September 2015 Climate Finance Update
Photo by IISD/ENB | ENB
story highlights

During the month of September, the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the World Bank, the Green Climate Fund (GCF) and the Global Environment Facility (GEF) reported on new funding, and project news and other climate finance-related developments.

Multilateral development banks, climate funds, and others released studies, briefs and reports, including on carbon pricing and climate resilience, and reported on events on climate finance readiness and disaster risk financing.

September 2015 Climate2 October 2015: During the month of September, the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the World Bank, the Green Climate Fund (GCF) and the Global Environment Facility (GEF) reported on new funding, and project news and other climate finance-related developments. Multilateral development banks, climate funds, and others released studies, briefs and reports, including on carbon pricing and climate resilience, and reported on events on climate finance readiness and disaster risk financing.

On September project and funding news, ADB announced it will double its climate financing to US$6 billion per year by 2020. The share of climate financing in ADB’s overall financing will rise to 30%. US$4 billion will go to mitigation, specifically renewable energy, energy efficiency, sustainable transport and smart cities. US$2 billion will go to infrastructure resilience, climate-smart agriculture and climate disaster preparedness. [ADB Press Release]

ADB approved a US$100 million loan to China that will support efforts to improve water quality and reduce flood damage in the the Enshi Tujia and Miao prefecture. In Myanmar, a US$3 million grant will finance relief efforts in communities affected by recent flooding and landslides. [ADB Press Release on China] [ADB Press Release on Myanmar]

ADB’s President Takehiko Nakao assured the Bank’s continued partnership with China and expressed commitment to expand support to the Pacific Islands. [ADB Press Release on China] [ADB Press Release on Fiji]

Speaking at an AfDB high-level stakeholder consultative meeting, the Bank’s President Akinwumi Adesina called for a binding agreement at the Paris Climate Change Conference in December 2015, and “political will, sharply focused partnerships, and ambitious financing programs to address climate and its impact.” [AfDB Press Release] [IISD RS Story on the AfDB Event]

In Europe, EIB announced it will seek to target at least 25% of its lending at investments supporting climate action. Focused on strengthening the bank’s engagement on “climate-related investment and renewable energy,” the EIB Climate Action strategy will seek to leverage growing investment from the private sector. It also emphasizes investments in “projects aimed at adapting to climate changes which are already occurring” and sets the goal of mainstreaming climate change considerations into all EIB lending. [EIB Press Release]

EBRD announced it will aim to deliver US$18 billion in ‘green financing’ over the next five years, with the share of green financing of the Bank’s annual investments rising from 25% in 2011-2015 to 40% in 2016-2020. EBRD will scale up investments in, inter alia, renewable energy, energy efficiency, district heating and technology transfer. [EBRD Pres Release] [EBRD Infograph]

The World Bank reported on the launch of a REDD+ preparedness project in Sudan, valued at US$3.8 million and funded by the World Bank’s Forest Carbon Partnership Facility. The World Bank also reported on a REDD+ project in Madagascar that demonstrates how carbon “income from carbon credits offers a further incentive for communities to conserve… forests.” [World Bank Press Release on Sudan] [World Bank Story on Madagascar]

The GCF and Mali signed a grant agreement under the GCF Readiness and Preparatory Support Programme, under which Mali will receive US$300,000 for assembling a specialized GCF team at its Agency for Environment and Sustainable Development. [GCF Press Release]

The GEF published articles illustrating examples of the functionning of its recently-launched Sustainable Cities Program. Twenty-three cities in 11 developing countries will benefit from a total of US$1.5 billion mobilized by the programme over five years. [GEF Press Release] [GEF Story] [GEF Sustainable Cities Webpage]

During the general debate of the 70th session of the UN General Assembly (UNGA 70), France, the incoming presidency of the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC), announced it will increase its annual climate funding from US$3 billion to US$5 billion by 2020. [UNGA 70 Statement Summary]

At the UN Sustainable Development Summit, held from 25-27 September in New York, US, countries made climate finance-related announcements. Australia stated its contribution to the GCF would increase to US$200 million. Germany announced it expects to double its climate finance by 2020. The UK announced its climate finance will be increased by at least 50%, “to a further £5.8 billion of funding from April 2016 to March 2021.” [UK Government Press Release] [IISD RS Story on Climate Change Announcements]

Also, six major US banks issued a joint statement calling for cooperation among governments to reach a global climate change agreement, stressing that “clear, stable and long-term policy frameworks are needed to accelerate and further scale investments.” [Ceres Press Release]

In September, ADB, AfDB, EIB, the Inter-American Development Bank (IDB), the World Bank, the Climate Investment Funds (CIF), the GCF, the Adaptation Fund, the UN Environment Programme Finance Initiative (UNEP FI) and Norden published reports, newsletters, briefs and studies on, inter alia, the role of intended nationally determined contributions (INDCs) post-2020, climate change and health, carbon pricing trends, carbon asset risk and climate resilience.

An ADB report documents ADB’s portfolio of CIF projects. A report by EIB presents a thematic evaluation of the bank’s financing on climate mitigation action within the EU in 2010-2014. A factsheet by Norden showcases Nordic countries’ action on climate support, including contributions to the GCF. [ADB Publication] [EIB Publication] [Norden Publication]

AfDB’s July-August Climate Finance newsletter focuses on the themes of green growth in Africa, renewable energy, and resilience and development. [AfDB Climate Finance Newsletter July-August 2015]

A briefing note from AfDB examines INDCs, progress on African INDCs and how AfDB might use INDCs in the future. The brief recommends AfDB: communicate the potential significance of INDCs with national focal points; offer support to review and comment on INDC drafts; and think of INDCs as a greenhouse gas (GHG) emissions budget. [AfDB Publication on INDCs]

Publications by IDB explore health effects of climate change in Latin America and the Caribbean, and climate change impacts during droughts in a city in Peru. [IDB Publication on Health] [IDB Publication on Peru]

A book by the World Bank, on ‘Enhancing the Climate Resilience of Africa’s Infrastructure,’ evaluates the impacts of climate change on hydropower and irrigation expansion plans in the region’s main rivers basins. [World Bank Publication]

A report by the World Bank, titled ‘State and Trends of Carbon Pricing 2015,’ concludes that “the number of implemented or planned carbon pricing schemes around the world has almost doubled since 2012, with existing schemes now worth about [US]$50 billion.” In another report, the World Bank, jointly with the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF), suggests six principles for putting a price on carbon. The ‘FASTER Principles for Successful Carbon Pricing’ are: fairness; alignment of policies and objectives; stability and predictability; transparency; efficiency and cost-effectiveness; and reliability and environmental integrity. [World Bank Press Release] [World Bank Carbon Pricing Publication] [World Bank FASTER Publication]

A CIF factsheet looks at de-risking climate-smart investments, stressing that, for fulfilling the potential of public-private partnerships, investors need market signals, enabling environments, and incentives to invest in emerging economies. A CIF presentation presents key lessons from its Pilot Program for Climate Resilience (PPCR). [CIF Factsheet] [CIF Presentation]

The GCF’s Pledge Tracker presents the combined pledges and contributions made to the fund, which totaled US$10.2 billion on 1 September 2015. [GCF Pledge Tracker]

The report of the Adaptation Fund Board (AFB) to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP), released by the UNFCCC Secretariat, presents information on progress made on the Adaptation Fund in the period from 1 August 2014 to 31 July 2015. The report contains a draft decision for consideration by the CMP at the UN Paris Climate Change Conference. [AFB Report]

The Adaptation Fund also launched a new NGO Newsletter, which includes reports from the AFB’s 25th meeting and the fund’s East Africa regional hub launch. The newsletter also discusses the added value of the Adaptation Fund after the Paris conference. [Adaptation Fund NGO Newsletter September 2015]

UNEP FI, jointly with the World Resources Institute, launched a framework aimed at helping financial intermediaries and investors to systematically to identify, assess, and manage carbon asset risk. Laid out in the report ‘Carbon Asset Risk: Discussion Framework,’ it covers “key elements of addressing carbon asset risk during the process of making new financing or investment decisions and when managing existing investment portfolios.” [UNEP FI Publication]

On event-related news, ADB co-hosted a seminar in Kuala Lumpur, Malaysia, aimed at establishing a framework for developing disaster risk financing strategies in the region. [ADB Event Webpage]

On climate finance readiness capacity building, the GCF reported on a training event for national and regional accredited entities on the fund’s environmental and social safeguards (ESS) and gender policy, held in Songdo, the Republic of Korea. The GCF also organized a training on GCF processes for National Designated Authorities (NDAs) and focal points in the Middle East and Africa (MENA) region. [GCF Event 1] [GCF Event 2]

The Adaptation Fund posted videos from a National Implementing Entity (NIE) readiness seminar organized in Washington DC, the US. [Adaptation Fund Video 1] [Adaptation Fund Video 2]

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


related events