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CLIMATE CHANGE FUND

PROGRESS REPORT As of 31 December 2017

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CONTENTS

ABBREVIATIONS .......................................................................................................................... ii EXECUTIVE SUMMARY .............................................................................................................. iii I. INTRODUCTION .................................................................................................................. 1 II. FINANCIAL STATUS ............................................................................................................ 1 III. RESULTS PROGRESS ........................................................................................................ 5 IV. LESSONS LEARNED, ISSUES AND STEPS FORWARD ................................................. 10 Appendices

1 Climate Change Fund: Governance Structure .................................................................... 14 2 Projects Supported by the Climate Change Fund ............................................................... 16 3 Climate Change Fund Allocations by Component and Modality ......................................... 25 4 Climate Change Fund Allocations by Component and Region ........................................... 26 5 Climate Change Fund: Statement of Expenditures ............................................................. 27 6 Completed Climate Change Fund Supported Projects ....................................................... 36

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ABBREVIATIONS

ACliFF – Asia-Pacific Climate Finance Fund ADB – Asian Development Bank CCF – Climate Change Fund CCOF2030 – Climate Change Operational Framework 2017-2030 CPS – Country Partnership Strategy CRVA – climate risk and vulnerability assessment DC – direct charge DMC – developing member country DMF – design and monitoring framework GCF – Green Climate Fund GCI – grant component of investment GFCF – Green Finance Catalyst Facility GHG – greenhouse gas NDC – nationally determined contributions PRC – People’s Republic of China REDD+ – reduced emissions from deforestation and forest

degradation SDG – Sustainable Development Goals TA – technical assistance TALL – technical assistance linked to loan

WEIGHTS AND MEASURES

MW – megawatt tCO2 – ton of carbon dioxide TWh-eq – terawatt-hour equivalent

NOTES

(i) In this report, “$” refers to United States dollars.

(ii) In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Cover photos: Climate change impacts and actions. (From left to right) A windmill along the new highway from Almaty to Bishkek in Kazakhstan; heavy rainfall during Typhoon Ketsana floods Metro Manila in the Philippines; earthquake damage in Timbu, Helambu, Nepal; a woman installing solar panels on the roof in Bhutan; and a child fixing a fishing net in Indonesia (photos by ADB).

EXECUTIVE SUMMARY

1. The Climate Change Fund (CCF) was established to facilitate greater investments in the Asian Development Bank’s (ADB’s) developing member countries (DMCs) to effectively address the causes and consequences of climate change alongside ADB’s own assistance in various related sectors. CCF is a vital resource for projects that lead to greenhouse gas emissions reduction and carbon sequestration; biodiversity conservation; and climate proofing of development plans, investments, and livelihoods; delivered through its four financing components: (i) adaptation, (ii) clean energy, (iii) reduced emissions from deforestation and degradation, and improved land use management (REDD+ and land use), and (iv) climate finance readiness. 2. In 2008, ADB allocated $40 million of its net income to set up the CCF. On the basis of strong demand driven by global climate developments and evolving corporate climate change-related goals, the fund received replenishments in 2010, 2013 and 2017, bringing total CCF resources to $75.7 million. As of 31 December 2017, $61.4 million has been allocated to 88 projects, with 50 completed and closed projects. Of the 88 projects, 39 ($19.9 million) are on adaptation, 38 ($34.5 million) are on clean energy, ten ($6.8 million) on REDD+ and land use, and one ($0.2 million) on climate finance readiness. With additional related fees amounting to $2.3 million, the remaining resources available for allocation amount to $16.1 million.

3. Adaptation. CCF has contributed to enhancing the climate resilience of infrastructure and other investments through the integration of climate risk management in ADB’s business processes; strengthening of adaptation planning and institutional capacities at various levels and key sectors; strengthening of national and regional responses to social dimensions of climate change, particularly health and migration; supporting knowledge development and knowledge sharing on climate change impacts in the Asia and Pacific region; and best practices and technologies for effective adaptation. CCF has been instrumental in the development of climate risk and vulnerability assessments for 34 projects exposed to medium to high risk from climate change. 4. Clean Energy. CCF has facilitated the deployment of 18 new clean energy technologies, introduced four new approaches or methodologies promoting clean energy, and helped lower policy, financing, capacity and knowledge barriers to clean energy development. Nine projects are expected to contribute to a reduction of about 2.2 million tons of carbon dioxide emissions per year and generate 6.3 terawatt-hour equivalent of energy savings per year. 5. Reduced Emissions from Deforestation and Degradation and Improved Land Use

Management. CCF has incorporated REDD+ into the design of eight forest and forest-related projects, provided important platforms for enhancing REDD+ interventions under the Forest Investment Program of the Climate Investment Funds, provided lessons and levers for incorporating REDD+ activities into future development investments, and contributed to strengthening REDD+ capacity at various levels. Key activities focus on the development of sustainable land management projects to reduce deforestation and increase carbon sequestration while enhancing water security and community livelihoods, protection of forest watersheds, and conservation of forest carbon stocks. In 2017, focus was given on capacity building in ecosystem-based adaptation and nature-based solutions to climate and disaster risk management, as well as in protecting and investing in natural capital. 6. Climate Finance Readiness. CCF has supported the enhancement of DMCs’ climate finance readiness to better access scaled-up climate finance from external sources. It helped

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establish the Asia-Pacific Climate Finance Fund, a multi donor fund focused on the development of climate-relevant financial risk management products. In 2017, it began supporting the Green Finance Catalyst Facility in identifying green selection criteria for project financing. 7. Climate Investment. CCF has catalyzed significant climate investments. The $19.9 million allocation on adaptation has enhanced investments worth $168.4 million in associated ADB financing. CCF activities are anticipated to lead to further increases in adaptation investments through improved national and local planning capacities and the completion of various impact and vulnerability assessments. The $34.5 million allocations on clean energy have been associated with around $265.6 million of ADB investments, while the $6.8 million allocations on REDD+ and land use have supported $293.2 million of related investments and cofinancing. 8. Policy, Knowledge and Capacity Development. CCF has served as a key mechanism for providing support towards the development of climate policies, building knowledge and capacities to mitigate and adapt to impacts of climate change, mainstreaming climate risk management in investments, and increasing the use of climate technologies in the region. CCF has contributed to integrating climate change in ADB’s operations by supporting: (i) investments in clean energy, (ii) reengaging in forest and land use management activities tied to carbon sequestration objectives, and (iii) building a program of support to DMCs for climate change adaptation. CCF has also helped fortify climate change and disaster risk management in ADB operations, implement ADB’s climate risk management framework, and facilitate DMC access to global and regional climate funds. 9. Opportunities for the Climate Change Fund. With replenished resources in 2017, CCF provides an opportunity to effectively and efficiently support DMCs’ climate objectives under the Paris Agreement and the Sustainable Development Goals (SDG). DMCs require assistance for refining and implementing their nationally determined contributions (NDCs), which outline country commitments on climate change mitigation and adaptation under the Paris Agreement. CCF activities will be guided by ADB’s forthcoming Strategy 2030 in which tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability is one of seven operational priorities; and the Climate Change Operational Framework 2017–2030 (CCOF2030). Through the five operational principles of the CCOF2030, ADB is supporting DMCs to achieve their NDC targets, while accelerating low greenhouse gas emissions development, promoting climate change adaptation, integrating climate adaptation and disaster risk management, and linking climate action to the wider SDG agenda. ADB is currently developing an NDC program to enhance its financing and capacity building support on DMCs’ NDC development and implementation.

10. CCF will support the achievement of ADB’s target to increase climate financing from its own resources to $6 billion by 2020. It will continue its role in catalyzing climate change investments; facilitating the integration of more advanced, low-carbon and climate-resilient technologies and practices in projects; and building knowledge and capacity, consistent with the needs and priorities of ADB DMCs.

11. Demand for CCF support is anticipated to substantially increase and become more diversified. NDC development and implementation, including the translation of NDC into climate investment plans and implementation of the plans; mainstreaming of climate considerations in policies, strategies, plans and projects; and assessment of climate risks and integration of climate resilience in ADB investments through climate risk and vulnerability assessments, will be key areas for CCF support. Given the scale of anticipated demand from the DMCs, ADB would need to strengthen fundraising initiatives. ADB may also consider more flexibility in CCF’s governing

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rules, to consider other emerging delivery modalities of financing to provide more opportunities for ADB to deploy additional funds into CCF from external sources.

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I. INTRODUCTION

1. In 2008, the Asian Development Bank (ADB) established the Climate Change Fund (CCF) to facilitate greater investments in its developing member countries (DMCs) to effectively address the causes and consequences of climate change. Appendix 1 contains the CCF governance structure. Through its four delivery modalities: (i) grant component of investment (GCI), (ii) technical assistance linked to loan (TALL), (iii) technical assistance (TA), and (iv) direct charges (DC)1, CCF provides financing to four types of interventions represented by components:

i) Adaptation - supporting initiatives and interventions that enhance the climate

resilience of infrastructure and other investments, community livelihoods and key sectors, especially in the following highly vulnerable geographic areas: (i) arid and rain-fed agricultural areas, (ii) high mountain areas, (iii) densely populated coastal lowlands and deltas, and (iv) low-lying islands.

ii) Clean Energy Development - supporting interventions that (i) help DMCs achieve energy security and transition to low carbon economies through cost effective investments, especially in pre-commercial clean energy technologies that result in greenhouse gas (GHG) emissions reduction; and (ii) provide financial, policy, and institutional reforms, as well as regulatory frameworks that encourage clean energy access and development.

iii) Reduced Emissions from Deforestation and Degradation and Improved Land

Use Management (REDD+ and land use) - supporting interventions that (i) maintain, restore, and enhance carbon-rich natural ecosystems, especially forests, and prevent these carbon sinks from becoming sources of GHG emissions; and (ii) maximize co-benefits from sustainable development and the conservation of biodiversity and generation of other ecosystem services and ecological processes.

iv) Climate Finance Readiness - supporting the enhancement of necessary DMC capacity for accessing external climate financing, a critical area for scaling-up of climate action

2. This report informs on the integrated progress of CCF activities as of 31 December 2017, in terms of the financial status and achievements or operational results. It also highlights the key issues and lessons, and discusses possible future directions.

II. FINANCIAL STATUS

3. Contributions. In 2008, ADB provided an initial allocation of $40 million from its net income to set up the CCF. Based on strong demand and good performance, ADB replenished the fund by $10 million in 2010 and $9 million in 2013 through net income transfers. On 6 May 2017, the ADB Board of Governors approved a replenishment of $15 million to the CCF. Currently, total CCF resources amount to $75.7 million — comprising $74 million in contributions and $1.7 million in interest/investment income.2 Of these resources, $74.6 million have been appropriated across the CCF’s four components (Table 1).

1 Direct charge is a financing modality supporting critical project- and operational-related expenses provided these

support the objectives of CCF and its components and CCF is the only source of financing. Direct charges may also cover financing for fees for external audit and financial charges for the CCF.

2 Source: ADB Controller’s Department. Monthly Financial Report 31 December 2017.

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Table 1: CCF Contributions vs. Allocations, as of 31 December 2017 ($ million)

CCF = Climate Change Fund, REDD+ = Reduced Emissions from Deforestation and Forest Degradation. a Currently consists of ADB's contributions to the fund from its net income. CCF resources are then apportioned across components,

as approved by the Climate Change Steering Committee.

b Contribution from interest/investment income provided to Clean Energy component amounting to $550,000. c Projects allocated with funding as approved by the Climate Change Steering Committee. d Include unutilized portion of amount allocated to and savings from administrative fees of closed projects. e Include unallocated resources and savings. Note: Totals may not add up due to rounding. Source: Asian Development Bank estimates. 4. Allocations.3 As of 31 December 2017, $61.4 million of the total CCF contributions have been allocated to 88 projects, and additional related fees amounting to $2.3 million, resulting in total allocations of $63.7 million (85.5%) (Table 1).4 Of the 88 projects, 39 ($19.9 million) are on adaptation, 38 ($34.5 million) are on clean energy development, ten ($6.8 million) are on REDD+ and land use, and one ($0.2 million) on climate finance readiness. Figure 1 presents the annual allocations while Appendix 2 contains the complete list of projects supported by CCF to date.

Figure 1: CCF Allocations to Projects and Replenishments, 2008-2017,

as of 31 December 2017 ($ million, inclusive of administrative fees)

CCF = Climate Change Fund, REDD+ = Reduced Emissions from Deforestation and Forest Degradation. Source: Asian Development Bank estimates.

3 CCF resources are allocated to projects based on the approval of the Climate Change Steering Committee.

Allocations accounted in this section are those approved by the Climate Change Steering Committee, as of 31 December 2017, but not necessarily approved by ADB.

4 Fees pertain to standard ADB administration costs per project.

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5. Across delivery modalities, the largest share of CCF resources went to TAs, indicating strong support to capacity and knowledge enhancement as well as to policy and project development to address climate change. This is followed by GCIs, TALLs, and finally DCs (Figure 2). The breakdown of allocations by modality per component is in Appendix 3. 6. The CCF Implementation Guidelines5 prescribes a target GCI (including TALL) to TA (including DC) ratio of 70:30 for clean energy allocations, to reflect the strategic balancing of allocations for investments in technology and infrastructure that directly contribute to GHG emissions reductions versus the development of DMCs’ institutional and technical capacity to support their transition to low carbon and climate-resilient economies. As of 31 December 2017, CCF’s clean energy allocations for GCIs amount to $10.8 million, while TALLs amount to $4.4 million, TAs amount to $18.3 million, and DCs amount to $1 million. These clean energy allocations result in a GCI:TA ratio of 44:56 (Appendix 3). 7. Demand for CCF support is generally driven by country priorities and the extent to which climate change has been integrated in the country partnership strategies (CPSs) or country operational

business plans (COBPs). Regional projects (i.e. covering two or more DMCs across ADB regions) have received the bulk of CCF resources at 37.3%, highlighting ADB’s programmatic approach to supporting climate actions (Figure 3). CCF regional projects involve capacity development activities that aim to build knowledge, develop policy options and encourage innovations that can create an enabling environment for climate action. These include technical services procured by the Sustainable Development and Climate Change Department for regional departments, and conduct of regional workshops. Regional projects also cover support to the private sector to enhance climate investments. 8. Next to regional projects, East Asia has received the second largest share of CCF resources (25.3%), followed by South Asia, Southeast Asia, the Pacific, and lastly, Central and West Asia. Projects financed by CCF in East Asia are concentrated in the People’s Republic of China. The PRC has the world’s largest population and is the world’s largest GHG emitter, mainly from heavy industry and energy production. CCF support in the PRC is largely on clean energy

5 The CCF Implementation Guidelines have been updated which took effect on January 2018.

Figure 2: CCF Allocations by Modality, as of 31 December 2017 ($ million, exclusive of fees)

CCF = Climate Change Fund, DC = direct charges, GCI = grant component of investment, TA = technical assistance, TALL = technical assistance linked to loan. Source: Asian Development Bank estimates.

Figure 3: CCF Allocations by Region, as of 31 December 2017 ($ million, exclusive of fees)

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CCF = Climate Change Fund, REG = regional. Source: Asian Development Bank estimates.

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and focuses on climate mitigation. South Asia, with allocations in Bangladesh, India, Nepal, and Sri Lanka, received a significant share of adaptation allocations. This region is recognized as being especially vulnerable as a result of the combined effects of poverty, frequent and severe extreme weather events, and continuing reliance of livelihoods on climate-sensitive sectors. Meanwhile, Southeast Asia received the largest share of the REDD+ and land use allocations. It is the ADB region with the highest potential for reducing emissions through sustainable forest management and land use. Appendix 4 provides more details.

9. Figure 4 presents the sector distribution of CCF allocations.6 Energy sector projects have received the largest share of overall CCF resources, reflecting the fund’s main focus on mitigation. Agriculture, natural resources and rural development projects make up the second largest portion, demonstrating that CCF focuses its adaptation efforts on the sectors most vulnerable to climate change. 10. Project Disbursements. The unaudited Statement of Technical Assistance/Grant Expenditures and Direct Charges (Appendix 5) as of 31 December 2017 prepared by the Controller’s Department, reports a total of $45.4 million cumulative disbursements, which accounts for 81% of the total ADB approved allocations for 81 disbursing projects (Table 2).

Table 2: CCF Disbursements,

as of 31 December 2017 ($ million)

CCF= Climate Change Fund, GCI = grant component of investment, REDD+ = Reduced Emissions from Deforestation and Degradation, TA = technical assistance, TALL = technical assistance linked to loan. Note: Includes projects that have been approved by ADB. Totals may not add up due to rounding off. Three direct charge projects are accounted under direct charge project, REG: Supporting Climate Risk and Vulnerability Assessment (CRVA) Studies for Climate Resilient Investment Project Design. a Excludes unutilized commitment/savings. Computed based on the following formula: % Disbursed = Total Disbursements/

(Approved Allocation - Savings). Source: Asian Development Bank estimates.

6 The sector classifications of all project allocations since the beginning of the fund have been aligned with ADB’s

2014 Project Classification System. Sector shares are therefore not comparable with reports prior to 2016.

Amount($ million)

No. of Projects

Amount($ million)

No. of Projects

Amount($ million)

No. of Projects

Amount($ million)

No. of Projects

Amount($ million)

No. of Projects

Adaptation 0.80 1 3.08 5 7.15 12 3.15 17 14.18 35 19.86 79% 5.68 Clean Energy 10.02 4 4.08 5 12.86 19 0.61 9 27.57 37 34.51 88% 6.94 REDD+ and Land Use 0.85 1 - 0 2.56 3 0.22 4 3.63 8 6.81 53% 3.18 Climate Finance Readiness - 0 - 0 0.07 1 - 0 0.07 1 0.24 28% 0.17 Total 11.66 6 7.17 10 22.64 35 3.98 30 45.45 81 61.41 81% 15.96

Item

Disbursements

Undisbursed($ million)

ADB-Approved

Allocations ($ million)

% of Disbursements to Total ADB-

Approved Allocationsa

GCI TALL TA DC Total

Figure 4: CCF Allocations by Sector, as of 31 December 2017 ($ million, exclusive of fees)

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ANR = agriculture, natural resources and rural development. Source: Asian Development Bank estimates.

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III. RESULTS PROGRESS

11. The selection and prioritization of projects to be financed by the CCF is guided by the overall objective of facilitating greater investments in DMCs to address the causes and consequences of climate change alongside ADB’s own assistance in various related sectors. CCF contributes to ADB’s annual climate finance commitment of $6 billion from its own resources by 2020, of which $4 billion will be for mitigation and $2 billion will be for adaptation. CCF operations are guided by the design and monitoring frameworks (DMFs).7 The CCF operational progress as of 31 December 2017 is described below. 12. CCF is supporting projects which contribute to reducing developing member

countries’ vulnerability to climate change impacts and strengthening their capacities to

address climate change risks. About $19.9 million of CCF resources were allocated to 39 projects on adaptation, covering 18 DMCs (Appendix 2). Targets have been surpassed relative to increasing the amount of adaptation investment to $10 million, demonstrating the catalytic and leveraging potential of the CCF in scaling up adaptation investments; climate-proofing three investment projects; integrating adaptation in three CPSs; increasing four countries’ experience on sector/thematic resilience and strengthening five countries’ national or subnational strategies or action plans. Of the 39 projects on adaptation supported by CCF, 20 are ongoing while 19 have been completed. The results of the completed projects are described in Appendix 6. 13. CCF is supporting the increase in adaptation investments in ADB’s core sectors

and themes.8 Adaptation activities have effectively led to $168.4 million in associated financing. This leveraging capacity is expected to increase as a result of the development of a more robust pipeline of adaptation projects brought on by improved national/local planning capacities, and the completion of various impact/vulnerability assessments and adaptation planning activities.

14. CCF is contributing to climate-resilient investments by supporting the development of climate risk and vulnerability assessments (CRVA) of 34 investment projects covering 11 DMCs, i.e., the PRC (15), Pakistan (5), Viet Nam (3), Myanmar (2), Mongolia (2), Uzbekistan (2), Bhutan (1), India (1), Kazakhstan (1), Timor-Leste (1), and Tuvalu (1).9 (Box 1)

7 The DMFs for clean energy and adaptation are available upon request. 8 Operations on adaptation under CCF are guided by its DMF. As of this writing, update to the DMF is in progress. 9 ADB. Climate Risk Management in ADB Projects. https://www.adb.org/publications/climate-risk-management-adb-

projects.

Box 1: Regional: Supporting Climate Risk and Vulnerability Assessment Studies for Climate Resilient Investment Project Design

In 2014, the Climate Change Fund (CCF) allocated $2.2 million to this direct charge (DC) to provide a dedicated cost center to support the conduct of climate risk and vulnerability assessments (CRVAs) in support of ADB projects on short turn-around through engagement of specialized consulting services and institutions to provide expert inputs and services on climate change adaptation. Due to strong demand, another DC allocation of $1.5 million to conduct CRVAs was made in 2017. Among the projects that have been approved for which CRVAs were supported by CCF include: (i) People’s Republic of China: Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Project (adaptation finance: $6.3 million), (ii) People’s Republic of China: Qinghai Haidong Urban-Rural Eco Development Project (adaptation finance: $9.4 million), and (iii) Bhutan: Thimphu Road Improvement Project (adaptation finance: $0.3 million).

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15. CCF is contributing to the development of climate change adaptation strategies and

action plans and has also supported the enhancement of existing plans in several DMCs. Among the national adaptation strategies that CCF helped develop are the National Climate Change Adaptation Strategy for Sri Lanka and the National Action Plan for Climate Change in India.

16. CCF is contributing to the strengthening of adaptation planning and implementation

capacities at various levels and key sectors at risk, for instance, through the TA Regional: Supporting Adaptation Decision Making for Climate Resilient Investments (Box 2).

17. CCF is improving the knowledge base by supporting initiatives that enhance the

understanding of the impacts of climate change. Through the DC, Regional: 5th Asia Pacific Climate Change Adaptation Forum, CCF supported the development of innovative knowledge products and services by providing a platform for adaptation practitioners to share and learn from the experience of their peers on the practical solutions to address the challenges of climate change in Asia and the Pacific (Box 3). Similarly, CCF through the DC featured in Box 1, enabled the publication of Region at Risk: The Human Dimensions of Climate Change in Asia and the Pacific, an ADB flagship knowledge product which provided an assessment of the impacts of climate change on human dimensions such as migration, security, cities, supply chains and health.10

18. CCF is supporting activities that strengthen national and regional responses to the

social dimension of climate change, particularly on health and climate-induced migration.

Through the DC, Regional: Managing Climate Impacts on Health in Water and Agriculture

10 ADB. A Region at Risk: The Human Dimensions of Climate Change in Asia and the Pacific.

https://www.adb.org/publications/region-at-risk-climate-change

Box 2: Regional: Supporting Adaptation Decision Making for Climate Resilient Investments In 2017, the Climate Change Fund provided financing to this technical assistance (TA), which aimed to mainstream adaptation and climate resilience in development planning and project design; and to support regional public goods including effective regional responses to climate change. The TA will enhance decision making for climate-resilient investments in selected DMCs through (i) development of country-specific climate projections to support planning, (ii) provision of technical support for ADB operations to integrate climate resilience features in projects, and (iii) development and delivery of good practice guidance on climate-resilient infrastructure design and associated training modules.

Box 3: Regional: 5th Asia Pacific Climate Change Adaptation Forum In 2016, the Climate Change Fund financed under a direct charge the participation of representatives from the Asian Development Bank’s developing member countries and resource speakers, and other related preparatory activities, to the 5th Asia Pacific Climate Change Adaptation Forum which focused on Adapting and Living below 2oC: Bridging the Gaps in Policy and Practice held from 17-19 October 2016 in Colombo, Sri Lanka. The forum aimed to: (i) build on the momentum and outcomes of previous Asia Pacific Adaptation Network (APAN) events and allow for a retrospective evaluation and review of recent developments in adaptation as basis towards the next action steps; (ii) raise awareness and understanding of potential adaptation project opportunities in the region and matching these with available climate funding sources, especially from the private sector; and (iii) identify priority knowledge, policy and funding gaps. APAN is a regional network established by ADB, United Nations Environment Programme (UNEP), Institute for Global Environmental Strategies, and Asian Institute of Technology UNEP Regional Resource Center for Asia and the Pacific.

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Sectors, CCF supported activities that aimed to improve understanding and capacity to address health impacts of climate change in the water and agriculture sectors. CCF also financed the TA Regional: Policy Options to Support Climate-Induced Migration, which implemented activities that improved knowledge on the interaction between the environment and migration, raised awareness on the policy issues of, as well as possible solutions to, climate-induced migration. Key recommendations to governments included: (i) promotion of adaptation and broader development aims; (iii) improvement of the condition of migrants; (ii) increase in knowledge and awareness of climate-induced migration; (iv) strengthening of international cooperation; and finance responses to climate-induced migration. 19. CCF is supporting projects that help lower the barriers to clean energy

investments.11 To date, all 38 clean energy projects are expected to enable clean energy development through production and/or dissemination of knowledge products or contribution to capacity building in DMCs. 20. CCF is helping increase clean energy investments in developing member countries,

contributing to ADB’s target of increasing mitigation finance to $4 billion by 2020. About $34.5 million of CCF resources were allocated to 38 projects contributing to clean energy development in 14 DMCs. Twenty-nine projects have been completed while nine are still ongoing. To date, total allocations to mitigation projects are expected to leverage about $265.6 million of ADB’s clean energy investments, indicating that $1 of CCF clean energy financing will translate to $8 of clean energy investments (Appendix 2). 21. CCF is supporting projects anticipated to result in significant energy savings and

carbon dioxide emissions reduction. CCF supported GCIs and TALLs which are expected to contribute to emissions reduction of about 2.2 million tons of carbon dioxide (tCO2)/year and energy savings of 6.3 terawatt-hour equivalent (TWh-eq)/year of energy and non-energy projects (i.e. water and transportation projects). For instance, support for the Nepal: Compact Fluorescent Lighting and Solar-Powered Street Lighting will contribute to the reduction of 15,000 tCO2/year and generate 23,750 megawatt-hour of energy savings. CCF supported the two demand side management interventions: (i) energy efficient lighting (i.e., compact fluorescent lighting), and (ii) stand-alone renewable energy-based street lighting using solar or hybrid powered street-lighting; which significantly contributed to the reduction in the lighting load, relieving the burden on the system in terms of both energy and peak-load capacity. 22. CCF is facilitating the deployment of new technologies with strong demonstration

effect. Aligned with ADB’s 2009 Energy Policy, CCF facilitates DMCs’ adoption of cleaner technologies in meeting the electricity demand of the region and in the interest of economic and development needs. Allocations to 18 projects to date are expected to contribute to the deployment of 18 clean energy technologies, e.g., solar photovoltaic, compact fluorescent lighting, mini hydropower, energy efficiency in industrial/commercial/manufacturing sector. 23. CCF is introducing new approaches or methodologies to promote clean energy. CCF is supporting five projects expected to contribute to the introduction of four new approaches or methodologies, which include the assisted broker model for transfer of low carbon

11 Clean energy operations of the CCF are guided by the clean energy funds DMF, which is shared with ADB’s Clean

Energy Financing Partnership Facility (CEFPF). Contributing partners to the CEFPF are from the governments of Australia, Canada, Japan, Norway, Spain, Sweden, United Kingdom, and the Global Carbon Capture and Storage Institute.

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technologies, venture capital advisory facility, national cap and trade based emission trading system, and carbon emission estimation and monitoring framework. 24. CCF is contributing to the delivery of access to energy and provision of health, and

productivity benefits. Aligned with the strategic agenda of inclusive economic growth under ADB’s Strategy 2020, CCF supports projects that provide health and productivity benefits. For instance, the People’s Republic of China: Strategic Policy Study on Collaborative Control of Air Pollution and Carbon Emissions in the Transport Sector aims to control air pollution and GHG emissions in the transport sector by 2025 through enhanced policies, and consequently, expected to help improve public health (Box 4).

25. CCF is supporting the enhancement of the carbon sequestration potentials of the

region’s forests and soils and prevents these carbon sinks from becoming sources of

greenhouse gas emissions. These interventions are also expected to generate multiple co-benefits such as biodiversity conservation, maintenance of ecological balance and ecosystem services and functions, and improved livelihood for the poor, while contributing to climate change mitigation. CCF resources amounting to around $6.8 million were allocated to ten REDD+ and land use projects, with eight currently ongoing and two already completed. 26. CCF is supporting the incorporation of REDD+ in project design of eight forest and forest-related projects. These projects cover Cambodia, the PRC, Indonesia, the Lao People’s Democratic Republic, Myanmar, the Philippines, Thailand, and Viet Nam. Seven of these are in DMCs in Southeast Asia, which has the world’s highest potential for storing carbon through avoided deforestation and the largest mitigation potential in the agriculture sector. CCF also provided important platforms for enhancing REDD+ interventions under the Forest Investment Program of the Climate Investment Funds in Indonesia and the Lao People’s Democratic Republic. CCF is also supporting a TA that will identify and design at least five natural capital investments, as well as conduct analytical studies and design of initiatives that demonstrate potential for GHG reductions (Box 5).

Box 4: People’s Republic of China: Strategic Policy Study on Collaborative Control of Air Pollution and Carbon Emissions in the Transport Sector

In 2017, the Climate Change Fund provided financing to this knowledge and support technical assistance (TA), which will support the formulation of a strategy in controlling both air pollution and greenhouse gas (GHG) emissions from the transport sector, to enhance the co-benefits in the PRC. The TA is designed to deliver: (i) Guidelines on Assessing Co-benefits of Policies and Measures for Controlling Air Pollution and GHG Emissions in the Transport Sector, and (ii) Strategy for Enhancing Collaborative Control of Air Pollution and GHG Emissions in the Transport Sector of the PRC. These outputs will provide innovative tools on assessing co-benefits of technologies and measures, and will recommend prioritizing the implementation of technologies and measures with significant co-benefits in the transport sector to achieve the maximum co-benefits.

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27. CCF is contributing to lessons and opportunities for incorporating REDD+ activities

into future investments. Such lessons are particularly important to ensure that ADB-supported REDD+ interventions provide maximum benefits for traditional forest-dwellers especially indigenous communities, and for biodiversity conservation. Lessons from REDD+ carbon market transactions as well as payments for ecosystem services, facilitated by the CCF pilot projects, will also contribute to enhancing approaches and methodologies for accelerating the growth of sustainable financing mechanisms for forest and natural resource conservation (Box 6).

28. CCF is driving REDD+ and land use related investments amounting to $293.2 million. About 72% of these investments are in ADB loans, TAs and grants, while 28% ($82.7 million) are from international financing mechanisms such as the Climate Investment Funds-Forest Investment Program ($31.8 million), and the Global Environment Facility ($11.83 million), international organizations such as International Fund for Agricultural Development ($20 million), international non-government organizations such as World Wildlife Fund ($2.0 million), ADB-administered single-donor trust funds such as Japan Fund for Poverty Reduction ($2 million), and governments, including governments of Finland ($14 million) and Sweden ($1.09 million) (Appendix 2).

29. CCF is strengthening REDD+ capacity at various levels. CCF covers demonstration projects that will enhance REDD+ capacity at various levels in DMCs. Key REDD+ readiness activities in the Greater Mekong Subregion and Indonesia focus on reducing deforestation and enhancing the capacity of local communities, particularly in estimating carbon stocks, designing interventions that will actually achieve reductions in emissions, and monitoring and evaluation of emission reductions. In the PRC, CCF will contribute to supporting the conservation and

Box 5: Regional: Protecting and Investing in Natural Capital in Asia and the Pacific In 2017, the Climate Change Fund allocated resources to this technical assistance (TA), which aims to improve natural capital assets of developing member countries (DMCs) by increasing their commitment to invest in natural capital. The TA will build the business case and capacity of DMCs to invest in natural capital. At least five analytical studies in five DMCs are being undertaken to inform the preparation of investments in the protection, management or sustainable use of natural capital. Preparation of these investments or investment components will be supported as well. Areas of focus will include (i) sustainable forest, land, and water management; (ii) sustainable agribusiness; (iii) urban water and flood management, (iv) coastal protection and (v) infrastructure designs that integrate measures to protect natural habitats and biodiversity.

Box 6: Regional: Promoting Ecosystem Services and Forest Carbon Financing in Asia and the Pacific

In 2013, the Climate Change Fund (CCF) financed this technical assistance, which aimed to increase integration of ecosystem service values within national and subnational development planning processes through increased commitment of developing member countries (DMCs) to integrate requirements for ecosystem service assessment within policies and regulatory frameworks. CCF assisted DMCs in accessing new sources of financing for the protection and management of ecosystems services through (i) increased knowledge and understanding on the economics of ecosystem services, REDD+ readiness and implementation, and carbon markets; and (ii) application of REDD+ and payment for ecosystem services in investments of ADB and its partners. Activities included the design of scaled-up investments for sustainable land and forest management in Myanmar and the integration of ecosystem services and climate change within land use planning in Viet Nam.

10

enhancement of forest carbon stocks. Capacity for natural capital investment is also currently being strengthened in select countries in the region.

30. CCF is contributing to the development of DMC capacity to access critical financing

from emerging climate finance mechanisms for scaling up climate change actions through the TA Regional: Enhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance. The TA supported the design and initial roll out of the Asia-Pacific Climate Finance Fund (ACliFF) (Box 7).12 It also supported the development of project proposals with financing from the Green Climate Fund (GCF).13 It has also supported the establishment of the Green Finance Catalyst Facility (GFCF) through the engagement of a consultant who developed the green selection criteria for project financing, in line with cofinanciers’ requirements especially the GCF.14 The GFCF will support the PRC’s estimated $320 billion annual requirement over five years to shift to an ecological civilization paradigm.

IV. LESSONS LEARNED, ISSUES AND STEPS FORWARD

31. CCF helps in building up ADB’s climate change investment portfolio. CCF is helping in ramping up climate actions in DMCs and has been an essential mechanism in building ADB’s portfolio of investments in: (i) climate change adaptation, (ii) clean energy, (iii) sustainable transport, and (iv) improved forest and land use management. CCF has provided key financing for activities enabling the development of ADB’s Climate Change Operational Framework 2017-2030 (CCOF2030). CCF financing enabled the preparation of key background studies supporting the development of the CCOF2030 and supported the conduct of the consultation workshop with DMC representatives on proposed directions on climate actions as contained in the draft CCOF2030 (Box 8).

12 ADB. Asia-Pacific Climate Finance Fund. https://www.adb.org/site/funds/funds/asia-pacific-climate-finance-fund. 13 This include support provided to the: (i) Urban Water Supply and Wastewater Management Project in Fiji (31 million

grant); (ii) Climate-Friendly Agribusiness Value Chains in Cambodia ($30 million in grant and $10 million concessional loan); (iii) Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal in Mongolia ($50 million in grant and $95 million in concessional loan).

14 ADB. China, People's Republic of: Green Finance Catalyzing Facility, see https://www.adb.org/projects/51194-003/main.

Box 7: Asia-Pacific Climate Finance Fund (ACliFF)

In April 2017, ADB established the Asia-Pacific Climate Finance Fund (ACliFF), a multi-donor trust fund to support the assessment, development and provision of financial risk management products that can help unlock financing for climate investments and improve resilience to the impacts of climate change. Financial risk management products can include technology performance guarantees to promote investment in clean technology or climate risk insurance. In line with ADB priorities to boost climate investment, ACliFF will support projects in the following sectors: (i) clean energy, including renewable energy and energy efficiency; (ii) sustainable transport; (iii) low-carbon and climate-resilient urban development; (iv) low-carbon and climate-resilient rural development, agriculture, and other land use; and (v) disaster risk management. As ACliFF’s first financing partner, the Government of Germany will provide its contribution to the ACliFF amounting to €28 million.

11

32. CCF helps in strengthening climate risk management in ADB developing member

countries. CCF is enhancing the management of climate risks in the development of large and complex investment projects exposed to high or medium risk through the supported CRVAs. The recent fund replenishment has expanded opportunities for strengthened support in enhancing climate resilience in ADB projects.

33. CCF enhances the enabling environment for climate investments. CCF is facilitating policy discussions, small-scale project preparation and pilot activities, regional capacity building, networking and knowledge-exchange events. Policy, regulatory and capacity development reforms arising from such activities help in building up the enabling environment for climate actions.

34. CCF facilitates access to global and regional funds. CCF is bridging the gap in DMC capacities and enhancing “readiness” to obtain and manage climate finance. CCF has successfully helped projects access funding from the Global Environment Facility and GCF. It has also helped establish financing facilities such as ACliFF and GFCF.

35. CCF will be a key mechanism to support the achievement of ADB’s institutional

climate finance target. The CCOF2030 outlines how ADB will achieve its 2020 target for climate finance and enhance its climate programs to meet the vast and evolving needs of DMCs through 2030. As the main internal financing source for climate-related activities, the CCF can support the

Box 8: ADB’s Climate Change Operational Framework 2017–2030

In July 2017, ADB approved its Climate Change Operational Framework 2017–2030 (CCOF2030), which will provide the broad direction and guidance for enhancing climate resilience and strengthening climate actions in ADB’s operations and business processes. It positions ADB to facilitate a regional shift toward a low greenhouse gas emission and climate-resilient development path. The CCOF2030 underscores ADB’s commitment to supporting its developing member countries (DMCs) in meeting their commitments under the Paris Agreement, including through the implementation of the nationally determined contributions (NDCs). In developing the CCOF2030, CCF allocated resources to direct charges which enabled the preparation of background analytical work and conduct of the consultation workshop with DMCs.a CCF financed the engagement of consultants who prepared two separate background papers, with the main findings integrated in preparation of the CCOF2030. The first paper provided an assessment on mitigation opportunities highlighting developments in low carbon options, including a regional perspective, the proposed analytical approach to climate change mitigation, and the role for ADB, while the second paper provided an analysis of opportunities to reduce GHG emissions and increase resilience from an urban, or city-based, perspective, and informing on areas for ADB support. CCF also financed the conduct of a two-day regional consultation workshop which was held on 6-7 March 2017 at the ADB Headquarters in Manila, Philippines. Fifty-eight government representatives from 36 DMCs participated at the workshop while internal and external experts served as resource persons. The workshop was instrumental in gathering feedback from the DMCs on the proposed directions on climate change, and was also helpful in better aligning ADB aspirations with the needs and priorities of DMCs on climate change adaptation and mitigation, which is key to enhancing country strategic programming and project planning and development, and scaling-up climate investments in DMCs. a The DCs are: (i) Regional: Analyzing Mitigation Opportunities in the Asia Pacific to Support the Development of Climate Change Strategic Framework 2017-2030 ($150,000 – clean energy development), and (ii) Regional: Regional Consultation Workshops on ADB’s Climate Change Strategic Framework 2017-2030 ($150,000 - adaptation and $225,000 – clean energy development). Note that the CCOF2030 was previously titled as Climate Change Strategic Framework 2017-2030).

12

mainstreaming of climate considerations in policies, strategies, plans and projects. CCF may enable more rigorous assessments and systematic integration of climate considerations in country programming processes to facilitate the identification of priority projects that are crucial to DMC climate action.

36. CCF will support country climate commitments. ADB’s forthcoming Strategy 2030 has identified tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability as one of seven operational priorities. Through the five operational principles of the CCOF2030, ADB is supporting DMCs to reach their climate commitments, particularly their NDCs, while accelerating low greenhouse gas emissions development, promoting climate change adaptation, integrating climate adaptation and disaster risk management, and linking climate action to the wider SDG agenda. In line with this, ADB is currently developing an NDC assistance program to enhance its financing and capacity building support towards the development and implementation of DMCs’ NDCs. In consideration of the NDCs and other climate strategies and priorities of the DMCs, more financing support for mitigation and adaptation activities will be required. The current NDCs present details regarding the climate actions and their estimated costs, as well as the need for external financial and technical support. Some NDCs are less detailed and indicate a need for support to define objectives and outline actions that will help the country meet its objectives and commitments. CCF could support activities to improve the clarity and detail of the NDCs, translate NDCs into climate investment plans, and support their implementation. CCF will help convert latent need for assistance into concrete projects and programs that ADB can support. In this sense, it will function as a catalyst for higher levels of ADB climate investment in line with its 2020 climate finance target. This will ensure that: (i) the design of CPSs are informed by NDC priorities; (ii) opportunities for ADB investment, TA, knowledge support, and leveraging of finance are maximized; and (iii) coordination and collaboration with other development partners is strengthened. 37. CCF will address anticipated increase in demand for support from ADB developing

member countries through prioritized activities. CCF will address the increased demand with the following priorities in each component:

a. Adaptation. CCF will continue to support the integration of climate change adaptation and disaster risk management in ADB operations. The growing awareness on the need to manage climate risks in large and complex projects has led to the enhanced institution-wide implementation of the climate risk management framework in ADB investment projects. In addition, in line with the broad direction for ADB adaptation efforts to evolve beyond climate proofing (“adaptation in projects”), CCF support to implement adaptation interventions (“adaptation through projects”) is set to increase in the coming years.

b. Clean Energy. ADB operational departments have submitted a pipeline of priority projects for financing from the clean energy funds with about $45.4 million worth of projects expected to request support for 2018.15 CCF resources will be used to support priority projects that aim to decrease the rate of climate change, taking into account the project’s transformational impact on climate change mitigation as well as scalability and replicability. It will prioritize support to: (i) energy efficiency in energy and non-energy sectors - with focus on demand-side interventions that reduce energy use at the point of final consumption across the residential, commercial, industrial, and public sectors; (ii) access to energy – such as output-based aid activities that improve access to energy

15 Clean energy funds include donor funds under CEFPF and resources from the CCF – clean energy development.

13

services that enhance quality of life; increased project portfolio in energy access particularly to provide access to safe, clean, and affordable modern energy, especially to the rural poor; (iii) renewable energy and smart grid – development of new technologies to lower barriers and facilitate rapid transfer and diffusion of renewable energy and mini grids; (iv) carbon capture and storage – promote efficient use of hydrocarbon fuel through cleaner technologies, including carbon capture and storage; (v) sustainable transport – low-carbon, safe, accessible and affordable transport systems and energy-efficient transport policies and projects; and (vi) private sector investments – channeling the necessary financing for private sector investment projects to be more acceptable from a risk-reward perspective.

c. REDD+ and Land Use. Support for regional knowledge exchanges, dialogues and partnerships on land use, land use change, and forestry and REDD+ will continue. CCF may help in fostering investment-driven knowledge generation on ecosystem services and carbon stocks, and innovative carbon financing mechanisms. Assistance in leveraging additional resources through support for project preparation and investments for the protection, maintenance and improvement of productive potential of land and forests will also be provided. There is also potential synergy for REDD+ and land use, land use change, and forestry intervention to support ecosystem-based adaptation, especially through watershed protection and erosion control measures.

d. Climate Finance Readiness – The TA will continue to support the development of conceptual proposals for new and scaled up climate finance operations including those that may qualify for GCF financing. Support for activities to operationalize ACliFF is also a priority to enable DMCs in accessing the fund.

38. CCF requires reliable sources of funds. While CCF may be replenished from ADB’s net income from Ordinary Capital Resources, given the anticipated demand for CCF support, ADB should more actively pursue sustained contributions to the CCF. ADB is increasingly looking at innovative financial structures to efficiently and effectively deploy concessional resources, enhance the use of market mechanisms, and engage the private sector on solutions for low carbon and climate-resilient infrastructure development, to scale up climate finance. One possibility is external contributions. In this context, ADB may also consider allowing more flexibility in the governing rules of CCF, which currently restricts donor contributions by accepting only untied grant contributions. Considering other emerging delivery modalities of financing would provide more opportunities for ADB to deploy additional funds into CCF from external sources.

Appendix 1

14

Climate Change Fund: Governance Structure

1. The Asian Development Bank (ADB) is working to make climate change an integral part of its entire future development work, cutting across multiple sectors and covering a wide range of focus/themes. The Climate Change Fund (CCF) addresses climate change through scaling up mitigation, adaptation, forest management, and land use management activities of developing member countries (DMCs). CCF supports the following specific types of activities:

a) Preparation of relevant strategies or action plans for ADB, its regional departments,

and DMCs; b) Investment in climate change mitigation or adaptation measures; c) Development of knowledge products and services related to climate change; and d) Facilitating knowledge exchange and development through regional conferences and

workshops.

2. In tapping CCF resources, user departments submit project proposals to the Facility Manager using the CCF application form and applicable ADB concept paper template. Clean Energy proposals are sent to the Sector Advisory Service Cluster, while proposals on REDD+ and Land Use and Adaptation are sent to the Environment and Safeguards Division and the Climate Change and Disaster Risk Management Division, respectively. Applications are reviewed in six batches and are due on 31 January, 31 March, 31 May, 31 July, 30 September, and 30 November. The Clean Energy Working Group (CEWG), for Clean Energy, and Adaptation and Land Use Working Group (ALUWG), for Adaptation and Reduced Emissions from Deforestation and Degradation and Improved Land Use Management (REDD+ and Land Use), review and endorse project proposals to the Climate Change Steering Committee (CCSC) based on CCF’s Implementation Guidelines. The CCSC authorizes allocations of resources to selected project proposals. Table A1 provides the governance structure for CCF.

Appendix 1

15

Table A1: Governance Structure

Party Responsibilities Financing Partners

Members: CCF contributors (i) Provide strategic direction to CCF (ii) Meet with the Asian Development Bank for

annual consultation (iii) Review progress and administration and annual

work program

Climate Change Steering Committee (CCSC) Chair: Director General, SDCC Secretariat: SDCD Members: Directors General of User Departments (UDs) and Chief Economist

(i) Provide strategic direction to CCF (ii) Director General, SDCC approves CCF policy

and procedures (iii) Approves allocation of funds to applications for

TAs and grant components of investments

Working Groups (CEWG and ALUWG) CEWG Chair: Chief, Energy Sector Group Co-Chair: Co-Chair, Energy Sector Group Secretariat: SDSC ALUWG Chair: Director, SDCD Secretariat: SDCD Members: Representatives from the operations departments (and ERCD for CEWG), as well as any additional technical specialists nominated by the Chair as members

(i) Review and make recommendations on mitigation and adaptation related activities to be supported from CCF

(ii) Recommend policy and procedures of CCF to CCSC

CCF Manager (SDCD) Manager/Coordinator: Overall: Director, SDSC or Designate Clean Energy/Mitigation: Chief Sector Officer, SDSC or Designate Adaptation and Land Use: Director, SDCD or Designate Assistance: A team of staff and consultants

(i) Serve as Secretariat and oversee CCF day-to-day operations

(ii) Oversee review process for applications (iii) Review applications for compliance with

Implementation Guidelines for use of funds (iv) Prepare Annual Work Program and progress

reports (v) Serve as focal point for CCF partners for

technical matters

Office of Cofinancing Operations (OCO) Contact: Designated by Head, OCO (i) Facilitate partner contributions to CCF

(ii) Communicate on financial issues among the partners

(iii) Lead negotiations with partners on financial and procedural agreements for CCF contributions and framework agreement

ADB = Asian Development Bank, ALUWG = Adaptation and Land Use Working Group, CCF = Climate Change Fund, CCSC = Climate Change Steering Committee CEWG = Clean Energy Working Group, ERCD = Economics, Research and Regional Cooperation Department, OCO = Office of Cofinancing Operations, SDCC = Sustainable Development and Climate Change Department, SDCD = Climate Change and Disaster Risk Management Division, SDES = Environment and Sector Division, SDSC = Sector Advisory Service Cluster, SDSC-ENE = Sector Advisory Service Cluster Energy Sector Group, TA = technical assistance. Source: Asian Development Bank.

Appendix 2

16

Projects Supported by the Climate Change Fund

Region Country Project Title Modality Date of Allocation

CCF Allocation

($ ‘000)

Associated Financing

($ ‘000)

Approval/ Implementation

Status ADAPTATION

Central and West Asia

Regional Economics of Climate Change in Central and West Asia

TA 30 Jun 2011

1,250 Ongoing

Training on Climate Change and Disaster Risk Management in Development Planning and Investment Projects in Central and West Asia

DC 4 Sep 2017

186 Ongoing

East Asia China, People’s Republic of

Managing the Water Resources of Boyang Lake

TA 30 Jun 2011

800 Completed

Policy Study on Government Public Expenditure in Agricultural Production

TA 20 May 2009

500 Completed

Qinghai Rural Water Resources Management Project

DC 17 Apr 2009 90 14,679 Ongoing

International Conference and Workshop on Mainstreaming Climate Change Adaptation: Pilot Cities Program in the PRC

DC 18 Aug 2017

65 Ongoing

Yunnan Lincang Cross-border Economic Cooperation Zone Project

DC 4 Dec 2017 64 Ongoing

Preparing Yangtze River Economic Belt Projects

TA 21 Nov 2016

600 Ongoing

Pacific Cook Islands Avatiu Port Development Project

GCI 17 Feb 2011

800 800 Completed

Palau Palau Adaptation Cluster - Design, Monitoring and Outreach

DC 11 Nov 2008

47 Ongoing

Regional Strengthening Capacity of Pacific DMCs to Respond to Climate Change (Phase 1)

TA 23 Sep 2009

1,365 Completed

Regional Regional Building Climate Risk Resiliency for Roadworks within the Sustainable

DC 26 Jun 2009 170 Ongoing

Appendix 2

17


CCF Allocation

($ ‘000)


($ ‘000)


Status Transport Initiative (STI) Climate Impacts and Responses: A Multimedia Campaign Project

TA 12 Dec 2008

450 Completed

Development and Dissemination of Climate-Resilient Rice Varieties for Water-Short Areas of South Asia and Southeast Asia

TA 30 Jun 2011 750 Completed

Managing Climate Impacts on Health in Water and Agriculture Sectors

DC 2 Jul 2009 100 Ongoing

Operational Support for the Implementation of CCF Adaptation Projects

DC 14 Jul 2009 250 Ongoing

Policy Options to Support Climate-Induced Migration

TA 20 May 2009

700 Completed

Preparing the Central Asia South Asia Regional Electricity Market Project

DC 25 Nov 2008

30 Ongoing

Supporting Climate Risk and Vulnerability Assessment (CRVA) Studies for Climate Resilient Investment Project Design

DC 12 Mar 2014

2,200 Ongoing

Training on Climate Change and Disaster Risk Management in Investments and Projects

DC 22 Jun 2016 200 Completed

Forum on Financial Instruments that Address the Risk of Loss and Damages Associated with Adverse Effects of Climate Change

DC 19 Aug 2016

175 Completed

5th Asia Pacific Adaptation Network Forum

DC 29 Aug 2016

252 Completed

V20 Regional Consultation on Climate and Disaster Risks

DC 23 Jan 2017 25 Ongoing

Appendix 2

18


CCF Allocation

($ ‘000)


($ ‘000)


Status Regional Consultations on ADB’s Climate Change Strategic Framework 2017–2030

DC 24 Jan 2017 225 Ongoing

Supporting Climate Risk and Vulnerability Assessment (CRVA) Studies to Support Climate Resilient Project Development

DC 26 Jun 2017 1,500 Ongoing

Supporting Adaptation Decision Making for Climate Resilient Investments

TA 26 Sep 2017

500 Ongoing

Consultation Workshop on Strengthening the Use of Climate Risk Information Across the ADB Investment Portfolio

DC 5 Oct 2017 110 Ongoing

South Asia Bangladesh Strengthening the Resilience of Water Sector in Khulna to Climate Change

TALL 28 Nov 2008

600 22,750 Completed

India Karnataka Integrated and Sustainable Water Resources Management

TALL 30 Jun 2011 100 72,400 Completed

Support for the National Action Plan on Climate Change

TALL 28 May 2009


Nepal High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project

TA 28 May 2009

730 3,320 Completed

Strengthening Capacity for Managing Climate Change and the Environment

TA 12 Dec 2008

700 Completed

Technical Support for Planning and Development of Pilot Program for Climate Resilience (PPCR) under the Climate Investment Funds

DC 8 Apr 2009 100 Ongoing

Sri Lanka Strengthening Capacity TA 28 May 700 Completed

Appendix 2

19


CCF Allocation

($ ‘000)


($ ‘000)


Status for Climate Change Adaptation

2009

Southeast Asia

Indonesia Institutional Strengthening for Integrated Water Resources Management in the 6 Ci’s River Basin

TALL 20 May 2009

1,700 Completed

Lao People's Democratic Republic

Enabling Implementation of the Lao PDR National Strategy and Action Plan on Climate Change

DC 22 May 2009

98 Ongoing

Philippines Climate Resilience and Green Growth in the Upper Marikina River Basin

TALL 7 Mar 2012 450 Completed

Viet Nam Climate Change Impact and Adaptation Study in the Mekong Delta

TA 25 Sep 2009

500 4,500 Completed

Support to Develop the Viet Nam Climate Change Impact, Mitigation and Adaptation in Mekong Delta Project

DC 20 Apr 2009 30 Ongoing

Subtotal 19,861 168,449 CLEAN ENERGYa

Central and West Asia

Azerbaijan Baku Sustainable Urban Transport Investment Program - Supplementary Financing

TA 19 Nov 2014

730 Completed

East Asia China, People's Republic of

Advancing Shanghai Carbon Market through Emissions Trading Scheme

TA 7 Sep 2012 72 Completed

Capacity Building for Energy Efficiency Implementation (Guangdong Energy Efficiency and Environment Improvement Investment Program)

TALL 8 Sep 2008 1,200 60,000 Completed

China Clean Development Mechanism Fund Capacity Development


Appendix 2

20


CCF Allocation

($ ‘000)


($ ‘000)


Status Concentrating Solar Thermal Power Development

TA 24 Sep 2009

1,000 Completed

Developing a Low-Carbon Economy in Yunnan Province

TA 24 Sep 2009

400 Completed

Developing Pathways to Low-Carbon Transport in Ningxia Hui Autonomous Region

TA 12 Sep 2014

500 Completed

Developing Tianjin Emission Trading System (formerly Supporting Domestic Carbon Market Development in the People’s Republic of China)

TA 30 May 2011

550 Completed

Energy Efficiency Improvements in Inner Mongolia Autonomous Region (Inner Mongolia Autonomous Region Environment Improvement Project)

TALL 8 Sep 2008 500 32,545 Completed

Strategic Analysis and Recommendations for Achieving the 2020 Low-Carbon Goal

TA 18 Nov 2013

150 Completed

Tianjin Integrated Gasification Combined Cycle Power Plant Project

GCI 8 Sep 2008 5,000 36,450 Completed

Urban Transport Strategy to Combat Climate Change

DC 75 Completed

Utilization of Foreign Capital to Promote Energy Conservation and Energy-Efficient Power Generation


Wastewater Treatment and Reuse Project

TALL 30 Aug 2013


Strategic Policy Study on Collaborative Control of Air Pollution and Carbon

TA 15 Sep 2017

350 Ongoing

Appendix 2

21


CCF Allocation

($ ‘000)


($ ‘000)


Status Emissions in Transport Sector

Mongolia Mongolia's Strategy for Northeast Asia Power System Interconnection

TA 17 Jul 2015 750 1,000 Ongoing

Regional Regional Carbon Forum Asia 2008 DC 8 Oct 2008 150 Completed Demonstration of an Assisted Broker Model for Transfer of Low Carbon Technologies to Asia and Pacific

TA 24 Mar 2011

1,900 Ongoing

Enhancing Climate Change Support for Private Sector

DC 4 Nov 2013 75 Ongoing

Expanding the Implementation of the Energy Efficiency Initiative in DMC

TA 8 Sep 2008 3,000 Completed

Implementation of Asian City Transport - Promoting Sustainable Urban Transport in Asia Project

TA 12 Jan 2009 2,800 Completed

New Approaches to Implement Sustainable Low Carbon Transport in Asia and the Pacific Region (formerly Regional: Promoting Sustainable Low Carbon Transport in Asia and the Pacific) - Subproject B under Regional: Implementation of Sustainable Transport in Asia and the Pacific Region

TA 17 Mar 2011

1,900 Completed

The Climate Public-Private Partnership Fund (CP3)

DC 10 Dec 2010

150 Completed

Preparing and Tracking Private Sector Clean Energy Investments in DMCs

DC 4 Jan 2011 120 Completed

Promoting Socially TA 14 May 398 Completed

Appendix 2

22


CCF Allocation

($ ‘000)


($ ‘000)


Status Sustainable Transport through Improving Nonmotorized Transport (Subproject 4) [formerly Regional: Ortigas Greenways: Demonstration Initiative for Low-Carbon Mobility (under subproject B of Transport Cluster TA 8189)]

2013

Promotion of Investment in Climate Technology Products through Venture Capital Funds

TA 24 Mar 2011

950 Ongoing

Support for Clean Energy Development and Financing

TA 12 Sep 2014

225 Completed

Sustainable Hydropower in Asia Publication

TA 14 May 2013

113 Completed

Journalist Knowledge Sharing Program on Clean Energy Development

DC 7 Jan 2016 75 Completed

Promoting Sustainable Energy for All in Asia and the Pacific – Additional Financing

TA 13 Jan 2016 1,100 Ongoing

Analyzing Mitigation Opportunities in the Asia Pacific to Support the Development of Climate Strategic Framework 2030

DC 4 May 2016 150 Ongoing

Regional Consultations on ADB’s Climate Change Strategic Framework 2017–2030

DC 6 Feb 2017 150 Ongoing

South Asia Bangladesh Capacity Development for Infrastructure Development Co. Ltd. (Public-Private Infrastructure Development Facility)


Nepal Compact Fluorescent GCI 5 May 2009 300 1,480 Completed

Appendix 2

23


CCF Allocation

($ ‘000)


($ ‘000)


Status Lighting and Solar-Powered Street Lighting (Energy Access and Efficiency Improvement Project)

Sri Lanka Clean Energy and Access Improvement Project


Southeast Asia

Indonesia Climate Change Mitigation in the 6 Ci’s River Basin Territory (Supplementary to Institutional Strengthening for Integrated Water Resources Management in the 6 Ci's River Basin Territory)

TALL 5 May 2009 850 Completed

Lao People's Democratic Republic

Recruitment of Climate Change Expert (National Consultant in the Lao PDR)

DC 1 Sep 2008 75 Completed

Viet Nam Capacity Building for Renewable Energy Development (Renewable Energy Development and Network Expansion and Rehabilitation for Remote Communes Sector Project)

TALL 1 Oct 2008 1,600 61,000 Ongoing

Subtotal 34,508 265,583 REDD+ AND LAND USE

East Asia China, People's Republic of

Jiangxi Sustainable Forest Ecosystem Development Project

DC 4 Dec 2008 86 Ongoing

Jiangxi Sustainable Forest Ecosystem Development Project

GCI 23 July 2009

1,000 40,000 Ongoing

Regional Regional Promoting Ecosystem Services and Forest Carbon Financing in Asia and the Pacific

TA 6 Dec 2013 800 4,787 Completed

Workshop and Clinic on Ecosystem-based

DC 5 Sep 2017 153 Ongoing

Appendix 2

24


CCF Allocation

($ ‘000)


($ ‘000)


Status Adaptation and Nature-based Approaches to Climate and Disaster Risk Management Protecting and Investing in Natural Capital in Asia and the Pacific (formerly Regional: Investing in Natural Capital in Asia and the Pacific)

TA 16 Nov 2017

955 2,735 Ongoing

Southeast Asia

Indonesia Recruitment of REDD+ Financing Advisor

DC 22 Jun 2011 66 18,000 Ongoing

Sustainable Forest and Biodiversity and Management in Borneo

TA 23 Jul 2009 1,250 7,400 Ongoing

Philippines Integrated Natural Resources and Environmental Management Sector

DC 11 May 2009

88 Ongoing

Integrated Natural Resources and Environmental Management Project

GCI 23 Jul 2009 1,410 122,500 Ongoing

Regional - GMS

Core Environment Program and Biodiversity Conservation Corridors Initiative in GMS

TA 23 Jul 2009 1,000 98,686 Completed

Subtotal 6,808 293,208 CLIMATE FINANCE READINESS

Regional Regional Enhancing Readiness of ADB DMCs for Scaled Up Climate Finance

TA 4 Dec 2013 238 Ongoing

Subtotal 238 GRAND TOTAL 61,416 727,240 ADB = Asian Development Bank, CCF = Climate Change Fund, DC = direct charge, DMC = developing member country, GCI = grant component of investments, GMS = Greater Mekong Subregion, REDD+ = Reduced Emissions from Deforestation and Degradation, TA = technical assistance, TALL = technical assistance linked to loan, V20 = Vulnerable 20. a In 2016, the project Regional: Innovative Financing of Sustainable Transport through Market Mechanisms (Subproject F of cluster

regional capacity development technical assistance, Implementation of Sustainable Transport in Asia and the Pacific) with an authorized allocation of $150,000 was withdrawn from the CCF portfolio, due to prioritization of other technical assistance efforts.

Source: Asian Development Bank estimates.

Appendix 3

25

Climate Change Fund Allocations by Component and Modality

As of 31 December 2017 ($ million, exclusive of fees)

CCF= Climate Change Fund, DC = direct charge, GCI = grant component of investment, REDD+ = Reduced Emissions from Deforestation and Degradation, TA = technical assistance, TALL = technical assistance linked to loan. Note: Includes project allocations that have received authorization from the Climate Change Steering Committee. Totals may not add up due to rounding. Source: Asian Development Bank estimates.

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Adaptation Clean Energy REDD+ and Land Use Climate FinanceReadiness

$ milli

on

GCI TALL TA DC

Amount ($ million)

No. of Projects

Amount ($ million)

No. of Projects

Amount ($ million)

No. of Projects

Amount ($ million)

No. of Projects

Amount ($ million)

No. of Projects

Adaptation 0.8 1 3.6 5 9.5 13 5.9 20 19.9 39 Clean Energy 10.8 4 4.4 5 18.3 20 1.0 9 34.5 38

GCI:TA RatioREDD+ and Land Use 2.4 2 - - 4.0 4 0.4 4 6.8 10 Climate Finance Readiness - - - - 0.2 1 - - 0.2 1 Total 14.0 7 8.0 10 32.1 38 7.3 33 61.4 88

GCI:TA Ratio

TotalModality

DCGCI TALL TA

100%

44% 56% 100%

36% 64%

Item

Appendix 4

26

Climate Change Fund Allocations by Component and Region

As of 31 December 2017 ($ million, exclusive of fees)

CCF = Climate Change Fund, REDD+ = Reduced Emissions from Deforestation and Degradation, REG = regional. Source: Asian Development Bank estimates.

.

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Adaptation Clean Energy REDD+ and Land Use Climate Finance Readiness

$ m

illio

n

Central and West Asia East Asia Pacific South Asia Southeast Asia REG

Appendix 5

27

Climate Change Fund: Statement of Expenditures

ExpectedTA/Grant/ TA/Grant Cumulative Cumulative Outstanding TA/Grant Unutilized Financial

TA/Grant Title Application Date of Direct Charge Amount up to Transactions up to Commitments Completion Commitment CompletionApproved Application No./Type 4/ Approval Amount 1/ Received 31/12/16 01/01-31/12/17 31/12/17 Date (Savings) Date

(A) (B) (C) (D) (E) = (C) + (D) (F) = (A) - (E) (G) (H) = (A) - (E) (I)

CLEAN ENERGYAPPROVED and EFFECTIVE PROJECTS

Grant Component of Investment (GCI):

BangladeshPublic-Private Infrastructure Development Facility G0253 17-May-11 1,300,000.00 1,300,000.00 - 1,300,000.00 0.00 1-Oct-15

China, People's Republic ofTianjin Integrated Gasif ication Combined Cycle Pow er Plant Project G0196 08-Feb-10 5,000,000.00 4,467,371.05 400,575.60 4,867,946.65 132,053.35 19-Jul-17

NepalEnergy Access and Eff iciency Improvement Project - CCF G0182 27-Nov-09 300,000.00 24,268.02 - 24,268.02 275,731.98 9-Nov-16

Sri LankaClean Energy and Access Improvement Project G0149 14-Apr-09 4,200,000.00 3,826,174.89 - 3,826,174.89 373,825.11 20-Aug-15

Sub Total 10,800,000.00 - 9,617,813.96 400,575.60 10,018,389.56 - 781,610.44

Technical Assistance Linked to Loan (TALL):

China, People's Republic ofCapacity Building for Energy Eff iciency G0109 04-Jun-08 1,200,000.00 1,108,682.85 - 1,108,682.85 91,317.15 27-Apr-15Energy Eff iciency Improvements in Inner Mongolia Autonomous Region 7443/CD 14-Dec-09 500,000.00 402,255.08 - 402,255.08 97,744.92 31-Mar-13Wastew ater Treatment and Reuse Project 8457/CD 20-Sep-13 250,000.00 226,823.53 - 226,823.53 23,176.47 25-Aug-17

IndonesiaInstitutional Strengthening for Integrated Water Resources Management in the 6 CI's River Basin 7189/AO 4-Dec-08 850,000.00 749,703.64 - 749,703.64 100,296.36 22-Jul-16

Viet NamCapacity Building for Renew able Energy Development 7262/CD 30-Mar-09 1,600,000.00 1,589,081.26 7,433.84 1,596,515.10 3,484.90 31-Dec-17

Sub Total 4,400,000.00 - 4,076,546.36 7,433.84 4,083,980.20 3,484.90 312,534.90

Project Expenditures/Direct Charges 2/ Completed TAs/Grants/DCs

ASIAN DEVELOPMENT BANKStatement of TA/Grant Expenditures and Direct Charges

Climate Change FundAs of 31 December 2017

(Expressed in US Dollars)

Appendix 5

28




CLEAN ENERGYAPPROVED and EFFECTIVE PROJECTS

Technical Assistance (TA):

AzerbaijanBaku Sustainable Urban Transport Investment Program 8152/PP 6-Sep-12 730,000.00 699,012.78 - 699,012.78 30,987.22 30-Apr-16

China, People's Republic of

Utilization of Foreign Capital to Promote Energy Conservation and Energy-Eff icient Pow er Generation 7202/AO 11-Dec-08 900,000.00 827,691.53 - 827,691.53 72,308.47 18-May-12China Clean Development Mechanism Fund Capacity Development 7212/AO 11-Dec-08 500,000.00 475,119.26 - 475,119.26 24,880.74 29-Feb-12Concentrating Solar Thermal Pow er Development 7402/CD 03-Dec-09 1,000,000.00 934,640.04 - 934,640.04 65,359.96 20-Dec-12Developing a Low -Carbon Economy in Yunnan Province 7442/CD 14-Dec-09 400,000.00 395,477.45 - 395,477.45 4,522.55 29-Oct-12Developing Tianjin Emission Trading System 7956/CD 09-Dec-11 550,000.00 530,299.66 - 530,299.66 19,700.34 1-Jun-14Advancing Shanghai Carbon Market through Emissions Trading Scheme 8178/PA 2-Oct-12 72,308.00 72,308.00 - 72,308.00 0.00 1-Apr-15Strategic Analysis and Recommendations for Achieving the 2020 Low -Carbon Goal 8563/PA 13-Dec-13 150,000.00 150,000.00 - 150,000.00 - 29-Nov-16Developing Pathw ays to Low -Carbon Transport in Ningxia Hui Autonomous Region 8775/PA 3-Dec-14 500,000.00 383,568.98 116,431.02 500,000.00 - 20-Apr-17Strategic Policy Study on Collaborative Control of Air Pollution and Carbon Emissions in the Transport Sector 9393/PA 28-Sep-17 350,000.00 - - - 350,000.00 30-Sep-19

MongoliaStrategy for Northeast Asia Pow er System Interconnection 9001/PA 27-Nov-15 750,000.00 1,300.90 151,669.58 152,970.48 597,029.52 15-Aug-19

Regional

Expanding the Implementation of the Energy Eff iciency Initiative in DMC 6501/REG 10-Nov-08 3,000,000.00 2,694,597.09 - 2,694,597.09 305,402.91 21-Dec-15Implementation of Asian City Transport - Promoting SUT in Asia Project 7243/PP 19-Feb-09 2,800,000.00 1,960,883.26 - 1,960,883.26 839,116.74 16-Nov-12Promotion of Investment in Climate Technology Products through Venture Capital Funds 8018/PA 20-Dec-11 950,000.00 309,811.43 442,920.51 752,731.94 197,268.06 31-Dec-18Demonstration of an Assisted Broker Model for Transfer of Low Carbon Technologies to Asia and Pacif ic 8105/CD 15-Jun-12 1,900,000.00 - 217,117.84 217,117.84 1,682,882.16 31-Dec-18Implementation of Sustainable Transport in Asia and the Pacif ic - Promoting Socially Sustainable Transport through Improving Nonmotorized Transport (Subproject 4) 8168/CD 19-Sep-12 398,000.00 56,911.69 96,596.17 153,507.86 244,492.14 16-Aug-17Implementation of Sustainable Transport in Asia and the Pacif ic 8189/CD 12-Oct-12 1,900,000.00 1,687,140.95 44,997.33 1,732,138.28 167,861.72 30-Jun-17Sustainable Hydropow er in Asia Publication 8382/CD 28-May-13 112,500.00 87,926.53 - 87,926.53 24,573.47 21-Dec-15Support for Clean Energy Financing Partnership Facility Administration 8766/CD 19-Nov-14 225,000.00 220,366.84 - 220,366.84 4,633.16 26-Aug-16Promoting Sustainable Energy for All in Asia and the Pacif ic - Sustainable Energy for All Regional Hub for Asia and the Pacif ic 8953/CD 10-Sep-15 1,100,000.00 90,449.28 209,247.07 299,696.35 800,303.65 31-Dec-20

Sub Total 18,287,808.00 - 11,577,505.67 1,278,979.52 12,856,485.19 3,627,483.39 1,803,839.42





Appendix 5

29




CLEAN ENERGY

APPROVED and EFFECTIVE PROJECTS

Direct Charge (DC):

Recruitment of Climate Change Expert (National Consultant in LAO) CCFCDC 00007 01-Sep-08 75,000.00 35,111.55 - 35,111.55 39,888.45 19-Sep-11

Urban Transport Strategy to Combat Climate Change CCFCDC 00008 03-Oct-08 75,000.00 73,769.32 - 73,769.32 1,230.68 21-Dec-12

Carbon Forum Asia 2008 CCFCDC 00009 08-Oct-08 150,000.00 109,599.46 - 109,599.46 40,400.54 21-Apr-10

The Climate Public-Private Partnership Fund (CP3) CCFCDC 00024 10-Dec-10 150,000.00 130,843.59 - 130,843.59 19,156.41 07-Dec-15Preparing and Tracking Private Sector Clean Energy Investments in DMCs

CCFCDC 00025 04-Jan-11 120,000.00 46,770.84 - 46,770.84 73,229.16 03-Oct-13

Enhancing Climate Change Support for Private Sector CCFCDC 00051 04-Nov-13 75,000.00 63,192.00 - 63,192.00 11,808.00

Journalist's Know ledge-Sharing Program on Clean Energy Development

CCFCDC 00059 05-Jan-16 75,000.00 40,120.95 - 40,120.95 34,879.05 11-Sep-17

Analyzing Mitigation Opportunities in the Asia Pacif ic to Support the Development of the Climate Change Strategic Framew ork 2030 CCFCDC 00061 04-May-16 150,000.00 18,758.45 69,018.41 87,776.86 62,223.14

Regional Consultations on ADB's Climate Change Strategic Framew ork 2017-2030

CCFCDC 00070 06-Feb-17 150,000.00 - 23,925.58 23,925.58 126,074.42

Sub Total 1,020,000.00 - 518,166.16 92,943.99 611,110.15 200,105.56 208,784.29

TOTAL CLEAN ENERGY 34,507,808.00 - 25,790,032.15 1,779,932.95 27,569,965.10 3,831,073.85 3,106,769.05

TOTAL CLEAN ENERGY SERIES 34,507,808.00 - 25,790,032.15 1,779,932.95 27,569,965.10 3,831,073.85 3,106,769.05

ADAPTATION

APPROVED and EFFECTIVE PROJECTS


Cook Islands

Avatiu Port Development Project G0249 24-Mar-11 800,000.00 800,000.00 - 800,000.00 0.00 05-Jul-13

Sub Total 800,000.00 800,000.00 - 800,000.00 - 0.00





Appendix 5

30



ADAPTATIONAPPROVED and EFFECTIVE PROJECTS

Technical Assistance Linked to Loan (TALL):

BangladeshStrengthening the Resilience of Water Sector in Khulna to Climate Change 7197/AO 10-Dec-08 600,000.00 496,554.93 - 496,554.93 103,445.07 31-Aug-11

IndiaSupport for the National Action Plan on Climate Change 7417/PA 07-Dec-09 750,000.00 606,951.59 - 606,951.59 143,048.41 31-Dec-11Karnataka Integrated and Sustainable Water Resources Mgt 7954/PP 09-Dec-11 100,000.00 87,314.88 - 87,314.88 12,685.12 29-Jul-14

IndonesiaInstitutional Strengthening for Integrated Water Resources Management in the 6 CI's River Basin 7189/AO 4-Dec-08 1,700,000.00 1,499,407.28 - 1,499,407.28 200,592.72 22-Jul-16

PhilippinesClimate Resilience & Green Grow th Upper Marikina River Basin 8111/CD 16-Jul-12 450,000.00 391,252.82 - 391,252.82 58,747.18 18-May-16

Sub Total 3,600,000.00 3,081,481.50 - 3,081,481.50 - 518,518.50


China, People's Republic ofPolicy Study on Government Public Expenditure in Agricultural Production 7306/PA 06-Jul-09 500,000.00 423,306.30 - 423,306.30 76,693.70 13-Nov-13Managing the Water Resources of Boyang Lake 7860/PA 02-Sep-11 800,000.00 800,000.00 - 800,000.00 0.00 31-Mar-15Preparing Yangtze River Economic Belt Projects 9311/PP 19-Apr-17 600,000.00 - 16,115.61 16,115.61 583,884.39 31-Dec-19

NepalStrengthening Capacity for Managing Climate Change and the Environment 7173/AO 18-Nov-08 700,000.00 568,226.01 - 568,226.01 131,773.99 27-Sep-13High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project 7298/PP 08-Jun-09 730,000.00 483,657.84 - 483,657.84 246,342.16 30-Jun-14

RegionalClimate Impacts and Responses: A Multimedia Campaign Project 6524/CD 19-Jan-09 450,000.00 378,792.50 - 378,792.50 71,207.50 30-Apr-13Strengthening Capacity of Pacif ic DMC to Respond to Climate Change (PH 1) 7394/CD 23-Nov-09 1,365,000.00 1,295,725.14 - 1,295,725.14 69,274.86 14-Mar-14Policy Options to Support Climate-Induced Migration 7408/RD 8-Dec-09 700,000.00 537,276.22 - 537,276.22 162,723.78 23-Sep-14Economics of Climate Change in Central and West Asia 8119/RD 18-Jul-12 1,250,000.00 319,116.79 630,989.97 950,106.76 299,893.24 30-Jun-17Development and Dissemination of Climate-Resilient Rice Varieties for Water-Short Areas of South Asia and Southeast Asia 8441/RD 5-Sep-13 750,000.00 280,390.62 464,058.79 744,449.41 5,550.59 30-Jun-17Supporting Adaptation Decision Making 9414/CD 2-Nov-17 500,000.00 - - - 500,000.00 31-Dec-19





Appendix 5

31



ADAPTATIONAPPROVED and EFFECTIVE PROJECTSTechnical Assistance (TA):

RegionalClimate Impacts and Responses: A Multimedia Campaign Project 6524/CD 19-Jan-09 450,000.00 378,792.50 - 378,792.50 71,207.50 30-Apr-13Strengthening Capacity of Pacif ic DMC to Respond to Climate Change (PH 1) 7394/CD 23-Nov-09 1,365,000.00 1,295,725.14 - 1,295,725.14 69,274.86 14-Mar-14Policy Options to Support Climate-Induced Migration 7408/RD 8-Dec-09 700,000.00 537,276.22 - 537,276.22 162,723.78 23-Sep-14Economics of Climate Change in Central and West Asia 8119/RD 18-Jul-12 1,250,000.00 319,116.79 630,989.97 950,106.76 299,893.24 30-Jun-17Development and Dissemination of Climate-Resilient Rice Varieties for Water-Short Areas of South Asia and Southeast Asia 8441/RD 5-Sep-13 750,000.00 280,390.62 464,058.79 744,449.41 5,550.59 30-Jun-17Supporting Adaptation Decision Making 9414/CD 2-Nov-17 500,000.00 - - - 500,000.00 31-Dec-19

Sri LankaStrengthening Capacity for Climate Change Adaptation 7326/CD 5-Aug-09 700,000.00 499,755.68 - 499,755.68 200,244.32 31-May-11

Viet NamClimate Change Impact and Adaptation Study in the Mekong Delta 7377/CD 11-Nov-09 500,000.00 454,833.59 - 454,833.59 45,166.41 30-Jun-14

Sub Total 9,545,000.00 6,041,080.69 1,111,164.37 7,152,245.06 1,383,777.63 1,008,977.31

Direct Charge:

Palau Adaptation Cluster - Design, Monitoring and Outreach CCFADC 00001 11-Nov-08 47,000.00 - - - 47,000.00

Preparing the Central Asia South Asia Regional Electricity Market Project CCFADC 00004 25-Nov-08 30,000.00 - - - 30,000.00

Technical Support for Planning and Development of Pilot Program for Climate Resilience (PPCR) under the Climate Investment Fund CCFADC 00005 08-Apr-09 100,000.00 84,197.59 - 84,197.59 15,802.41





Appendix 5

32




Direct Charge:

Qinghai Rural Water Resources Management Project CCFADC 00006 17-Apr-09 90,000.00 73,918.05 - 73,918.05 16,081.95

Support to Develop the VIE Climate Change Impact, Mitigation and Adaptation in Mekong Delta Project CCFADC 00007 20-Apr-09 30,000.00 22,674.74 - 22,674.74 7,325.26

Enabling Implementation of Lao PDR National Strategy and Action Plan on Climate Change CCFADC 00009 22-May-09 98,000.00 57,955.63 - 57,955.63 40,044.37

Building Climate Risk Resiliency for Roadw orks w ithin the Sustable Transport Initiative (STI) CCFADC 00010 26-Jun-09 169,500.00 115,247.48 - 115,247.48 54,252.52

Managing Climate Impacts on Health in Water and Agriculture Sectors CCFADC 00011 02-Jul-09 100,000.00 71,545.78 - 71,545.78 28,454.22

Operational Support for the Implementation of CCF Adaptation Projects CCFADC 00012 14-Jul-09 250,000.00 238,960.44 - 238,960.44 11,039.56

Supporting Climate Risk and Vulnerability Assessment (CRVA) studies for Climate Resilient Investment Project Design CCFADC 00014 21-Mar-14 2,060,000.00 1,145,496.81 526,621.69 1,672,118.50 387,881.50 TA 7965/PRC: Jiangxi Ji'an Sustainable Urban Transport (Supplementary) CCFADC 00014 21-Mar-14 35,000.00 14,460.72 - 14,460.72 20,539.28 19-Jan-15TA 8149-PRC: Yunnan Pu'er Regional Integrated Road Netw ork Development (Supplementary) CCFADC 00014 21-Mar-14 35,000.00 20,638.23 - 20,638.23 14,361.77 27-Feb-15TA 9072-PRC: Guizhou High Eff iciency Water Utilization Demonstration in Rocky Desertif ication Area CCFADC 00014 29-Jan-16 70,000.00 66,750.00 3,250.00 70,000.00 0.00 0.00 02-Nov-17

Training on Climate Change and Disaster Risk Management in Investments and Projects CCFADC 00015 22-Jun-16 200,000.00 26,954.38 10,282.79 37,237.17 162,762.83 30-Jun-17

Regional Consultation on ADB's Climate Change Framew ork 2017-2030 (CCSF 2030) CCFADC 00016 24-Jan-17 225,000.00 - 97,527.84 97,527.84 127,472.16

V20 Regional Consultation on Climate and Disaster Risks CCFADC 00017 23-Jan-17 24,643.50 - 20,220.80 20,220.80 4,422.70

Forum on Financial Instruments that Address the Risks of Loss and Damaged associated w ith the Adverse Effects of Climate Change (L&D Forum) CCFADC 00019 19-Aug-16 175,450.80 - 75,850.20 75,850.20 99,600.60 15-Jul-17

International Conference and Workshop on Mainstreaming Climate Change Adaptation: Pilot Cities Program in PRC CCFADC 00018 17-Aug-17 65,000.00 - 13.20 13.20 64,986.80





Appendix 5

33

Note: MYA Preparing the Resilient Communities Development Project is a climate vulnerability and risk assessment approved as a direct charge by the Adaptation and Land Use Working Group. This progress report counts allocations approved by the working groups or the Climate Change Steering Committee and not necessarily approved by ADB yet.





Direct Charge:

5th Asia Pacif ic Climate Change Adaptation Forum (Adapting and Living below 2°C: Bridging the Gaps in Policy and Practice) CCFADC 00020 29-Aug-16 251,596.40 79,468.75 15,235.20 94,703.95 156,892.45 31-Jul-17

Supporting Climate Risk and Vulnerability Assessment (CRVA) Studies to Support Resilient Investment Project CCFADC 00021 26-Jun-17 1,500,000.00 - 259,462.49 259,462.49 1,240,537.51

Training on Climate Change and Disaster Risk Management in Development Planning and Investment Projects in Central and West Asia CCFADC 00022 4-Sep-17 186,000.00 - 53,350.89 53,350.89 132,649.11

Consultation and Training on Strenghtening the Use of Climate Risk Information across the ADB Investment Portfolio CCFADC 00024 5-Oct-17 110,000.00 - 17,747.17 17,747.17 92,252.83

Consultation and Training on Strenghtening the Use of Climate Risk Information across the ADB Investment Portfolio CCFADC 00025 4-Dec-17 63,910.00 - - - 63,910.00

Sub Total 5,916,100.70 2,018,268.60 1,131,597.98 3,149,866.58 2,312,077.19 454,156.93

TOTAL ADAPTATION 19,861,100.70 11,940,830.79 2,242,762.35 14,183,593.14 3,695,854.82 1,981,652.74

Add: Approved But Not Yet Effective ProjectsDirect Charge:TA9413/MYA Preparing the Resilient Communities CCFADC 00021 26-Oct-17 200,000.00

Sub Total 200,000.00

TOTAL APPROVED BUT NOT YET EFFECTIVE PROJECTS 200,000.00

TOTAL ADAPTATION SERIES 20,061,100.70 - 11,940,830.79 2,242,762.35 14,183,593.14 3,695,854.82 1,981,652.74





Appendix 5

34




LAND USEAPPROVED and EFFECTIVE PROJECTS


China, People's Republic ofJiangxi Sustainable Forest Ecosystem Development Project G0229 09-Nov-10 1,000,000.00 281,514.44 565,011.43 846,525.87 153,474.13 31-Oct-17

PhilippinesIntegrated Natural Resources and Environmental Management Project G0324 3-Dec-12 1,410,000.00 - - - 1,410,000.00 31-Dec-20

2,410,000.00 281,514.44 565,011.43 846,525.87 1,563,474.13 -


IndonesiaSustainable Forest and Biodiversity and Management in Borneo 8331/CD 26-Feb-13 1,250,000.00 408,166.14 363,614.53 771,780.67 478,219.33 28-Feb-18

RegionalCore Environment Program and Biodiversity Conservation Corridors Initiative in GMS 6289/REG 16-Dec-05 1,000,000.00 998,957.50 - 998,957.50 1,042.50 31-Jan-16Promoting Ecosystem Services and Forest Carbon Financing in Asia and the Pacif ic 8564/CD 6-Dec-13 800,000.00 450,651.51 341,127.00 791,778.51 8,221.49 31-Aug-17Protecting & Investing in Natural Capital 9461/CD 13-Dec-17 955,000.00 - - - 955,000.00 31-Dec-20

Sub Total 4,005,000.00 1,857,775.15 704,741.53 2,562,516.68 1,433,219.33 9,263.99

Direct Charge:

Jiangxi Sustainable Forest Ecosystem Development Project CCFLDC 00002 04-Dec-08 86,000.00 65,566.19 - 65,566.19 20,433.81

Integrated Natural Resources and Environmental Management Sector CCFLDC 00008 11-May-09 88,000.00 78,296.94 - 78,296.94 9,703.06

Recruitment of REDD+ Financing Advisor CCFLDC 00013 22-Jun-11 66,000.00 47,344.36 - 47,344.36 18,655.64

Workshop and Clinic on Ecosystem-based Adaptation and Nature-based Approaches to Climate and Disaster Risk Management CCFLDC 00023 5-Sep-17 153,000.00 - 30,830.25 30,830.25 122,169.75

Sub Total 393,000.00 191,207.49 30,830.25 222,037.74 170,962.26 -

TOTAL LAND USE 6,808,000.00 2,330,497.08 1,300,583.21 3,631,080.29 3,167,655.72 9,263.99





Appendix 5

35

Source: Asian Development Bank estimates.




CLIMATE FINANCE READINESSAPPROVED and EFFECTIVE PROJECTS


RegionalEnhancing Readiness of ADB Developing Member Countries for Scaled Up Climate Finance 8606/CD 20-Dec-13 237,500.00 23,326.83 42,919.88 66,246.71 171,253.29 19-Dec-18

TOTAL CLIMATE FINANCE READINESS 237,500.00 23,326.83 42,919.88 66,246.71 171,253.29 -

TOTAL CCF APPROVED AND EFFECTIVE 61,414,408.70 74,000,000.00 3/ 40,084,686.85 5,366,198.39 45,450,885.24 10,865,837.68 5,097,685.78

GRAND TOTAL 61,414,408.70

Contributions received:ADB USD 74,000,000.00 3/

1/ US$ equivalent of TA/Grant at time of TA/Grant approval.2/ Actual disbursements.3/ Represents actual US$ equivalent of contributions received.4/ TA Types: PP = Project Preparatory; AO = Advisory; CD = Capacity Development; PA = Policy and Advisory; RD = Research and Development; REG = Regional ; CCFCDC = Clean Energy Direct Charge; CCFA = Adaptation Direct Charge; CCFL= Land Use Direct Charge





Appendix 6

36

Completed Climate Change Fund Supported Projects1

Adaptation Component 1. Cook Islands: Avatiu Port Development Project - Grant Component of Investment;

$800,000; Completed in 2013 The Climate Change Fund (CCF) provided grant financing to support a project which aimed to address existing deficiencies and constraints and bring the Avatiu port and harbor up to acceptable international maritime safety standards by reconstructing the quay and part of the wharf area, and by increasing the harbor and port’s capacity for current vessels, and larger vessels that were expected in the future. The infrastructure changes implemented by the project have resulted in a more open layout for the wharf, improving container handling efficiency. The project also climate-proofed the wharf by replacing the existing structure—which was extremely vulnerable to wave action and forces—with one that is fully resistant. Additionally, to address possible sea level rise, the wharf was designed so it could be raised along with the container yard, while the main berth has been raised and may be raised further if necessary. Similarly, the anchorage points for the fendering system were designed to allow the fenders to be set at a higher level if required. 2. Bangladesh: Strengthening the Resilience of the Water Sector in Khulna to Climate

Change - Technical Assistance Linked to Loan; $600,000; Completed in 2011 CCF financed the policy and advisory technical assistance (PATA), which supported the development of two ADB water sector investment projects planned in Bangladesh: the City Region Development Project that includes Khulna’s drainage system improvement, and the Khulna Water Supply Project that includes the development of a surface water supply system. The PATA aimed at strengthened climate resilience of the water sector in Khulna. It assessed the impacts of climate change and identified adaptation options which are essential to climate-proof the proposed infrastructure and maximize the development impacts of these investment projects. The PATA also implemented capacity building programs for key stakeholders and conducted workshops for sharing information and raising awareness. 3. India: Support for the National Action Plan on Climate Change - Technical Assistance

Linked to Loan; $750,000; Completed in 2011 CCF financed the PATA supporting the National Water Mission of the National Action Plan on Climate Change (NAPCC) of India. The PATA aimed to enhance resilience to climate change affecting vulnerable sectors and populations through strategic support in the operationalization of the NAPCC. The PATA developed strategic frameworks to identify and address the main areas of adaptation to climate change at two levels: (i) strategic frameworks for the India Water Systems: broad strategies for water resources related to climate adaptation and the establishment of integrated water resources management and (ii) strategic frameworks for three pilot sub-basins: location specific strategic frameworks for the three pilot sub-basins selected as focal areas for study and planning. For each sub-basin, strategies were developed to address present issues and projected adaptation needs, which were a unique feature of the PATA design. These cover the scope for increased water efficiencies and other parallel measures to use water more

1 This appendix provides background information on the projects that have been completed and financially closed,

based on information provided in the completion reports or available information on closed projects. This excludes projects with still developing completion reports.

Appendix 6

37

sustainably and equitably. An important added impact of the PATA has been greater visibility of the need for climate adaptation planning and management to be applied to the development of water resources projects in India at the central and state levels. 4. People’s Republic of China: Policy Study on Government Public Expenditure in

Agricultural Production - Technical Assistance; $500,000; Completed in 2013 CCF partly financed the PATA which aimed to contribute to sustainable agricultural production and food security in the People’s Republic of China (PRC) by enhancing the ability of concerned government agencies to adopt effective public expenditure policies and plans for increasing agricultural production. The PATA produced reports that presented in-depth analyses of the central government’s agriculture production and expenditure policies from different aspects. These outputs provided useful information and recommendations for the PRC’s Ministry of Agriculture (MOA) to improve policymaking on public investment in agriculture. The PATA also produced a useful analysis of the institutional mechanism of public expenditure under the MOA at the central government level. It also successfully assessed climate change impacts on agricultural production and food security, and the required investment for mitigation. It also produced a publication which was regarded as a comprehensive reference for future policymaking relating to public investments in agriculture, and conducted a high-level knowledge sharing event. 5. People’s Republic of China: Managing the Water Resources of Boyang Lake -

Technical Assistance; $800,000; Completed in 2015 CCF partly financed the PATA which aimed at the improved management of water resources in Jiangxi Province by improving its strategic framework for water resource management of the Boyang Lake. The PATA provided suggestions and recommendations for the Jiangxi Provincial Development and Reform Commission (PDRC) to formulate (i) strategic policies on water resource and climate change risk management for Boyang Lake; (ii) policies and strategies on urbanization and industrialization in Boyang Lake watershed; and (iii) pollution control and water quality management measures for Boyang Lake catchment. The final report, which was disseminated to the stakeholders and concerned government offices, also presented various options and scenarios to guide the Jiangxi PDRC to select the most beneficial approach to water resource management and sustainable development. The PATA also provided two international study tours for provincial officials. The training provided under the PATA not only strengthened the Jiangxi PDRC skills in water resource management and sustainable development, but also helped promote multi-sector participation in managing the Boyang Lake’s water resources.

6. Nepal: Strengthening Capacity for Managing Climate Change and the Environment

- Technical Assistance; $700,000; Competed 2013 CCF financed the capacity development technical assistance (CDTA) aimed at strengthening country capacity for environment and climate change management in Nepal. The CDTA put into place a number of institutional changes: (i) a detailed institutional framework based on a federally-structured government was agreed upon; (ii) the institutional framework for the Department of Energy was produced and its establishment is underway; (iii) a proposal for establishing the Climate Change Center was prepared; (iv) a technical proposal for establishing new sections within the Ministry of Environment, Science and Technology (MOEST) was drafted; and (v) a technical proposal for strengthening linkages between MOEST and other agencies was drafted. Most CDTA efforts focused on the institutional framework for MOEST, however, the training programs for districts and communities were also developed and pilot tested under the CDTA. The CDTA also provided initial recommendations on funding mechanisms for environmental

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management, as well as developed and implemented effective public education, information, and awareness activities on environment and climate change. Several knowledge products and associated training programs on climate change and environmental protection were produced. 7. Nepal: High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project -

Technical Assistance; $730,000; Competed in 2014 CCF partly financed the project preparatory technical assistance (PPTA) for an envisaged project that will contribute to the reduction of poverty in the highlands by improving income, employment opportunities and the nutritional status of poor farm families, and by increasing the productivity of the livestock subsector. CCF resources were used to develop climate change adaptation strategies for sustainable livelihoods based on downscaled climate change impact modeling and community-based climate impact assessment of target watersheds, vulnerable watershed-dependent populations, and agriculture related infrastructure.

8. Regional: Strengthening Capacity of Pacific Developing Member Countries to

Respond to Climate Change, Phase 1 - Technical Assistance; $1.365 million; Completed 2014

CCF partly financed the regional CDTA which aimed to assist the developing member countries (DMCs) in the Pacific in building resilience to climate change, climate variability, and extreme weather events through adaptation and, where possible, mitigation, taking into account local country-specific issues and needs, and complementing existing climate change activities in the region. The CDTA supported Pacific DMCs to mainstream climate change through improved knowledge and awareness, and integration of adaptation and mitigation in project designs and/or sector development plans. Under the CDTA, special studies were conducted on: (i) economics of climate change in the Pacific region, (ii) economics of climate proofing investment projects, (iii) impacts of climate change on food security, and (iv) climate resilience and urban development. The CDTA also provided the baseline and climate change vulnerability assessments and initial design of climate change adaptation projects in five DMCs. It also conducted capacity development activities on the Clean Development Mechanism (CDM), including the establishment of designated national authorities in four DMCs; and feasibility studies to scale up renewable energy technologies in Yap and Pohnpei in the Federated States of Micronesia. Workshops, meetings and country consultations relating to mainstreaming of climate change were also conducted under the CDTA.

9. Regional: Policy Options to Support Climate-Induced Migration - Technical

Assistance; $700,000; Completed in 2014 CCF financed the regional research and development technical assistance (RDTA) which aimed at the reduced DMC vulnerability from the impacts of climate-induced migration by enhancing capacity and improving the understanding on the impacts and action required to address climate-induced migration. The RDTA developed country and subregional studies to improve the empirical basis for policy and planning on climate-induced migration, and a feasibility study on options to finance needs related to climate-induced migration. It also conducted regional consultation and knowledge sharing workshops to share views and inputs on RDTA findings, identify gaps and challenges, and explore collaboration. A plan for communication and dissemination was implemented to ensure that the work being carried out under the RDTA was shared through networks of specialists on climate change and on migration, as well as through mainstream media.

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10. Sri Lanka: Strengthening Capacity for Climate Change Adaptation - Technical

Assistance; $700,000; Completed in 2011 CCF financed the CDTA which aimed at enhancing Sri Lanka’s resilience to climate change risks affecting vulnerable sectors and populations by improving effectiveness of environmental management and organization of concerned stakeholders to address climate change. As targeted, the CDTA produced the (i) National Climate Change Adaptation Strategy; (ii) an information, education and communications strategy for climate change adaptation; (iii) sector vulnerability profiles on urban development, human settlements and economic infrastructure, agriculture and fisheries, water, health, and biodiversity and ecosystem services, (iv) a climate change vulnerability data book, and (v) a series of informational brochures. The CDTA was a pioneering initiative as it was the first climate change adaptation planning initiative in the country and the first in the South Asian region to be so comprehensive in scope; and was also the first effort to compile and digest a vast body of information on climate impacts and vulnerabilities specific to Sri Lanka. The series of documents and vulnerability maps produced are now a major resource for researchers and policy makers. 11. Viet Nam: Climate Change Impact and Adaptation Study in the Mekong Delta -

Technical Assistance; $500,000; Completed in 2014 CCF partly financed the CDTA which aimed at the development of physical and economic resilience of poor and rural people to future climate change and variability in the Mekong Delta Region, by improving the capacity of sector and provincial authorities to increase climate-resilience of plans and projects for future development planning. The CDTA Identified future climate conditions and assessed the effects of future climate scenarios on natural, social, and economic systems in the Mekong Delta region. It produced good quality data and maps. Results of analyses were disseminated through workshops and knowledge products including an atlas of climate risks available on the ADB website. The CDTA also identified appropriate climate change adaptation measures for target provinces and sectors. Based on a multi-criteria analysis, possible climate change adaptation projects were finalized. A basic capacity assessment was carried out and two courses were delivered, including i) climate change guidance for provincial officials (in particular, how to prepare and access finance for climate projects) and ii) climate change awareness raising for civil society organizations and community members at district level. 12. Philippines: Climate Resilience and Green Growth in the Upper Marikina River Basin

Protected Landscape – Demonstrating the Eco-town Framework – Technical Assistance; $450,000; Completed in 2016

The CDTA aimed to enhance the resilience and green growth in the Upper Marikina River Basin Protected Landscape by improving the capacity of local government units (LGUs) and other stakeholders in the protected area to mainstream climate-resilient and green growth options in development programs, plans and policies. The CDTA prepared five sectoral vulnerability assessment reports (water, forestry, agriculture, infrastructure and health) and sectoral GHG inventories for the five LGUs. Locally appropriate climate actions were also identified and prioritized, and this enhanced the understanding of LGU staff on opportunities for climate change mitigation. Mitigation and adaptation activities targeted at different stakeholder groups were piloted in 11 sites. Six knowledge products were prepared including guidance manuals on GHG inventory, GIS mapping and analysis, benefit cost analysis and vulnerability assessment. These outputs contributed significantly in enhancing the enabling environment to address climate change issues at the LGU level. All LGUs integrated climate mitigation and adaptation measures

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in their local development plans. In March 2015, the Protected Areas Management Bureau approved the Eco-town Road Map. 13. Regional: Development and Dissemination of Climate-Resilient Rice Varieties for

Water-Short Areas of South Asia and Southeast Asia - Technical Assistance; $750,000; Completed in 2017

CCF cofinanced this RDTA with the Government of Finland. The TA aimed to develop and disseminate high-yielding climate resilient rice varieties, site-specific crop management packages for aerobic cultivation, alternate wet and dry water management, soil nutrient management, and crop diversification in Cambodia, Bangladesh, India, the Lao People's Democratic Republic, and Nepal. The TA builds on earlier research carried out by the International Rice Research Institute (IRRI) and national agricultural resource institutions and their collaborative national and provincial seed multiplication agencies, public and private sector institutes, and nongovernment organizations for large-scale seed production and distribution under TA 6276-Regional: Development and Dissemination of Water-Saving Rice Technologies in South Asia. Seed multiplications in Bangladesh and Nepal have overachieved the target volume of seed production (1,000 tons) and the target beneficiaries (5,000 farmers). Site-specific fertilizer, weed, water, and soil management and mechanization technique have been analyzed in all participating countries, based on which training tools in local languages have been produced, and training of extension workers and farmers have been carried out. A manual on sustainable aerobic rice farming practices has been prepared. The breeding programs for third generation nematode-resistant and water efficient varieties at IRRI has shown good progress but has not reached the stage of replicated trials and disseminations to participating DMCs. Under the RDTA, various generations of complex crosses evaluation, selection of promising plants, evaluation of one complex mapping population under observational yield trial, and identification of a grain yield advantage observed over the conventional biparental cross have been achieved. The expected outcome of increased rice yield and water efficiency in water-short irrigated and drought-prone rain-fed areas is partially achieved during the RDTA implementation and is to be realized over the next few years when the RDTA outputs are further developed through various activities and projects currently underway in the participating DMCs. 14. Regional: Training on Climate Change and Disaster Risk Management in

Investments and Projects - Direct Charge, $200,000; Completed in 2017

The training objective was to strengthen understanding of climate change risks and approaches to climate risk management in sector planning and investment projects. Training participants learned about and discussed (i) the nature of climate change risks to investment projects, including both slow onset phenomena and weather-induced extreme events, (ii) tools and methods for climate risk screening, (iii) approaches for climate risk and vulnerability assessment, (iv) identification and selection of adaptation options, including technical and economic evaluation, and (v) options for adaptation financing. Case studies were presented to illustrate the challenges that climate change presents to specific investment projects, how these risks have been addressed in practice, and lessons learned. The training also provided an opportunity for the participants to share their experiences in addressing climate risks in development planning and investment projects.

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15. Regional: Forum on Financial Instruments that Address the Risk of Loss and Damages associated with the Adverse Effects of Climate Change - Direct Charge, $175,450.80; Completed in 2017

The Standing Committee on Finance (SCF) of the United Nations Framework Convention on Climate Change (UNFCCC) dedicated its 2016 forum to the theme “Financial instruments that address the risks of loss and damage associated with the adverse effect of climate change.” In partnership with ADB, the 2016 forum was held at the ADB Headquarters last 5-6 September 2016. The main objective of the forum was to further understanding of (i) the implications of loss and damage associated with the adverse effects of climate change for vulnerable developing countries, vulnerable populations and the ecosystems that they depend on, and (ii) approaches and investments for addressing loss and damage associated with the adverse effects of climate change that can be designed and implemented to benefit these populations. The event was attended by almost 200 participants from developing countries across the globe, representing the government agencies involved in the development of insurance, risk finance, social protection and financial instruments to address the risks of loss and damage at the local community, sub-national and national level.

16. Regional: 5th Asia Pacific Adaptation Forum (Adapting and Living below 2°C:

Bridging the Gaps in Policy and Practice) - Direct Charge, $ 251,596.40, Completed in 2017

The forum’s theme was “Adapting and Living below 2°C: Bridging Gaps in Policy & Practice”. The sessions were organized under four major streams: adaptation planning, financing for adaptation, climate resilient development, and multi-actor cross learning. Discussions focused on climate change adaptation planning, mobilizing financing for adaptation, promoting climate-resilience and sustainable development, as well as strengthening the role of actors at different levels and partnerships. Participants explored various pathways for translating policies into practices and upscaling practices to meet the scale of adaptation needs including participation from the private and financing sectors. There were deliberate efforts to learn lessons from a decade of adaptation policy and action, looking not only at what worked, but also at what did not.

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Clean Energy Component

1. People’s Republic of China: Energy Efficiency Improvements in Inner Mongolia Autonomous Region - Technical Assistance Linked to Loan; $500,000; Completed in 2013

CCF financed the CDTA which aimed at the improved energy efficiency and environment in the Inner Mongolia Autonomous Region (IMAR) in the PRC by enhancing capacity in planning and implementing energy-efficiency projects. The CDTA addressed critical capacity gaps in the implementation of related loan projects on upgrading of district heating systems (DHS) for enhanced energy efficiency and reduced air pollution in IMAR. It provided trainings in procurement, disbursement, project administration, and monitoring and evaluation to the provincial finance bureau, provincial reform and development commissions and the local heating companies, which contributed to improve performance of both loan projects. It also developed monitoring and reporting procedures in assessing energy efficiency in DHS. A best-practice paper and public awareness material on demand side energy efficiency in DHS was also prepared. The CDTA recommendation including consumption based billing, heat metering, and two-part heating tariff to enhance demand side energy conservation has already been piloted in DHS in Wuhai City and planned to be gradually replicated in other DHS subprojects under the supported loan projects.

2. People’s Republic of China: Utilization of Foreign Capital to Promote Energy

Conservation and Energy-Efficient Power Generation Scheduling - Technical Assistance; $900,000; Completed in 2012

CCF partly financed the CDTA which aimed at greater energy conservation and pollution reduction by the industry and power sectors by enhancing the institutional capacity for planning, financing, and implementing measures to improve the efficiency of energy supply and use. The first part of the CDTA produced (i) a comprehensive analysis on energy efficiency policy and constraints in financing such projects, with recommendations for the Twelfth Five-Year Plan, (ii) an assessment of key energy intensive industries and recommended actions for the government and the industry to leapfrog to highest energy efficiency standards, and (iii) recommendations for innovative measures on using ADB lending to leverage much larger commercial financing for energy efficiency investment and addressed key constraints in energy service companies financing. A comprehensive knowledge dissemination and capacity strengthening program was also implemented. A proposed national platform for energy efficiency financing using a multi-tranche financing facility covering multiple provinces was designed and discussed with key stakeholders and was well accepted in the final workshop. Under the second part of the CDTA, consultancy services were engaged to address the specialized technical requirements and formulate the comprehensive policy recommendations. The consultants also supported the National Energy Administration (NEA) in summarizing the lessons learned from piloting power generation scheduling and dispatch system in selected provinces, including Guangdong, Guizhou, Henan, Jiangsu, and Sichuan. Workshops and seminars to disseminate the CDTA results to key stakeholders were also conducted. 3. People’s Republic of China: China Clean Development Mechanism Fund Capacity

Development - Technical Assistance; $500,000; Completed in 2012 CCF partly financed the PATA which aimed at the reduction of GHG emissions and mitigation of global climate change impacts by strengthening the operational capacity in investment decision-

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making of the China Clean Development Mechanism Fund (CCDMF), to promote and support climate change-related projects. CCDMF was established to efficiently utilize revenues under the registered CDM projects and support domestic climate change-related research programs as well as leverage larger public and private financing to scale-up climate change mitigation efforts. The PATA prepared relevant operational measures and handbooks for capital investment, risk management, and performance evaluation; drafted related templates of legal documents; and recommended potential climate change-related financial instruments (i.e. equity investment, entrusted loan, portfolio guarantee, and financial product investment). These provided specific guidelines for project selection, review, approval, and performance evaluation, which have since been incorporated and extensively used by the CCDMF in its daily operations. The PATA also provided a comprehensive management platform for the CCDMF for administration, project development, and human resources management. The book on the PRC’s CDM experiences introduced positive lessons in developing and implementing CDM projects in the PRC that will benefit other developing countries.

4. People’s Republic of China: Concentrating Solar Thermal Power Development -

Technical Assistance; $1 million; Completed in 2012 CCF financed the CDTA which aimed at the lowering of capacity barriers for the demonstration of concentrating solar power (CSP) technology. The CDTA contributed to the (i) development of a road map for CSP demonstration and deployment in Gansu Province, (ii) implementation of a pilot megawatt-scale CSP plant, (iii) identification of a priority demonstration project and pre-feasibility assessment in Gansu Province, (iv) capacity assessment and strengthening on CSP demonstration, and (v) dissemination of knowledge products to relevant provinces on lessons learned and challenges in CSP development. The demonstration of CSP got underway in the PRC by 2012 with the feasibility assessment of four demonstration projects being prepared. Two CSP projects were included in ADB’s lending pipeline for the PRC. The CSP roadmap developed contained useful information on the complementary policy support needed to kick-start the demonstration, and a technology assessment manual which is expected to be widely used for prescreening potential CSP sites and projects. The CDTA also screened many potential CSP demonstration sites, undertook a pre-feasibility assessment of the Jinta CSP Project and conducted a large-scale CSP workshop that brought together high-level decision makers to discuss best practices, lessons learned, opportunities, and barriers to CSP demonstration and deployment in the PRC. 5. People’s Republic of China: Developing a Low-Carbon Economy in Yunnan

Province - Technical Assistance; $400,000; Completed in 2012 CCF financed the CDTA which aimed at contributing to the enhancement of energy security with lower carbon emissions in Yunnan Province by improving the capacity of provincial governmental agencies. The CDTA successfully delivered (i) an investigation report of energy consumption and carbon emissions in the energy-intensive industries in Kunming; (ii) a draft strategy and prioritized action plan to enhance energy efficiency and reduce emissions; and (iii) training and information dissemination. The CDTA conducted investigations, analyses, consultations, workshops and seminars. It produced high quality analyses contrasting low-carbon development in Kunming City with the business-as-usual development path. The CDTA reports identified key barriers to energy efficiency improvement and emission reduction in Kunming and recommended the following measures: (i) public campaign to enhance energy efficiency awareness, (ii) capacity assessment and strengthening for small and medium enterprises, (iii) market-oriented policy reform, (iv) technology transfer, and (v) regional and international cooperation.

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6. People’s Republic of China: Developing Tianjin Emission Trading System - Technical Assistance; $550,000; Completed in 2014

CCF partly financed the CDTA which aimed at the successful pilot-testing of an emission trading system (ETS) in Tianjin to support the establishment of a national level cap-and-trade based ETS that will provide market based price signals for emission reduction. The CDTA contributed to the successful launch of the Tianjin ETS. It prepared a strategic policy paper which assessed the economic impacts of introducing emission trading to different economic sectors and was used to provide recommendations on overall emission cap, economic sector coverage and emission allocation method. The CDTA also prepared recommendations on detailed design of the Tianjin ETS including the trading rules and regulatory systems, considering the overall guidelines issued by the central government and specific circumstances of Tianjin. It also prepared the technical specification for the trading platform and registry to record the property rights of emission allowances and financed the procurement of the trading platform and registry from a software vendor. The CDTA also provided significant knowledge transfer to the staff of Tianjin Climate Exchange - the Implementing agency of the CDTA and operating entity of Tianjin ETS. It financed a study tour to provide exposure to Tianjin government officials on the European ETS operations.

7. People’s Republic of China: Advancing Shanghai Carbon Market through

Emissions Trading Scheme - Technical Assistance; $72,308; Completed in 2015 CCF partly financed the PATA which aimed at the successful pilot-testing of the Shanghai ETS to contribute to the establishment of the carbon trading platform in Shanghai Province in the PRC. The PATA contributed to the detailed design of the Shanghai pilot ETS which launched the Shanghai emission trading. The PATA (i) conducted an economic impact assessment of Shanghai pilot ETS which concluded that no negative impacts on the city economy and variable impacts on different sectors but no loss of competitiveness in any of the highly affected sectors; (ii) provided recommendation on sector-specific benchmarking methods for the energy, iron and steel, refineries and aviation sectors; (iii) provided policy recommendations on carbon finance products and market development with additional recommendations on future contracts while discussing insights on market potential demand and supply; and (iv) prepared and discussed in detail a policy note on the carbon market oversight issue which is critical to the Shanghai pilot ETS and continuous implementation of the Shanghai carbon market. The PATA findings were incorporated into the official proposal of the Shanghai pilot ETS design.

8. Regional: Implementation of Asian City Transport – Promoting Sustainable Urban

Transport in Asia Project - Technical Assistance; $2.8 million; Completed in 2012 CCF financed the PPTA which aimed to contribute in developing programs and projects for sustainable urban transport. The CDTA successfully contributed to the development of pilot sustainable urban transport (SUT) projects in three cities, namely, Kathmandu (Nepal), Vientiane (the Lao People’s Democratic Republic), and Davao (the Philippines). It made significant contributions to consensus building and knowledge dissemination to help integrate transport in the global climate negotiations and regional transport and climate policy initiatives. These included the following major outputs: (i) Common Policy Framework on Transport and Climate Change in Developing Countries; (ii) Bellagio Declaration on Transport and Climate Change; (iii) Forum on Transport and Climate Change in Developing Countries; (iv) Partnership on Sustainable Low Carbon Transport, and (v) collaboration with various organizations on transport-related events and knowledge products, such as the joint publications by the ADB, Inter-American Development Bank and the Partnership on Sustainable, Low Carbon Transport (SLoCAT) on

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Nationally Appropriate Mitigation Actions (NAMAs) for the Transport Sector: Case Studies for Brazil, Indonesia, Mexico and the PRC, and Applicability of Post 2012 Climate Instruments for the Transport Sector. The CDTA has also greatly strengthened ADB assistance to meet the increasing demands from DMCs for climate-friendly urban transport assistance. 9. People’s Republic of China: Tianjin Integrated Gasification Combined Cycle Power

Plant Project - Grant Component of Investment; $5,000,000; Completed in 2017 The Tianjin Integrated Gasification Combined Cycle (IGCC) Power Plant Project involved constructing and operating a coal-fired power plant with 250-megawatt (MW) capacity in Tianjin Harbor Industrial Park in Tianjin City. The project aimed to introduce IGCC technology, one of the most efficient and least polluting advanced clean coal technologies available, for the first time in the PRC. It was also to be the first IGCC power plant in the Asia and Pacific region. CCF funded the grant component for the Tianjin IGCC to significantly reduce risks and strengthen project management capacity and reporting on compliance with key safeguards. The grant was intended to be utilized for the (i) long-term maintenance contracts with the respective suppliers of the coal gasifier and gas turbines, (ii) civil work contract associated with the air separation unit, and (iii) recruitment of international and national consultants to supervise the project’s implementation. $500,000 was allocated to finance the preparation of the roadmap and the study tours to facilitate dialogues with the operators of other IGCC plants. The project has effectively achieved its expected outcome of demonstrating an advanced clean coal technology that met growing electricity demand in an environmentally sustainable manner by improving the thermal efficiency of the power sector and reducing the rate of growth in coal consumption.

10. Lao People’s Democratic Republic: Recruitment of Climate Change Expert (National

Consultant in Lao PDR) - Direct Charge; $75,000; Completed in 2011 CCF assisted the Government of the Lao People’s Democratic Republic in developing their climate change program for adaptation and identifying opportunities for renewable energy and energy efficiency to increase energy security and mitigate GHG emissions. CCF resources were used for consultancy services on the evaluation of the national policies relating to climate change; identification of highest impact interventions improving energy efficiency, promoting renewable energy use and mitigating GHG emissions; specification of projects that may be put forward for ADB financing; identification of other possible sources of financing for high impact projects, and delivery of capacity building workshops. CCF also supported the Ministry of Environment and Water and the Lao PDR Resident Mission on broader climate change issues such as on evaluation of the most vulnerable sectors and recommendations to improve resilience, possible sources and access to global funds for climate resilience, preparation of the first national communication on climate change to the United Nations Framework for Climate Change Convention, and preparation of NAMAs.

11. People’s Republic of China: Urban Transport Strategy to Combat Climate Change -

Direct Charge; $75,000; Completed in 2012 CCF supported the development of a sustainable urban transport strategy in the PRC to reduce GHG emissions and address climate change. CCF resources were used for consultancy services relating to the conduct of a study on urban transport strategies, showcasing good practices from around the world and providing recommendations on ways to apply clean development mechanism (CDM) to public transport in the PRC, including the identification of pilot programs. In particular, the study recommended the development of efficient public transport systems, travel demand management strategies, and energy efficient and low-carbon emitting vehicles. CCF

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resources also covered the conduct of an Urban Transport Strategy workshop where the results of the study were presented.

12. Regional: Carbon Forum Asia 2008 - Direct Charge; $150,000; Completed in 2010 CCF supported the conduct of the Carbon Forum Asia held on 12-13 November 2008 in Singapore. Organized by International Emissions Trading Associations and Koelnmesse, Inc. in partnership with ADB, Japan Bank for International Cooperation, and the European Commission, the event provided an excellent platform to bring together carbon market makers and participants in Asia. CCF resources were used to finance participation of representatives from designated national authorities and project entities in ADB DMCs, and the ADB Sellers Pavilion at the event. The Pavilion proved to be an ideal venue for buyers and sellers in the CDM market to meet and deliberate. Supported participants for the event gained useful information for their CDM projects, carbon trading/negotiations and capacity building.

13. Regional: The Climate Public-Private Partnership Fund (CP3) - Direct Charge;

$150,000; Completed in 2015 CCF resources were used to support the development of the Climate Public-Private Partnership Fund (CP3), an investment vehicle seeded by public sector capital to mobilize private sector institutional funds towards investments in low carbon and clean energy technologies in Asia. Under the direct charge (DC), consulting services were engaged for the conceptualization, designing and development process of CP3. The DC provided added value in (i) mapping out potential public and private sector investors as well as in developing a fundraising plan; (ii) development of marketing and presentation materials and framework private placement memorandum; (iii) development of the pipeline of funds and direct co-investments, screening and assessment of these; (iv) negotiation of legal documents, liaison with partners and investors and internal ad hoc work on development for CP3.

14. Regional: Preparing and Tracking Private Sector Clean Energy Investments in

DMCs - Direct Charge; $120,000; Completed in 2013 CCF resources were used to engage a national consultant to support the development and tracking of private sector clean energy investments in ADB DMCs. In particular, the consultant provided support to ADB’s Private Sector Operations Department (PSOD) by: (i) assisting in the preparation and processing of private sector projects/programs with climate mitigation components; (ii) providing updated information on clean energy technologies, initiatives, methodologies, practices, projects and/or programs, and financing facilities; (iii) participating in the conduct of due diligence activities; (iv) contributing to the drafting of necessary documentation associated with loan/grant/technical assistance projects; and (v) assisting in transactions and operational activities associated with private sector projects and/or programs, grants and TAs contained in the PSOD pipeline of clean energy investments. 15. Regional: Journalist Knowledge-Sharing Program on Clean Energy Development –

Direct Charge; $75,000; Completed in 2017

CCF resources were used to cover the total cost of this knowledge sharing program, particularly the airfare, hotel accommodation and per diem of the 17 ADB-sponsored journalist delegates representing 17 major media organizations from 12 DMCs. The program, held from 1-6 May 2016, was a key component of the 49th ADB Annual Meeting in Frankfurt, Germany. It aimed to provide

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sponsored DMC journalists deeper exposure and better understanding of topical development issues – particularly i) sustainable development, ii) climate change, and iii) clean energy – affecting the Asia and Pacific region. The program generated 207 new articles, including pickups by other media publications. The sponsored journalists actively covered the main Annual Meeting events including the President’s opening and closing press conferences, and the opening session speech by the President. The significant overall published output of the sponsored journalists indicates an enhanced understanding and appreciation of development issues facing the region.

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Reduced Emissions from Deforestation and Degradation and Improved Land Use Management Component

1. Regional: Core Environment Program and Biodiversity Conservation Corridors

Initiative in the Greater Mekong Subregion – Technical Assistance; $1,000,000; Completed in 2016

CCF provided $1 million to this $30 million initiative to support the REDD+ preparedness activities in Biodiversity Conservation Corridors Initiative pilot sites in the Lao People’s Democratic Republic, Thailand and Viet Nam. The TA undertook capacity building activities for provincial authorities on REDD+ readiness in the three countries. Among the activity’s important outcomes are:2 (i) in Thailand, a national REDD+ group was established focusing on REDD+ policy; Reference Emissions Levels and Measurement, Reporting and Verification; benefit sharing mechanisms; and capacity building; (ii) in Viet Nam, REDD+ readiness activities were undertaken in Quang Nam, Quang Tri and Thua Thien Hue provinces; and (iii) in the Lao People’s Democratic Republic, the funding is expected to leverage an additional $13.3 million from the Forest Investment Program for REDD+ activities in the Biodiversity Conservation Corridors Initiative project. 2. Regional: Promoting Ecosystem Services and Forest Carbon Financing in Asia

and the Pacific – Technical Assistance; $800,000; Completed in 2017 The technical assistance (TA) was designed to support DMCs to develop knowledge and capacity to assess and value ecosystem services; and integrate these values into strategic planning and project-level decision-making. The TA was also designed to address specific criteria of ADB’s Climate Change Fund, including climate change mitigation. The TA produced a study on “Opportunities for Investing in Natural Capital” and five policy briefs. An international forum on “Integrating Climate Resilience and Natural Capital into Transport Planning and Design” was held in Viet Nam, with 160 participants. Trainings were held in Myanmar and Viet Nam on ecosystem service assessment and use of spatial ecosystem service valuation tools, with a total of 381 DMC participants. The Forest Investment Plan for Cambodia was approved by the Government in April 2017 and endorsed by the Climate Investment Funds in June 2017. In Myanmar, the TA supported the preparation of the ADB-financed Irrigated Agriculture Inclusive Development Project. The TA also mapped and assessed land degradation; conducted household studies on the use of ecosystem services by local villages; and identified management options. A linked grant of $4,787,000 was prepared and approved by the Global Environment Facility (GEF). In Viet Nam, the TA supported the preparation of the ADB-financed Support to Border Areas Development Project. The TA mapped and valued ecosystem services in five provinces; and supported preparation of one of the loan’s outputs, which will support sub-regional planning, integrating ecosystem services and climate change. The TA worked in partnership with WWF in Viet Nam and with GEF in Myanmar– both under existing memorandums of understanding rather than new agreements. The TA outcome indicator – at least three target DMCs developed road maps or action plans for integrating ecosystem services valuation into strategic planning and project decision-making – was achieved. These were in Cambodia, Myanmar and Viet Nam.

2 GMS Environment Operations Center. 2013. Core Environment Program and Biodiversity Conservation Initiative

2006-2012 Phase I Completion Report. Bangkok.

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