global Environment Facility (GEF), the International Fund for Agricultural Development (IFAD) and the World Bank reported on various climate finance developments, including in the areas of green bonds, transport, forest emissions and climate resilience.
1 October 2014: In September 2014, the African Development Bank (AfDB), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), Climate Investment Funds (CIF), the Global Environment Facility (GEF), the International Fund for Agricultural Development (IFAD) and the World Bank reported on various climate finance developments, including in the areas of green bonds, transport, forest emissions and climate resilience.
The Asian Development Bank (ADB), EIB, the CIF, the GEF and the World Bank issued publications on, inter alia, climate finance for women, disaster risk management and agriculture in Africa. Key climate change events in September also resulted in action and provided learning opportunities.
On projects, EIB announced it has started building a green bond curve in the Euro market through the issue of a €500m Climate Awareness Bond (CAB). Funds raised via CAB issues are earmarked for EIB lending projects in the areas of renewable energy and energy efficiency. EIB also reported on an €119 million loan for a Spanish aviation industry company for the development and implementation of technologies enhancing the efficiency of commercial aircraft, with a direct impact on fuel consumption and carbon dioxide (CO2) emissions. [EIB CAB Press Release] [EIB Aviation Press Release]
IDB reported on the signature of a letter of intent by the Governments of Peru, Norway and Germany for the implementation of the ‘Peru Results Based Initiative on REDD+,’ which aims to reduce emissions from deforestation and forest degradation in Peru. The letter of intent was accompanied by a parallel signature of a memorandum of understanding (MoU) between the Government of Peru and IDB to accompany this initiative. The agreements will contribute to Peru’s target of zero net emissions from land use change and forestry by 2021. [IDB Press Release]
The World Bank reported on a US$6 million grant from the GEF for a ‘Management and Protection of Key Biodiversity Areas’ project in Belize that will: enhance biodiversity protection; expand areas under sustainable forest management (SFM); provide alternative livelihoods; and strengthen local capacity in management and compliance monitoring of forest resources and the environment. [World Bank Press Release]
On climate resilience-related projects, the CIF reported on the approval of a US$7.4 million grant for a programme promoting climate-resilient agriculture in two Cambodian provinces. The World Bank approved a US$5.1 million grant from the GEF to China in support of the ‘Climate Smart Staple Crop Production Project,’ which aims to enhance climate-smart and sustainable staple crop production through the promotion of low-carbon production techniques and practices in two Chinese counties. IFAD announced a US$7 million project to improve rural livelihoods and strengthen the adaptation capacity of 11,600 people vulnerable to climate change living in outer islands of Kiribati. The project was signed by IFAD on 3 September 2014, during the International Conference on small island developing States (SIDS) in Apia, Samoa. [CIF Project Document] [World Bank Press Release] [IFAD Press Release] [IISD RS Coverage of the SIDS Conference]
As a contribution to the UN Secretary General’s Climate Summit, held on 23 September 2014, in New York, US, 21 public and private sector entities launched the ‘City Climate Finance Leadership Alliance, which aims to stimulate investments in low-carbon and climate-resistant infrastructure in cities in low- and middle-income countries, and generate trillions of US dollars each year for climate-smart infrastructure. The Alliance partners include the World Bank, UN-Habitat, major banks and development agencies. In another contribution to the UN Climate Summit, AfDB emphasized its commitment to sustainable transport and services in Africa, noting a commitment from 2012 by eight multilateral development banks (MDBs) to leverage US$175 billion in financing for sustainable transport over 10 years. AfDB also reported on the ‘Investor Statement on Green Bonds and Climate Bonds,’ issued during the Climate Summit. The signatories to the Statement, representing over US$3 trillion dollars of managed assets, committed to further developing the green bonds market. [World Bank Story] [2014 UN Climate Summit Press Release] [AfDB Transport Press Release] [MDBs Commitment to Sustainable Transport] [AfDB Green Bonds Press Release] [IISD RS Coverage of the UN Climate Summit]
On other events, ADB organized a training course on climate change impacts and mitigation efforts in the transport sector, aimed at senior policymakers and consisting of learning sessions and a field visit. The course took place from 23-25 September 2014, in Hiroshima, Japan. A CIF Voices blog post titled ‘Climate Finance: Lessons from the Front Lines,’ discusses key themes that emerged from the ‘Lima Climate Finance Week,’ held from 26-29 August 2014, in Lima, Peru. These include: increasing ownership by finance ministers of the climate agenda; the need to address both supply of, and demand for, climate finance; and the critical role of public finance in catalyzing private investment. [ADB Event Webpage] [CIF Voices Blog Post] [IISD RS Story on Lima Climate Finance Week]
In September, ADB issued publications on gender, climate resilience and disaster risk management and prevention. A policy brief titled ‘Making Climate Finance Work for Women’ examines linkages between gender and climate change, and selected climate finance instruments. The brief calls for mitigation measures that take advantage of women’s potential to contribute to emissions reductions and sustainable development. ADB also released a report on its ‘Pilot Program for Climate Resilience’ that provides an overview of the first phase of the programme in Tajikistan, which is one of the nine countries taking part in the initiative on climate-resilient development. [ADB Publication on Gender] [ADB Publication on Climate Resilience]
A book by ABD, titled ‘Disaster Risk Management in Asia and the Pacific,’ studies key regional trends in disaster incidence, sources of vulnerability and social and economic challenges. Furthermore, the Bank’s Independent Evaluation branch published a review of a study on the contributors to the frequency of intense climate disasters in Asia-Pacific Countries that calls for improved disaster prevention and response measures in the region. [ADB Book on Disaster Risk Management] [ADB Article on Climate Disasters]
EIB released an overview report summarizing the Bank’s ‘Sustainability Report 2013.’ According to the report, the Bank’s lending for climate action in 2013 totalled €19bn, which included 11 solar projects, 17 wind farms, and 37 public transport projects. [EIB Publication]
CIF drew attention to a chapter on climate-smart agriculture (CSA) contained in the ‘Africa Agriculture Status Report 2014′, produced by the Alliance for a Green Revolution in Africa (AGRA), which refers to CIF funding as a viable modality for providing large-scale resources for CSA using a programmatic and country-driven approach. The report mentions a forest project in Burkina Faso and a climate resilience project in Niger as examples of positive early results. [CIF Publication Page]
The GEF launched leaflet titled ‘Climate Finance for Global Impact,’ which explains the Facility’s work in the area of climate finance, and mentions that, over the next four years, the 6th replenishment of the GEF Trust Fund (GEF-6) and the GEF climate adaptation funds will make available US$3 billion. [GEF Brochure]
In a feature story, the World Bank draws attention to the need to enhance climate finance flows. In 2012, US$359 billion were leveraged, of which two-thirds came from private sources. While this is only half of the volume considered necessary, the World Bank writes that “innovations in business and finance and bold policies are laying the foundations to scale it up.” The World Bank also published a brief exploring green bonds, used to raise funds for climate change mitigation, adaptation and other environment-friendly projects. According to the Bank, since 2008, it has issued more than US$6.7 billion in green bonds. [World Bank Finance Flows Story] [World Bank Finance Flows Infographic] [World Bank Green Bonds Story]
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