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

During December 2014, finance for climate change mitigation and adaptation projects was announced by the Asian Development Bank (ADB), African Development Bank (AfDB), Global Environment Facility (GEF), Inter-American Development Bank (IDB) and World Bank.

Germany, Norway and the UK also reported on funding for projects to be undertaken in Africa, Asia and Latin America.

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) released its annual report, and publications on REDD+, climate finance and climate change awareness were produced by the Climate Investment Funds (CIF), GEF, and IDB, respectively.

Climate Finance Update19 December 2014: During December 2014, finance for climate change mitigation and adaptation projects was announced by the Asian Development Bank (ADB), the African Development Bank (AfDB), the Global Environment Facility (GEF), the Inter-American Development Bank (IDB) and the World Bank. Germany, Norway and the UK also reported on funding for projects to be undertaken in Africa, Asia and Latin America. The Caribbean Catastrophe Risk Insurance Facility (CCRIF), the Climate Investment Funds (CIF), the GEF and IDB released climate-related publications.

On projects, ADB announced support for a number of transport infrastructure projects to reduce greenhouse gas (GHG) emissions. ADB signed loans of up to US$450 million to assist China in curbing emissions from vehicle and river transport, through the installation and operation of approximately 820 liquified natural gas (LNG) and compressed natural gas (CNG) refueling stations. [ADB Press Release, China]

ADB loan assistance of US$4.2 million will upgrade metro stations in Ha Noi, Viet Nam, reducing congestion and pollution. The project will also be supported by US$49 million from the ADB-administered CIF Clean Technology Fund and US$5.8 million from the Government of Viet Nam. [ADB Press Release, Viet Nam]

A US$100 million loan agreement between ADB and the Government of Fiji will allow Fiji to invest in sustainable land and maritime transport infrastructure, with a specific focus on climate change resilience. [ADB Press Release, Fiji]

ADB also approved a loan of US$150 million to finance the overhaul of urban infrastructure to increase sustainability in two medium-sized cities in China’s Jilin Province. In addition to improving water supply, promoting resource efficiency and introducing integrated solid waste management, the projects will promote the extension of low-carbon transport. [ADB Press Release]

In a joint project with the GEF, ADB announced US$120 million in financing to design an efficient urban transport system in Ji’an, China. The project will develop an urban road network with non-motorized transport facilities and a bus rapid transit (BRT) corridor to help link a planned high-speed rail station with the city. The GEF is providing US$2.55 million in grant co-financing for introducing and monitoring operation of 12 diesel hybrid electric buses and development of an integrated transport and land-use plan, to reduce the carbon footprint of Ji’an’s transport system. [ADB Press Release]

AfDB provided financial and technical support to the African Group of Negotiators to support’s Africa’s agenda at the Lima Climate Change Conference. [AfDB Press Release]

The GEF committed US$100 million to a sustainable cities programme that will assist cities in accessing urban management tools and developing sustainability plans to reduce energy consumption, GHG emissions and climate vulnerability. [GEF Press Release, Sustainable Cities]

On transport, the GEF-6 replenishment period will provide US$210 million for energy-efficient, low-carbon transport, the GEF announced. Projects supported will include the design of sustainable urban strategies, land-use management, innovative policies for freight, and systems that reduce demand for car travel. [GEF Press Release, Transport]

On deforestation, the GEF introduced an integrated programme on ‘Taking Tropical Deforestation out of Commodity Supply Chains’ with US$45 million in funding. The programme will help cut methane and carbon dioxide (CO2) emissions from the production of such commodities as soy, beef and palm oil by tackling key drivers of deforestation. [GEF Press Release, Deforestation] [GEF Brochure: Taking Tropical Deforestation out of Commodity Supply Chains]

Lastly, the GEF also started a US$110 million non-grant pilot programme that will facilitate innovative financing for the environment, including climate change. [GEF Press Release, Non-Grant Pilot]

IDB announced its first adaptation pilot project approved under CIF’s Pilot Program for Climate Resilience (PPCR) will support Jamaica in mainstreaming climate change into its development planning. The US$10 million highly concessionary loan and US$7,895,000 grant aim to strengthen Jamaica’s resilience in watershed management, agriculture and tourism. [IDB Press Release, Jamaica]

In Peru, IDB approved a package of loans totaling US$750 million for the expansion of the underground metro in Lima. The project is expected to significantly reduce transportation-related GHG emissions. IDB also announced an additional US$40 million loan for Peru to improve its rural land registration and titling, which will encourage land-related investment and increase agricultural productivity. [IDB Press Release, Peru]

The World Bank committed to US$1 billion of financing for Bangladesh, with US$375 million of the funds going toward the Multipurpose Disaster Shelter Project (MDSP), which will “benefit 14 million people among the coastal population living in the front line of climate change,” according to MDSP Task Team Leader Anna C. O’Donnell. MDSP aims to build 552 multipurpose disaster shelters, improve 450 existing shelters, and build connecting roads and communication networks. [World Bank Press Release]

The NAMA Facility, a joint project of Germany and the UK that supports Nationally Appropriate Mitigation Actions (NAMAs), announced the results of its second call for projects. Starting in 2015, the Facility will support the respective climate change mitigation projects of Burkina Faso, Peru, Thailand and Tajikistan on sustainable biomass energy, low-emission buses and trains, highly efficient refrigeration and air conditioning, and forest conservation and reforestation. [NAMA Facility Press Release, Projects]

The Facility also announced that Denmark and the European Commission have become donors, enabling a substantial increase in the funding available (expected at approximately €85 million) for the third call for projects in 2015. [NAMA Facility Press Release, Donors]

Norway announced NOK76 million in funding to restore tropical forests and landscapes, primarily in Brazil, Indonesia, Mexico, Colombia, Ethiopia and Rwanda. The project recognizes the need to not only curb emissions, but also sequester carbon. [Government of Norway Press Release]

On publications, CCRIF’s Annual Report for 2013-2014 notes that no tropical cyclone and earthquake events resulted in pay-outs during the 2013-2014 financial year. The Facility issued 29 policies to 16 Caribbean countries, with eight countries committing to purchase the Excess Rainfall Product. The report also announces that CCRIF will soon offer loan portfolio coverage to financial institutions in the region. [Publication: CCRIF Annual Report 2013-2014]

CIF published a report on ‘Linkages between REDD+ Readiness and the Forest Investment Program (FIP),’ exploring how FIP has supported REDD+ readiness in its pilot countries and summarizing how REDD+ readiness has advanced FIP programming. The analytical framework used in the report employs 15 institutional, technical, political and financial criteria to compare across programmes. [Publication: Linkages Between REDD+ Readiness and the Forest Investment Program]

The GEF produced a brochure detailing the approaches it is taking to spur transformational change in the private sector. The document, titled ‘GEF’s Private Sector Engagement in Climate Finance,’ lists the five channels of the GEF’s engagement with the private sector and gives examples of programmes and projects implemented under each channel. Projects highlighted include the Green Energy Schemes for Low-Carbon City (China), Africa Renewable Energy Fund (with AfDB), the Public-Private Partnership Programme and the Global Cleantech Innovation Programme. [Publication: GEF’s Private Sector Engagement in Climate Finance]

IDB has partnered with QuizUp to create both an educational and entertaining way to raise awareness of the climate change challenges confronting the Latin American region. The quiz features rounds of seven timed questions developed by IDB and the ability to compete with players across the globe. [IDB 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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