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JOINT REPORT ON MDB CLIMATE FINANCE

2013

A report by a group of Multilateral Development Banks (MDBs) comprising the AfricanDevelopment Bank (AfDB), the Asian Development Bank (ADB), the European Bank for

Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), and the International Finance Corporation (IFC) and

World Bank (WB) from the World Bank Group (WBG)

September 2014

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EXECUTIVE SUMMARY1

This is the third edition of the joint MDB Report on Climate Finance and the information provided has been

expanded to include a better sectoral breakdown, and split by public and private operations.

Multilateral Development Banks (MDBs) provided USD 23.8 billion in financing in 2013 to address the challengesof climate change and, since 2011, have provided over USD 75 billion in climate finance to developing andemerging economies.

Of the total USD 23.8 billion in climate finance, 80%, or USD 18.9 billion, was dedicated to mitigation and 20%, orUSD 4.8 billion, to adaptation. Of the total commitments, 9%, or USD 2.2 billion, came from external resources,such as bilateral or multilateral donors, including the Global Environment Facility and the Climate InvestmentFunds.

This report covers finance for mitigation, adaptation and projects with dual adaptation and mitigation benefits.As in previous years, the calculation of mitigation finance is based on a common list of activities at theintersection of what all MDBs consider mitigation. Adaptation finance is calculated using the joint MDBmethodology based on a context- and location-specific approach. Data reported in both cases corresponds to thefinancing of those components and/or sub-components or elements/proportions of projects that providemitigation and/or adaptation benefits (rather than the entire project cost).

Some MDBs have different internal accounting approaches for mitigation. In such cases, the volume of eachMDB’s climate finance mitigation calculated using their internal methodologies is separately reported.

The regional coverage for 2013 is quite balanced with two regions (East Asia and Pacific, Non-EU Europe andCentral Asia) each receiving roughly 20% of total climate finance provided and four regions (South Asia, Sub-Saharan Africa, Latin America and Caribbean, EU New Member States) 10-15% each. In regards to sectorcoverage, 22% of adaptation finance went to “Coastal and riverine infrastructure (i ncluding built flood protectioninfrastructure)” and 30% to the category comprising “ Energy, transport, and other built environment andinfrastructure ”. In mitigation finance, renewable energy still takes by far the largest share, with 25% of the total.

1 For any questions or comments, please email [email protected]

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................................... 1

INTRODUCTION ........................................................................................................................................ 4

SECTION 1: MDB CLIMATE FINANCE, 2013 ........................................................................................... 5

1. TOTAL MDB CLIMATE FINANCE, 2013 ..................................................................................... 5

2. MDB ADAPTATION FINANCE, 2013 ........................................................................................... 8

3. MDB MITIGATION FINANCE, 2013 ........................................................................................... 11

4. FINANCE WITH DUAL ADAPTATION AND MITIGATION BENEFITS, 2013 ......................... 15

SECTION 2: GENERAL ........................................................................................................................... 16

1. DEFINITIONS: ............................................................................................................................. 16

2. GEOGRAPHICAL COVERAGE OF THE REPORT, AND REGIONAL BREAKDOWNS ........ 17

3. GUIDANCE SECTION ON THE ADAPTATION FINANCE TRACKING METHODOLOGY .... 19

1) Background and guiding principles .............................................................................................. 19 2) Overview of the adaptation finance tracking methodology ........................................................... 19

a. Context of vulnerability to climate variability and change ............................................................. 19

b. Statement of purpose or intent ..................................................................................................... 19

c. Clear and direct link between climate vulnerability and project activities ..................................... 19

3) Reporting of project activities with dual benefits .......................................................................... 20

4) Adaptation case studies ............................................................................................................... 21

4. JOINT MDB APPROACH FOR MITIGATION FINANCE REPORTING ................................... 24

1) Principles of the Joint MDB Mitigation Finance Reporting ........................................................... 24 2) Typology of Mitigation Activities included in the Joint MDB Mitigation Finance Reporting .......... 25

3) Mitigation case studies ................................................................................................................. 27

4) Mapping mitigation sectors (shown in table 8) against the Mitigation Typology .......................... 30

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List of Tables

Table 1: MDB Climate Finance, 2013 (USD millions) ......................................................................................... 6 Table 2: MDB Climate Finance by Region, 2013 (USD millions) .......................................................................... 7 Table 3: MDB Adaptation Finance, 2013 (USD millions) .................................................................................... 8

Table 4: MDB Adaptation Finance by Region, 2013 (USD millions) ..................................................................... 9 Table 5: MDB Adaptation Finance by Sectors, 2013 (USD millions) .................................................................. 10 Table 6: MDB Mitigation Finance According to the Joint Approach, 2013 (USD millions) ................................... 11 Table 7: MDB Mitigation Finance by Region, 2013 (USD millions) .................................................................... 11 Table 8: MDB Mitigation Finance by Sectors, 2013 (USD millions) ................................................................... 13 Table 9: Mitigation Finance showing differences from MDB joint methodology ............................................... 14 Table 10: MDB Finance with dual adaptation and mitigation benefit figures 2013 (USD millions) ...................... 15 Table 11: Adaptation Sectors and Examples of Sub-Sectors ............................................................................ 20 Table 12: Indicative Examples of Climate Resilience Activities by Sub-Sector .................................................... 21 Table 13: Mitigation Sector Definition ........................................................................................................... 30

List of Figures

Figure 1: MDB Climate Finance, 2013 (USD millions) ........................................................................................ 6 Figure 2: MDB Climate Finance by Region, 2013 (USD millions) ......................................................................... 7 Figure 3: MDB Adaptation Finance, 2013 (USD millions) ................................................................................... 8 Figure 4: MDB Adaptation Finance by Region, 2013 (USD millions) .................................................................... 9 Figure 5: MDB Adaptation Finance by Sectors, 2013 (USD millions) ................................................................. 10 Figure 6: MDB Mitigation Finance According to the Joint Approach, 2013 (USD millions) .................................. 11

Figure 7: MDB Mitigation Finance by Region, 2013 (USD millions) ................................................................... 12 Figure 8: MDB Mitigation Finance by Sectors, 2013 (USD millions) .................................................................. 13

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INTRODUCTION

The international community recognises the need to join forces to avert dangerous climate change and to adaptto unavoidable climate change. This requires mobilising a wide range of financial resources, public and private,bilateral and multilateral, including alternative sources. That makes it increasingly important to track and reportfinancial flows that support climate change mitigation and adaptation, to build trust and accountability withregard to climate finance commitments, and to monitor trends and progress in climate-related investment.

The present report is based on the joint MDB approach for climate finance reporting, which was first reported in2012 by the group of Multilateral Development Banks (MDBs - the Asian Development Bank (ADB), the AfricanDevelopment Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the EuropeanInvestment Bank (EIB), the Inter-American Development Bank (IDB) and the International Financial Corporation(IFC) and World Bank (WB) from the World Bank Group (WBG)) to work towards better climate finance tracking.It responds to the particular context of the activities that the MDBs carry out in developing and emergingeconomies and is built on the premise that climate finance and development are closely aligned. This is the thirdyear that the group of MDBs have carried out joint reporting. 2 Climate finance reported by MDBs is based on thedefinitions in section 2.1 and is for the fiscal year 2013.

Since 2011, when MDBs began jointly tracking climate finance flows, we have already delivered over USD 75

billion in financing for climate action in developing and emerging countries. Setting meaningful targets andidentifying opportunities requires consistent and robust data and therefore the group of MDBs has continued toimprove the joint approach and refine the classification of activities. The following additions were introduced inthis year’s report:

- In order to give information about the nature of the recipients of climate finance, the data in thisyear’s report is broken down by public and private 3 recipients/borrowers;

- Finance with dual adaptation and mitigation benefits has been separately presented;- The adaptation sectoral breakdown has been revised in order to present more detailed information

on the main sectors in which MDBs provided adaptation finance;- Minor adjustments were made to the mitigation typology, including separate reporting of the

category: “EE and RE financing through financial intermediaries”, due to the importance ofintermediated lending in those sectors; and

- Mitigation case studies have been included to better illustrate the mitigation methodology.

The joint approach serves as a tool for MDBs to consistently measure their engagement in climate change in atransparent and harmonised manner. MDBs are also in contact with other stakeholders to discuss commonalitiesand differences among climate finance tracking approaches with the aim of potential harmonisation.

MDBs’ activities on climate change go beyond financial operations in many areas, such as for example advice onproject design, policy dialogue or the application of climate-specific safeguards. Much of the technical support toour clients on climate change may be of small volumes but with major impacts. Likewise, MDB collaboration onclimate change goes beyond this report. We especially collaborate on estimating greenhouse gas emissions fromprojects and co-financing including in Climate Investment Funds (CIFs). Regarding adaptation, MDBs are awarethat good adaptation goes beyond purely physical investments and therefore, although this report tracksfinance, the MDBs also prioritise support for adaptive management / adaptive procedures: for example, changesin operating or maintenance procedures making projects more resilient.

The report has two main sections. Section 1 contains total MDB climate finance figures for 2013 as well as thedetailed data, broken down by adaptation and mitigation and by sector and geographic region. Section 2 givesexplanations on the MDB joint approach definitions, geographical coverage and sectoral breakdown. It alsocontains a guidance section and provides case studies to illustrate the MDB adaptation and mitigation climatefinance tracking approach.

2 Mitigation Report 2011: http://www.eib.org/attachments/documents/joint_mdb_report_on_mitigation_finance_2011.pdf- coordinated by IDBAdaptation Report 2011: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/Joint%20MDB%20Report%20on%20Adaptation%20Finance%202011.pdf - coordinated by AfDB.Joint Report 2012: http://www.ebrd.com/downloads/sector/sei/climate-finance-2012.pdf - coordinated by EBRD.Joint Report 2013: http://www.eib.org/attachments/documents/joint_report_on_mdb_climate_finance_2013.pdf -coordinated by EIB3 For the definition of public and private recipients/borrowers, please refer to section 2.

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SECTION 1: MDB CLIMATE FINANCE, 2013

1. TOTAL MDB CLIMATE FINANCE, 2013

The tables below present total climate finance 4 provided by the MDBs in 2013 in developing, emerging andtransition economies according to the joint MDB approach, based on the principles set out in the first reportspublished in 2012 and 2013 and explained in more detail in Section 2 of this report. Definitions of terms areincluded in Section 2.1.

The approach covers both MDBs’ own resources and external resources managed by the MDBs (such as fundingfrom the Global Environment Facility, the Climate Investment Funds, Carbon Funds or the EU facilities). Toprevent double counting (in particular as some external resources may already be covered in bilateral reporting),external resources managed by the MDBs are clearly separated from MDBs’ own resources.

For this year’s report, additional columns were added to all tables to show how MDB climate finance is splitbetween public and private operations based on the status of the first recipient/borrower. 5

Table 1 reports total climate finance figures for 2013 using the joint MDB approach , alongside each MDB’s to talfinance figures. Table 2 shows the same figures with a regional breakdown.

4 Total MDB climate finance is equal to the sum of mitigation, adaptation and dual benefit finance (Sections 1.2, 1.3 and 1.4).5 Refer to Section 2 for clarifications on public/private split.

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Table 1: MDB Climate Finance, 2013 (USD millions) 6

MDB

MDB Resources External Resources

Total MDBClimate Finance

Total MDBFinance

Investment andtechnical assistance Policy-based

instruments

Investment andtechnical assistance Policy-based

instruments

Public Private Public Private

AfDB 622 426 - 116 40 - 1,205 6,699

ADB 2,324 503 - 294 147 - 3,268 21,023

EBRD 1,064 2,255 - 63 78 - 3,460 11,286

EIB 3,698 1,526 - - - - 5,224 23,496

IDB 639 293 66 142 80 - 1,220 14,398

IFC 85 2,404 - 9 167 4 2,669 18,581

WB 4,938 - 712 928 179 - 6,757 33,453

Sub - Total 13,371 7,407

778

1,552 691

4 23,804 128,937TOTAL 20,779 2,243

Figure 1: MDB Climate Finance, 2013 (USD millions)

6 A unified exchange rate of 1.3281 EUR/USD (average exchange rate for 2013 as per the European Central Bank – ECB) wasapplied for both EBRD and EIB figures, which are usually reported in euro.

AfDB; USD 1,205million; 5%

ADB; USD 3,268million; 14%

EBRD; USD 3,460million; 15%

EIB; USD 5,224million; 22%IDB; USD 1,220

million; 5%

IFC; USD 2,669million; 11%

WB; USD 6,757million; 28%

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Table 2: MDB Climate Finance by Region 7, 2013 (USD millions)

Region

MDB Resources External ResourcesTotalMDB

ClimateFinance

perregion

TotalMDB

Finance per

region

Investments andtechnical assistance

Policy-based

instruments

Investments andtechnical assistance

Policy-based

instrumentsPublic Private Public Private

SOUTH ASIA 2,246 514 100 230 30 1 3,120 16,600

EAST ASIA AND THE PACIFIC 2,459 798 70 704 276 1 4,308 19,016

MIDDLE EAST AND NORTH AFRICA 416 57 67 17 2 0 559 4,749

SUB-SAHARAN AFRICA 1,480 1,204 64 201 107 0 3,057 17,517

LATIN AMERICA AND THE CARRIBEAN 1,195 827 467 179 138 1 2,806 24,528

EU 13 2,056 1,243 - 54 12 - 3,365 18,143

NON EU- EUROPE AND CENTRAL ASIA 2,624 2,266 10 112 105 0 5,117 22,4463

REGIONAL 895 497 - 55 22 1 1,471 5,921

Sub - Total 13,371 7,407

778

1,552 691

4 23,804 128,937 TOTAL 20,779 2,243

Figure 2: MDB Climate Finance by Region, 2013 (USD millions)

7 Refer to Section 2.2 for further details. This regional classification does not necessarily follow the precise regionalclassifications in use in various MDBs.

SOUTH ASIA; USD3,120 million; 13%

EAST ASIA AND THEPACIFIC; USD 4,308

million; 18%

MIDDLE EAST ANDNORTH AFRICA; USD

559 million; 2%

SUB-SAHARAN AFRICA;USD 3,057 million; 13%LATIN AMERICA AND

THE CARRIBEAN; USD2,806 million; 12%

EU 13; USD 3,365million; 14%

NON EU- EUROPE ANDCENTRAL ASIA; USD5,117 million; 22%

REGIONAL ; USD 1,471million; 6%

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2. MDB ADAPTATION FINANCE, 2013

The tables below (3-5) present adaptation finance provided by the MDBs for 2013 according to the joint MDBapproach. Table 3 reports the total adaptation finance per MDB, table 4 reports the same figures according tothe regional coverage, and table 5 reports the same figures per sector. 8

Data reported corresponds to the financing of adaptation projects or of those components, sub-components orelements within projects that provide adaptation benefits (rather than the entire project cost). For MDBs thatreport dual benefits separately (see section 1.4), this table does not include the adaptation elements of that dualbenefit financing, this is shown separately in table 10.

Table 3: MDB Adaptation Finance, 2013 (USD millions)

MDB

MDB Resources External Resources

TOTALInvestments and

technicalassistance

Policy-basedinstruments

Investments andtechnical

assistancePolicy-basedinstruments

Public Private Public Private

AfDB 386 - - 51 - - 437

ADB 879 - - 101 - - 980

EBRD 104 51 - 32 - - 187

EIB 166 - - - - - 166

IDB 104 2 6 7 2 - 121

IFC - 8 - - - - USD 8

WB 2,251 - 481 195 - - 2,927

Sub -Total 3,890 61

487

386 2

- 4,826TOTAL 3,951 388

Figure 3: MDB Adaptation Finance, 2013 (USD millions)

8 Refer to section 2.3 for details of adaptation methodology and sectors and sub-sectors for adaptation finance.

AfDB; USD 437million; 9%

ADB; USD 980million; 20%

EBRD; USD 187million; 4%

EIB; USD 166 million;3%

IDB; USD 121million; 3%

IFC; USD 8 million;0%

WB; USD 2,927million; 61%

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Table 4: MDB Adaptation Finance by Region 9 , 2013 (USD millions)

REGION

MDB Resources External Resources

TOTALInvestments and

technicalassistance

Policy-basedinstruments

Investments andtechnical

assistancePolicy-basedinstruments

Public Private Public PrivateSOUTH ASIA 847 - 50 110 - - 1,008

EAST ASIA AND THE PACIFIC 978 - 35 60 - - 1,072

MIDDLE EAST AND NORTH AFRICA 0 8 67 10 - - 85

SUB-SAHARAN AFRICA 786 - 57 109 - - 952

LATIN AMERICA AND THE CARIBBEAN 178 0 278 16 0 - 473

EU 13 75 4 - 27 - - 106

NON-EU EUROPE AND CENTRAL ASIA 214 46 - 42 - - 301

REGIONAL 812 3 - 13 2 - 829

Sub -Total 3,890 61

487

386 2

- 4,826TOTAL 3,951 388

Figure 4: MDB Adaptation Finance by Region, 2013 (USD millions)

9 Refer to Section 2.2 for regional breakdown.

SOUTH ASIA; USD

1,008 million; 21%

EAST ASIA AND THEPACIFIC; USD 1,072

million; 22%

MIDDLE EAST ANDNORTH AFRICA; USD

85 million; 2%SUB-SAHARAN AFRICA;USD 952 million; 20%

LATIN AMERICA ANDTHE CARIBBEAN; USD

473 million; 10%

EU 13; USD 106million; 2%

NON-EU EUROPE ANDCENTRAL ASIA; USD

301 million; 6%

REGIONAL; USD 829million; 17%

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Table 5: MDB Adaptation Finance by Sectors, 2013 (USD millions)

SECTOR

MDB Resources External Resources

TOTALInvestments and

technicalassistance

Policy-basedinstruments

Investmentsand technical

assistancePolicy-basedinstruments

Public Private Public Private

Water & wastewater systems 683 8 - 97 - - 788

Agricultural & ecological resources 721 33 119 112 - - 986

Industry, Extractive industries, Manufacturing & Trade 64 5 45 0 - - 114

Coastal & riverine infrastructure (including built floodprotection infrastructure)

929 - 34 84 - - 1,047

Energy, transport, and other built environment andInfrastructure

1,305 8 43 66 - - 1,422

Institutional Capacity 133 2 220 16 2 - 372

Cross sectors & other 56 5 27 10 0 - 98

Sub -Total 3,890 61

487

386 2

- 4,826TOTAL 3,951 388

Figure 5: MDB Adaptation Finance by Sectors, 2013 (USD millions)

Water & wastewatersystems; USD 788

million; 16%

Agricultural &ecological resources;USD 986 million; 20%

Industry, extractiveindustries,

manufacturing & trade;USD 114 million; 2%

Coastal & riverineinfrastructure

(including built floodprotection

infrastructure); USD

1,047 million; 22%

Energy, transport, andother built

environment andInfrastructure; USD1,422 million; 30%

Institutional capacity;USD 372 million; 8%

Cross sectors & other;USD 98 million; 2%

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3. MDB MITIGATION FINANCE, 2013

The tables below (6-8) report mitigation finance: in total, by region, and by sector, using the joint MDB approachfor reporting, which is based on a common list of mitigation activities at the intersection of what all MDBsconsider mitigation. As was done for adaptation, mitigation figures reported correspond to the financing of thosecomponents and/or sub-components or elements of projects that provide mitigation benefits (rather than the

entire project cost) 10. For MDBs that report dual benefit financing separately (see Section 1.4); this table doesnot include the mitigation elements of that dual benefit financing. This is shown separately in table 10.

Table 6: MDB Mitigation Finance According to the Joint Approach, 2013 (USD millions)

MDB

MDB Resources External Resources

TOTALInvestments and

technicalassistance

Policy-basedinstruments

Investments andtechnical

assistancePolicy-basedinstruments

Public Private Public Private

AfDB 236 426 - 65 40 - 768

ADB 1,443 503 - 179 147 - 2,272

EBRD 945 2,187 - 32 78 - 3,242EIB 3,532 1,526 - - - - 5,058

IDB 535 290 60 133 78 - 1,097

IFC 85 2,396 - 9 167 4 2,662

WB 2,687 - 231 733 179 - 3,830

Sub - Total 9,464 7,329

291

1,151 689

4 18,929TOTAL 16,793 1,840

Figure 6: MDB Mitigation Finance According to the Joint Approach, 2013 (USD millions)

10 Refer to Section 2.4 for details of mitigation methodology and sectors and sub-sectors for mitigation finance.

AfDB; USD 768 million;4%

ADB; USD 2,272million; 12%

EBRD; USD 3,242million; 17%

EIB; USD 5,058 million;27%

IDB; USD 1,097 million;6%

IFC; USD 2,662 million;14%

WB; USD 3,830 million;20%

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Table 7: MDB Mitigation Finance by Region 11 , 2013 (USD millions)

REGION

MDB Resources External Resources

TOTALInvestments and

technical assistance Policy-basedinstruments

Investments andtechnical assistance Policy-based

instruments

Public Private Public Private

SOUTH ASIA 1,399 514 50 120 30 1 2,113

EAST ASIA AND THE PACIFIC 1,482 798 35 644 276 1 3,236

MIDDLE EAST AND NORTH AFRICA 416 47 - 7.5 1.6 0 472

SUB-SAHARAN AFRICA 694 1,204 7 92 107 0 2,105

LATIN AMERICA and the CARIBBEAN 1,016 826 189 162 137 1 2,332

EU 13 1,973 1,232 - 28 12 - 3,244

NON -EU EUROPE AND CENTRAL ASIA 2,403 2,218 10 70 105 0 4,807

REGIONAL 81 490 - 28 20 1 620

Sub -Total 9,464 7,329291

1,151 6894 18,929TOTAL 16,793 1,840

Figure 7: MDB Mitigation Finance by Region, 2013 (USD millions)

11 Refer to Section 2.2 for regional breakdown.

SOUTH ASIA, USD

2,113 million, 11%

EAST ASIA AND THEPACIFIC, USD 3,236

million, 17%

MIDDLE EAST ANDNORTH AFRICA, USD

472 million, 3%

SUB-SAHARANAFRICA, USD 2,105

million, 11%LATIN AMERICA andthe CARIBBEAN, USD

2,332 million, 12%

EU 13, USD 3,244million, 17%

NON -EU EUROPEAND CENTRAL ASIA,USD 4,807 million,

26%

REGIONAL , USD 620million, 3%

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Table 8: MDB Mitigation Finance by Sectors, 2013 (USD millions)

SECTOR

MDB Resources External Resources

TOTALInvestments and

technicalassistance

Policy-basedinstruments

Investments andtechnical

assistancePolicy-basedinstruments

Public Private Public Private

Energy Efficiency 2,541 1,568 37 105 67 3 4,321

Renewable Energy 2,355 1,891 51 196 324 1 4,818

Transport 3,580 593 6 51 - 0 4,230

Agriculture, forestry and land use 256 270 12 168 9 0 715

Waste and Waste Water 180 48 2 19 1 - 249

Cross-sector activities and others 342 489 183 609 191 - 1,814

EE and RE financing through financial intermediaries 211 2,470 - 3 98 0 2,781

Sub - Total 9,464 7,329

291

1,151 689

4

18,929

TOTAL 16,793 1,840

Figure 8: MDB Mitigation Finance by Sectors, 2013 (USD millions)

Energy Efficiency; USD4,321 million; 23%

Renewable Energy;USD 4,818 million; 25%Transport; USD 4,230

million; 22%

Agriculture, forestryand land use; USD 715

million; 4%

Waste andwastewater; USD 249

million; 1%

Cross-sector activitiesand others; USD 1,814

million; 10%

EE and RE financingthrough financial

intermediaries; USD2,781 million; 15%

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MDB Mitigation Finance outside the joint methodology

The joint mitigation methodology is a list of mitigation activities at the intersection of what all MDBs considermitigation. However, some MDBs consider additional activities not covered by the joint approach as mitigation,for their own reporting.

For 2013, ADB, IDB, IFC and WB reported different figures according to their internal mitigation finance tracking

approach. The IDB has an internal methodology which covers climate change, sustainable energy andenvironmental sustainability and is therefore not directly comparable to the figures reported under the jointMDB approach (see footnote) 12 . Table 9 below shows volumes the other MDBs counted outside the jointapproach according to their own internal methodologies and differences from the MDB joint approach.

Table 9: Mitigation Finance showing differences from MDB joint methodology 13

MDB

MDB Resources External Resources

TotalInvestment and

technical assistance Policy-basedinstruments

Investment andtechnical assistance Policy-based

instrumentsPublic Private Public Private

ADB's mitigation finance as per its

internal methodology 1,554 520 180 162 2,415ADB's mitigation finance as per MDB

methodology 1,443 503 - 179 147 - 2,272

Difference 111 16 2 15 144IFC mitigation finance as per its

internal methodology 85 2,415 - 9 167 4 2,681IFC mitigation finance as per MDB

methodology 85 2,396 - 9 167 4 2,662

Difference 20 20WB mitigation finance as per its

internal methodology 2,930 - 231 733 179 - 4,073WB mitigation finance as per MDB

methodology 2,687 - 231 733 179 - 3,830

Difference 243 243

12 The IDB has an internal methodology to quantify how it meets its lending target under its 9th general capital increase andincorporates projects related to climate change, sustainable energy and environmental sustainability. Under thismethodology, IDB has reported USD 2.9 billion that is not comparable to MDB numbers because: the IDB internalmethodology a) accounts exclusively for loans, b) counts the full loan amount, rather than only climate components, and c)includes sustainable energy and environmental sustainability.13 Differences include, for example, wider interpretation of a) EE projects and b) mitigation transport projects.

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4. FINANCE WITH DUAL ADAPTATION AND MITIGATION BENEFITS, 2013

MDBs recognise that some components and/or sub-components or elements within projects contribute to bothmitigation and adaptation (thereby having dual benefits: adaptation and mitigation 14). Because this financing isimportant, albeit currently a small volume of climate finance, it has been decided to report it separately whereMDB systems allow.

For the 2012 finance report, MDBs did identify the components with dual benefits. MDBs, depending on theirinternal reporting system, decided to split the figures between mitigation and adaptation and add the assignedfigures to either mitigation or adaptation tables. This was done so that the adaptation and mitigation figurescould be added together, to give a climate finance total with no double counting.

For this year, ADB, EBRD and IDB have highlighted dual benefit figures separately according to their internalsystems and this is therefore reported in table 10. The other MDBs, not listed in table 10, when financingprojects of this nature, have split the financed amount between mitigation and adaptation (and included this inthe tables in Sections 1.2 and 1.3). In both cases there is no double counting. Examples are given below todemonstrate the two accounting methods.

Table 10: MDB Finance with dual adaptation and mitigation benefit figures 2013 (USD millions)

MDB

MDB Resources External Resources

TotalInvestmentsand technical

assistancePolicy-basedinstruments

Investmentsand technical

assistancePolicy-basedinstruments

Public Private Public Private

ADB 2.1 0.0 0.0 14.1 0.0 0.0 16.2

EBRD 16.1 15.3 0.0 0.0 0.0 0.0 31.3

IDB 0.2 0.8 0.0 1.3 0.0 0.0 2.2

TOTAL 34.4 0.0 15.3 0.0 49.7

Illustrative examples of different accounting approaches for dual benefit financeProject Afforestation and Erosion ControlSector Forestry

Climate vulnerability context andintent to address climate change

impacts

The project is an afforestation project, (mitigation category 6.1.1).Its intent is also to provide erosion control and slope stability in response toincreased climate risk, meeting MDB methodology for adaptation. Therefore, it isintended to deliver the dual benefit of both climate mitigation and adaptation.The project was considered 100% climate finance (MDB loan USD 150 million).

Accounting method 1 Accounting method 2Loan split 50/50 between adaptation(USD 75 M) and mitigation (USD 75 M)and included within the concerned

MDB’s adaptation and mitigationfigures respectively and reported in therelevant adaptation and mitigationtables.Nothing would be reported in table 10.

The entire loan amount was reportedseparately as finance with dualadaptation and mitigation benefits.

The entire loan amount would bereported in table 10.

14 Examples could include: a) an afforestation project to prevent slope erosion in an area with increased risk of flash floods(whole project has both mitigation and adaptation benefits), or b) the incremental cost of adding climate resilience to arenewable energy project (the whole project is mitigation and the incremental cost is adaptation).

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SECTION 2: GENERAL

1. DEFINITIONS:

Reporting period: Data covers fiscal year 2013. Even though MDBs do not follow the same reportingcycle, data remains comparable across MDBs as they all correspond to a 12-month period. Point of reporting: Data corresponds to commitments at time of Board approval or financial agreement

signature, and are therefore based on ex-ante estimation. All due efforts have been taken to preventdouble counting. No corrections will be issued in cases where a project’s scope has changed to eitherincrease or decrease climate financing.

Sources covered: MDBs’ own resources as well as a range of external resources managed by the MDBs. Public and private: this is based on the status of the first recipient/borrower of the MDB finance. The

first recipient /borrower is to be considered public when at least 50% is publically owned 15 . Financing instruments: All instruments associated with the resources covered (grant, loan, guarantee,

equity, performance-based instrument). Comparability: The numbers in this report are comparable with the ones in the 2012 report but not

comparable to the ones in the 2011 report due to different geographic categories. Extrapolation of data: Given that the MDBs’ climate finance numbers are for only one year they should

not be used to make any extrapolations about the MDBs’ level of engagement in climate finance. External resources: refers to trust-funded operations (including dedicated climate finance facilities)

which might be reported to the OECD’s Development Assistance Committee by the contributor countries as well.

Policy-based instruments: fast-disbursing financing instruments provided to the national budget in theform of loans or grants together with associated policy dialogue and economic and sector work insupport of nationally driven policy and institutional reforms.

Investments and technical assistance: relates to all vehicles used by MDB clients to support specificinvestments covering a mix of capital and recurrent expenditures as well as advisory services andcapacity building .

Granularity: Finance reported covers only those components (and/or sub-components to the extentdata is available) or elements with activities that directly contribute to (or promote) adaptation and/ormitigation.

Reporting: Reporting is complete for all fields and all tables, i.e. if a value in a table is ‘0’ then the valueis below 0.5m and if the value is ‘-‘ this means nothing was reported. As all finance figures are roundedto the nearest USD million or USD hundred thousand, tables summed by hand may not give the exactresult shown as the total figures in the tables.

15 It is acknowledged that this is a complicated topic and that the status of the first recipient/borrower may not be the sameas the final beneficiary/borrower. For example: loan to national development bank for EE in SMEs. This is particularlycomplicated when there is a public private partnership (PPP).

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2. GEOGRAPHICAL COVERAGE OF THE REPORT, AND REGIONAL BREAKDOWNSCountries included in this list are all countries covered by at least one of the MDBs reporting. Inclusion ofcountries in this list does not imply any recognition of country names, borders, etc. by any of the MDBs inquestion.

SOUTH ASIAAfghanistan India Pakistan Bangladesh Maldives Sri Lanka Bhutan Nepal

EAST ASIA AND THE PACIFICCambodia Marshall Islands Samoa People’s Republic of China Micronesia (Federated States of) Solomon Islands Cook Islands Mongolia ThailandFiji Myanmar Timor-Leste Indonesia Nauru Tonga Kiribati Palau Tuvalu

Lao People’s Democratic Republic Papua New Guinea Vanuatu Malaysia Philippines Vietnam

MIDDLE EAST AND NORTH AFRICAAlgeria Jordan Syria Egypt Lebanon Tunisia Iran (Islamic Republic of) Libya Western Sahara Iraq Morocco YemenIsrael Gaza/West Bank

SUB-SAHARAN AFRICAAngola Gambia Réunion Benin Ghana RwandaBotswana Guinea São Tomé and Príncipe Burkina Faso Guinea-Bissau Saint Helena Burundi Kenya Senegal Cameroon Lesotho Seychelles Cape Verde Liberia Sierra LeoneCentral African Republic Madagascar South Africa Chad Malawi Somalia Comoros Mali South Sudan Congo Mauritania Sudan Côte d’Ivoire Mauritius Swaziland Democratic Republic of the Congo Mayotte TogoDjibouti Mozambique Uganda Equatorial Guinea Namibia United Republic of Tanzania Eritrea Niger Zambia Ethiopia Nigeria ZimbabweGabon

LATIN AMERICA AND THE CARIBBEAN Anguilla Dominica PanamaAntigua and Barbuda Dominican Republic ParaguayArgentina Ecuador PeruAruba El Salvador Puerto Rico

Bahamas Falkland Islands (Malvinas) Saint-BarthélemyBarbados French Guiana Saint Kitts and NevisBelize Grenada Saint Lucia

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Bolivia (Plurinational State of) Guadeloupe Saint Martin (French part)Bonaire, Saint Eustatius and Saba Guatemala Saint Vincent and the GrenadinesBrazil Guyana Saint Maarten (Dutch part)British Virgin Islands Haiti SurinameCayman Islands Honduras Trinidad and TobagoChile Jamaica Turks and Caicos IslandsColombia Martinique United States Virgin IslandsCosta Rica Mexico UruguayCuba Montserrat Venezuela (Bolivarian Republic of)Curaçao Nicaragua

EU 13 Bulgaria Hungary RomaniaCroatia Latvia SlovakiaCyprus Lithuania SloveniaCzech Republic MaltaEstonia Poland

NON-EU EUROPE AND CENTRAL ASIA16 Albania Kyrgyz Republic TurkeyArmenia Kosovo TajikistanAzerbaijan Montenegro TurkmenistanBelarus Republic of Moldova UkraineBosnia and Herzegovina Russian Federation UzbekistanGeorgia SerbiaKazakhstan The Former Yugoslav Republic of

Macedonia

REGIONAL

Any operation by an MDB that is implemented across two or more countries including activities with a globalfocus

16 Previously reported “ (OTHER) Europe and Central Asia ”.

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3. GUIDANCE SECTION ON THE ADAPTATION FINANCE TRACKING

METHODOLOGY

1) Background and guiding principles

The MDB climate adaptation finance tracking methodology uses a context- and location-specific, conservativeand granular approach that is intended to reflect the specific focus of adaptation activities, and reduce the scopefor over-reporting of adaptation finance against projects. The approach drills down into the ‘sub -project' or'project element' level as appropriate, in line with the overall MDB climate finance tracking methodology. It alsoemploys a clear process in order to ensure that project activities address specific climate vulnerabilities identifiedas being relevant to the project and its context/location.

2) Overview of the adaptation finance tracking methodology

The methodology comprises the following key steps: Setting out the context of climate vulnerability of the project Making an explicit statement of intent to address climate vulnerability as part of the project Articulating a clear and direct link between the climate vulnerability context and the specific project

activities

Furthermore, when applying the methodology, the reporting of adaptation finance is limited solely to thoseproject activities (i.e. projects, project components, or proportions of projects) that are clearly linked to theclimate vulnerability context.

a. Context of vulnerability to climate variability and change

For a project to be considered as contributing to adaptation, the context of climate vulnerability needs to be setout clearly using a robust evidence base. This could take a variety of forms, including the use of material fromexisting analyses and reports, or original, bespoke climate vulnerability assessment analysis carried out as part ofthe preparation of a project.

Examples of good practice in the use of existing analyses or reports include using sources that are authoritative

and preferably peer-reviewed, such as academic journals, National Communications to the UNFCCC, IPCCreports, Strategic Programmes for Climate Resilience, etc.

Examples of good practice in conducting original, bespoke analysis include using records from trusted sourcesshowing vulnerable communities or ecosystems particularly vulnerable to climate change as well as recentclimate trends including any departures from historic means. These may be combined with climate changeprojections drawn from a wide range of climate change models, with high and low GHG emissions scenarios, inorder to explore the full envelope of projected outcomes and uncertainties. Climate projection uncertaintiesshould be presented and interpreted in a transparent way. The timescale of the projected climate changeimpacts should match the intended lifespan of the assets, systems or institutions being financed through theproject (e.g. time horizon of 2030, 2050, 2080, etc.).

b. Statement of purpose or intent

The project should set out how it intends to address the context- and location-specific climate changevulnerabilities, as set out in existing analys es, reports or in the project’s climate vulnerability assessment. This isimportant for making the distinction between a project contributing to climate change adaptation and a standard‘good development’ project. The methodology is flexible about exactly where/how the statement ofintent/purpose is documented. As long as the MDB concerned is able to record and track the rationale for eachadaptation project or adaptation component of a project linked to the context of climate vulnerabilityestablished above, this could be documented in the final technical document, Board document, or an internalmemo, or other associated project document.

c. Clear and direct link between climate vulnerability and project activities

In line with the principles of the overall MDB climate finance tracking methodology, only the specific projectactivities that explicitly address climate vulnerabilities identified in the project documentation are reported asclimate finance. Where climate change adaptation is incorporated into project activit ies that also have otherobjectives, the estimated incremental or proportional cost of adaptation is counted. This approach may also be

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applied to project preparation activities if appropriate, depending on the standard practices of the specific MDBin question .

3) Reporting of project activities with dual benefits

Where the same project, sub-project or project element contributes to climate mitigation and adaptation, thenthe MDB’s individual processes will determine what proportion is counted as mitigation or as adaptation, so thatthe actual financing will not be recorded more than once. Some MDBs are reporting projects where the samecomponents or elements contribute to both mitigation and adaptation as a separate category (table 10). TheMDBs are continuing to work on the best reporting method for projects where the same components orelements contribute to both mitigation and adaptation.

Table 11: Adaptation Sectors and Examples of Sub-Sectors

Sectors Grouping 17 Examples of Specific Sub-sectors

Water & Wastewater Systems

Water supplies

Wastewater infrastructure

Water resources management not included under “Other ”

Agricultural & Ecological Resources

Primary agriculture & food production

Agricultural irrigation

Forestry

Livestock production

Fishing

Ecosystems (including ecosystem-based flood protection measures)

Industry, Extractive Industries, Manufacturing & Trade

Manufacturing

Food processing distribution & retail

Trade

Extractive industries (oil, gas, mining, etc.)

Coastal and Riverine Infrastructure (including builtflood protection infrastructure) 18

Energy, Transport, and other Built Environment andInfrastructure

ConstructionTransport

Urban development

Tourism 19

Waste management

Energy generation (including renewables)

Energy transmission and distribution

Institutional CapacityTechnical services or other professional support to beneficiaryorganisationsICT hardware and software to beneficiary organisations

Cross Sectors and Other

Financial services (banking, insurance)

Human capacity (education, health)

Disaster risk managementCross-sector policy and regulation

17 This year’s report shows a slightly different grouping of the adaptation sectors from the 2012 report. Two sub-sectors weremoved to the main sector column, namely Coastal and Riverine Infrastructure and Institutional Capacity, which previouslyhad been included as sub-sectors in categories: Energy, transport, and other built environment and infrastructure, and Crosssectors and Other respectively. These sub-sectors have been dominating the adaptation breakdown figures for three years2011/2012/2013 and thus it was felt they should be reported separately.18 Natural flood protection, e.g. mangrove restoration, is normally included under “Ecosystems (including ecosystem -basedflood protection measures)” .19 Tourism is included in this category as the sector essentially revolves around ‘built environment’, e.g. hotels, transportfacilities.

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Table 12: Indicative Examples of Climate Resilience Activities by Sub-Sector

Potential sectors Potential impact of climate change Potential adaptation activity

Financial services Increased strain on banking sectors as clientsexperience climate impacts

Creation of dedicated financing mechanisms topromote the uptake of climate resilient technologies

ICT (Hardware) Damage to key national data centres from storms orfloods

Identification of sites at greatest risk andenhancement of resilience of those sites

Manufacturing Historic specifications for equipment inappropriateunder new climate

Design of climate resilient equipment, e.g. stablecranes for harbours in cyclone zones

Trade Disruption of national trade due to climate disasters Local government support for business continuityplanning amongst local employers

Professional services Increase in the demand for professional services forclimate risk assessment

Provision of finance to SMEs providing relevantservices, e.g. engineering or insurance

Education Climate change results in technical syllabus isoutdated for high risk sectors

Technical capacity building for training the trainersin water and agri-sectors

Construction Shift in zones affected by typhoons/ hurricanes/stormsurges

More robust building regulations and improvedenforcement practices

Oil, gas, mining Shift in zones affected by typhoons/ hurricanes Increased intensity of seismic survey and offshoredrilling outside hurricane seasons

Health Changing patterns of diseases as a result of changingclimatic conditions

Monitoring of changes in disease outbreaks anddevelopment of a national response plan

Disaster risk management Increased frequency and/or intensity of climaterelated disasters

Financial assistance for improved planning ofgovernment bodies/NGOs integrating climatechange scenarios in their planning activities.

Water resources Reduction in river water levels due to reduced rainfall Improved catchment management planning andregulation of abstraction

(Waste) water infrastructure Increased groundwater salinity due to sea level riseand/or coastal flooding

Provision of microfinance for domestic rainwaterharvesting equipment and storage

Waste management Increased risk of pollution of areas below landfill sitesdue to risk of flood

Completion of a climate risk assessment prior tolocation of landfill sites

Fossil fuel energy generation Increased seasonality of rainfall, creating periods oflow river flows

Investment in coal fired generators with minimalcooling water requirements

Renewable energy Reduction in river flows lead to loss of generationfrom hydroelectric plant

Hydro-infrastructure subject to due diligence againstclimate and hydrological models

Transmission and distribution Higher temperatures reduce distribution efficiency Investment in embedded renewable generation toreduce distribution requirements

Tourism Drought disrupts mammal migrations and causeslarge scale starvation

Diversification of tourist attractions to encompassbiodiversity/conservation

Transport More extreme river flows cause erosion ofembankments and loss of bridges

Use of revised recurrence intervals for extremeevents in infrastructure design

Ecosystems Drought causes loss of forest cover with impacts onlivelihoods/biodiversity

Identification of protected areas and establishmentof migration corridors for at-risk ecosystems ’ wildlife (animals)

Forestry Increased frequency of forest fires Engagement with local communities to limit thesource, and improved forest fire management

Agriculture Increased variability in crop productivity Provision of information on crop diversificationoptions, with assessment of costs Livestock production Loss of forage quantity or quality Increased production of fodder crops to supplement

rangeland diet Fishing Loss of river fish stocks due to changes in water flows

and/or temperatureAdoption of sustainable aquaculture techniques tosupplement local fish supplies

Urban development Increased urban flooding from extreme rainfall events Asset review to identify assets vulnerable toincreased flooding, then prioritise protection works

4) Adaptation case studies

The following case studies are intended to illustrate how the adaptation finance tracking approach has been

recently used by MDBs.

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2 2

P r o j e c t

F o c u s

C l i m a t e R e s i l i e n c e

S o c i a l P r o t e c t i o n S y s t e m

A r i v e r

b a s i n i m p r o v e m e n t p r o j e c t

R o a d s y s t e m

i m p r o v e m e n t i n v e s t m e n t

S e c t o r

A g r i c u l t u r e a n d E c o l o g i c a l R e s o u r c e s

C r o s s s e c t o r s a n d O t h e r

/ H u m a n c a p a c i t y

( e d u c a t i o n , h e a l t h )

W a t e r a n d W a s t e w a t e r S y s t e m s

( w a t e r r e s o u r c e s

m a n a g e m e n t )

E n e r g y , t r a n s p o r t , a n d o t h e r

b u i l t e n v i r o n m e n t

a n d I n f r a s t r u c t u r e

( T r a n s p o r t )

B r i e f

d e s c r i p t i o n

o f p r o j e c t

T h e p r o j e c t a i m s t o

f o s t e r f o o d s e c u r i t y ,

s u s t a i n e d g r o w t h a n d p o v e r t y r e d u c t i o n

b y s t r e n g t h e n i n g t h e c l i m a t e c h a n g e

a d a p t i v e c a p a c i t y o f a b o u t 8 0 0

, 0 0 0

p e o p l e i n a r e g i o n t h a t

d e p e n d s o n r a i n -

f e d a g r i c u l t u r e

f o r t h e i r s u b s i s t e n c e .

M o r e

s p e c i f i c a l l y

t h e

p r o j e c t

w i l l

s t r e n g t h e n t h e c a p a c i t y o f c o m m u n i t i e s

t o c o p e w i t h

f l o o d s a n d

d r o u g h t s .

T h e p r o g r a m m e i s a

d e v e l o p m e n t p o l i c y

l o a n

w i t h 8 p r i o r a c t i o n s

f o c u s i n g o n 5 m a i n t h e m e s

o f s u p p o r t n a m e l y :

( i ) s t r e n g t h e n i n g p o l i c y

d e v e l o p m e n t a n d m a n a g e m e n t c a p a c i t y o f t h e

s o c i a l p r o t e c t i o n

( S P ) s e c t o r ;

( i i ) i n t e g r a t i n g

m a n a g e m e n t i n f o r m a t i o n s y s t e m s

( M I S )

f o r

t h e m a i n s o c i a l p r o t e c t i o n p r o g r a m m e s ;

( i i i )

e s t a b l i s h i n g o p e r a t i o n a l

l i n k s b e t w e e n s o c i a l

p r o t e c t i o n a n d e a r l y w a r n i n g s y s t e m s , w i t h t h e

u l t i m a t e o b j e c t i v e o f

“ c l i m a t e - p r o o f i n g ” s o c i a l

p r o t e c t i o n p r o g r a m m e s ; a n d

( i v ) e x p a n d i n g t h e

c o v e r a g e a n d e n h a n c i n g t h e

h a r m o n i s a t i o n o f

s o c i a l p r o t e c t i o n i n t e r v e n t i o n s i n t h e c o u n t r y .

T h e p r o j e c t a i m s t o i m p r o v e w a t e r s e c u r i t y a n d

r e s i l i e n c e t o p o t e n t i a l c l i m a t e c h a n g e i m p a c t . T h e

p r o j e c t w i l l

f i n a n c e t h e c o n s t r u c t i o n o f u p s t r e a m

w a t e r s t o r a g e , r i v e r b e d o x y g e n a t i n g w e i r s , r i v e r b a n k

b e a u t i f i c a t i o n , a n d c o m m u n i t y i n i t i a t i v e s t o i m p r o v e

t h e r i v e r e n v i r o n m e n t . T h e p r o j e c t w i l l a l s o s u p p o r t

t h e e s t a b l i s h m e n t o f a r i v e r

b a s i n o r g a n i s a t i o n w i t h

a d e q u a t e c a p a c i t y a n d

d e c i s i o n s u p p o r t s y s t e m s

f o r

i n t e g r a t e d w a t e r r e s o u r c e s m a n a g e m e n t ( I W R M

) .

T h e p r o j e c t a i m s t o e n h a n c e c o n n e c t i v i t y a c r o s s

p r o v i n c e s t h r o u g h t h e c o n s t r u c t i o n o f t w o m a j o r

b r i d g e s , a r o a d c o n n e c t i n g t h e t w o

b r i d g e s , a n d

a p p r o a c h r o a d s .

C l i m a t e

v u l n e r a b i l i t y

c o n t e x t

A c c o r d i n g

t o

a

c l i m a t e

c h a n g e

a s s e s s m e n t m a d e

b y t h e c o n c e r n e d

c o u n t r y ’ s g o v e r n m e n t , t h e r e i s i n c r e a s i n g

i n t e n s i t y o f

f l o o d s a n d

d r o u g h t s . T h i s i s

p r o j e c t e d t o w o r s e n i n c o m i n g

d e c a d e s .

O v e r t h e

l a s t t h r e e

d e c a d e s , f l o o d s a n d

d r o u g h t s a r e e s t i m a t e d t o

h a v e c o s t t h e

c o u n t r y

0 . 4 %

o f a n n u a l e c o n o m i c

g r o w t h . T h e p r o j e c t

d o c u m e n t o u t l i n e s

t h i s e v i d e n c e a s t h e

b a s i s f o r t h e p r o j e c t

a c t i o n .

T h e g o v e r n m e n t o f t h e c o u n t r y c o n c e r n e d

h a s

r e c o g n i s e d t h e i m p a c t t h a t c l i m a t e r i s k s c a n

h a v e o n

l i v e l i h o o d s a n d t h e p r o d u c t i o n

s e c t o r s , p a r t i c u l a r l y o n a g r i c u l t u r a l p r o d u c t i o n .

T h e v a s t m a j o r i t y o f t h e p o p u l a t i o n r e l i e s

p r i m a r i l y

o n

r a i n - f e d

a g r i c u l t u r e

f o r

s u b s i s t e n c e , m a k i n g i t v u l n e r a b l e t o i n c r e a s i n g

w e a t h e r - r e l a t e d r i s k s a n d t h e e f f e c t s o f c l i m a t e

c h a n g e . T h i s

h a s b e e n a n a l y s e d i n t h e

c o u n t r y ’ s N a t i o n a l A

d a p t a t i o n P r o g r a m m e s o f

A c t i o n t o c l i m a t e c h a n g e

( N A P A

) .

A n a n a l y s i s o f

l i k e l y c h a n g e s o f t e m p e r a t u r e a n d

r a i n f a l l w a s c o n d u c t e d

d u r i n g p r o j e c t p r e p a r a t i o n t o

a p p r a i s e t h e r e s i l i e n c e o f t h e p r o p o s e d i n f r a s t r u c t u r e

i n v e s t m e n t s t o c l i m a t e c h a n g e . T h e a n a l y s i s u s e d

r e s u l t s f r o m a g e n e r a l c i r c u l a t i o n m o d e l a n d t w o

e m i s s i o n s s c e n a r i o s , a s w e l l a s r e s u l t s o f

d o w n s c a l e d

p r o j e c t i o n s d e s c r i b e d i n r e c e n t s t u d i e s . T h e a n a l y s i s

r e v e a l e d a n i n c r e a s e i n t h e a v e r a g e m e a n m a x i m u m

t e m p e r a t u r e a n d a

d e c r e a s e i n t h e a n n u a l r a i n f a l l .

C l i m a t e - i n d u c e d r i s k s t o w a t e r r e s o u r c e s

f a c i l i t i e s i n

t h e r i v e r

b a s i n i n c l u d e d

f l o o d i n g , l a n d s l i d e s a n d

s e d i m e n t a t i o n a s w e l l a s g r e a t e r u n r e l i a b i l i t y o f

d r y

s e a s o n f l o w s , a n d r i s k s t o w a t e r s u p p l i e s a n d

i r r i g a t i o n d u r i n g t h e

l e a n s e a s o n . I t w a s

f o u n d t h a t

t h e r e d u c t i o n i n r a i n f a l l

d u r i n g t h e

f i r s t 2 0 y e a r s

w o u l d n o t a f f e c t t h e

f i l l i n g c a p a c i t y o f t h e r e s e r v o i r a s

c u r r e n t a v a i l a b l e r u n o f f w a s e s t i m a t e d a t 1 6 0 % o f

r e s e r v o i r c a p a c i t y . V a r i a t i o n s

f r o m y e a r - t o - y e a r w e r e

p r o j e c t e d t o i n c r e a s e w i t h m o r e e x t r e m e s . T h e r e f o r e ,

r e g u l a t i o n

t h r o u g h

r e s e r v o i r s w a s r e q u i r e d

t o

m a i n t a i n t h e

f l o w i n t h e r i v e r

d u r i n g t h e

d r y s e a s o n .

T h e p r o j e c t i s

l o c a t e d i n a c o a s t a l a r e a i d e n t i f i e d a s

o n e o f t h e w o r l d ’ s m o s t v u l n e r a b l e r e g i o n s t o

c l i m a t e c h a n g e . A n a n a l y s i s o f r e g i o n a l a s s e s s m e n t

s h o w e d t h a t p r e d i c t e d r e g i o n a l c h a n g e s i n c l i m a t e

i n c l u d e

i n c r e a s e d

i n t e n s i t y

o f p r e c i p i t a t i o n ,

h i g h e r s t o r m

s u r g e s a n d s e a - l e v e l r i s e . T h e s e

c h a n g e s w o u l d r e s u l t i n i n c r e a s e s i n

b o t h t h e

m a g n i t u d e a n d

f r e q u e n c y o f

f l o o d s a n d s t o r m s ,

a n d i n d u c e g r e a t e r s e a s o n a l v a r i a b i l i t y i n w e a t h e r

p a t t e r n s i n t h e p r o j e c t a r e a . T a k e n t o g e t h e r , t h e s e

r i s k s w o u l d p o t e n t i a l l y r e d u c e t h e i n t e n d e d

d e s i g n

l i f e o f t h e

l a r g e i n f r a s t r u c t u r e . A c l i m a t e r i s k a n d

v u l n e r a b i l i t y a s s e s s m e n t w a s c o n d u c t e d t o

f u r t h e r

i d e n t i f y t h e n e g a t i v e i m p a c t s o f t h e s e c h a n g e s o n

t h e p r o j e c t p e r f o r m a n c e . T h e s t u d y

f o u n d t h a t t h e

e m b a n k m e n t s o f t h e c o n n e c t i n g r o a d w e r e

v u l n e r a b l e t o t h e c o m

b i n e d i m p a c t s o f p r o j e c t e d

i n c r e a s e s i n t h e

f r e q u e n c y a n d i n t e n s i t y o f

u p s t r e a m f l o o d i n g . P r o j e c t e d i m p a c t s i n c l u d e d : ( 1 )

e r o s i o n o f r o a d e m

b a n k m e n t s a n d s c o u r o f r o a d

f o u n d a t i o n s ; ( 2 ) w a t e r

l o g g i n g o f r o a d

f o u n d a t i o n s

l e a d i n g t o r o a d s u b s i d e n c e ; ( 3 ) r e d u c e d s t a b i l i t y o f

i n f r a s t r u c t u r e ; a n d

( 4 ) i n c r e a s e d m a i n t e n a n c e

e f f o r t .

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2 3

S t a t e m e n t

o f p u r p o s e

o r i n t e n t

T h e p r o j e c t i s

d e s i g n e d f o r c l i m a t e

c h a n g e a d a p t a t i o n i n a g r i c u l t u r e u n

d e r

t h e P i l o t P r o g r a m

f o r C l i m a t e R e s i l i e n c e

o f t h e C l i m a t e I n v e s t m e n t F u n d s ( C I F ) .

T h e p r o j e c t m e e t s t h e

f u n d i n g c r i t e r i a o f

t h e C I F o n c l i m a t e r e s i l i e n c e .

S t r o n g e r c o o r d i n a t i o n i s n e e d e d a c r o s s v a r i o u s

s e c t o r s a n d a g e n c i e s i n

d e v e l o p i n g a n d

i m p l e m e n t i n g a c o m p r e h e n s i v e a p p r o a c h t o

c l i m a t e r i s k m a n a g e m e n t t h a t i n c o r p o r a t e s

a d a p t a t i o n t o

h i s t o r i c a l c l i m a t e v a r i a b i l i t y a n d

p r o j e c t e d c l i m a t e c h a n g e a n d e f f e c t i v e l y u s e s

n e w

c l i m a t e - r e l a t e d

f i n a n c i n g . T h e p r o j e c t

s e e k s t o e n h a n c e p o o r p e o p l e ’ s c a p a c i t y t o

c o p e w i t h s h o c k s a n d a i m s t o

d e a l p r e -

e m p t i v e l y w i t h t h e e f f e c t s o f c l i m a t e c h a n g e

b y

s t r e n g t h e n i n g p u b l i c a g e n c i e s a n d e s t a b l i s h i n g

l i n k s w i t h

d i s a s t e r r i s k m a n a g e m e n t .

D a m c o n s t r u c t i o n a n d g r o u n d w a t e r r e c h a r g e w i l l

i m p r o v e c o m m u n i t i e s ’ r e s i l i e n c e t o

d r o u g h t a n d

f l o o d . T h e

d e s i g n c a p a c i t y o f t h e i m p r o v e d r i v e r

c o r r i d o r w i l l i n t e g r a t e a n t i c i p a t e d i m p a c t s o f c l i m a t e

c h a n g e w i t h

d e s i g n s t a n d a r d s

f o r f l o o d m a n a g e m e n t .

T h e f i n d i n g s o f t h e c l i m a t e r i s k a n d v u l n e r a b i l i t y

a s s e s s m e n t

f e d

i n t o

t h e

d e s i g n

o f

t h e

i n f r a s t r u c t u r e .

T h e p r o j e c t ’ s t e c h n i c a l

d e s i g n s i n c l u d e c l i m a t e

c h a n g e a d a p t a t i o n m e a s u r e s s u c h a s i n c r e a s e d

h e i g h t f o r r o a d e m

b a n k m e n t s a n d

l a r g e r c l e a r a n c e

f o r b r i d g e s t o r e d u c e c l i m a t e c h a n g e r i s k s o n t h e

p r o j e c t .

L i n k t o

p r o j e c t

a c t i v i t i e s

A l l p r o j e c t c o m p o n e n t s c o n t r i b u t e t o t h e

c l i m a t e c h a n g e a d a p t i v e c a p a c i t y o f t h e

a f f e c t e d r e g i o n / c o m m u n i t y . T h e p r o j e c t

i n c l u d e s c o m m u n i t y - d r i v e n p a r t i c i p a t o r y

a d a p t a t i o n a n d a d a p t a t i o n p r a c t i c e s p l u s

p r o j e c t m a n a g e m e n t a c t i v i t i e s .

T h e p r o j e c t i s e s t a b l i s h i n g o p e r a t i o n a l

l i n k s

b e t w e e n s o c i a l p r o t e c t i o n a n d e a r l y w a r n i n g

s y s t e m s , w i t h

t h e u l t i m a t e o b j e c t i v e o f

c l i m a t e - p r o o f i n g

s o c i a l

p r o t e c t i o n

p r o g r a m m e s .

P r o j e c t a d a p t a t i o n m e a s u r e s i n c l u d e :

-

A c a p a c i t y

b u i l d i n g c o m p o n e n t t o

f o r m u l a t e

a d a p t i v e b a s i n m a n a g e m e n t p l a n s a n d

e s t a b l i s h a r i v e r

b a s i n o r g a n i s a t i o n w i t h t h e

a b i l i t y t o a c c o u n t

f o r t h e i m p a c t s o f c l i m a t e

c h a n g e i n t h e m a n a g e m e n t o f t h e

b a s i n ;

-

C o n s t r u c t i o n o f a n e w s t o r a g e r e s e r v o i r

w i t h i n t h e u p p e r w a t e r s h e d t o r e t a i n w e t

s e a s o n f l o w s

f o r r e l e a s e

d u r i n g t h e

d r y

s e a s o n ;

-

“ C l i m a t e - p r o o f i n g ”

t h e

d e s i g n

o f t h e

u p s t r e a m r e s e r v o i r

b y t a k i n g i n t o a c c o u n t

t h e i m p a c t s o n r i v e r

h y d r o l o g y a n d e x t r e m e

e v e n t s ;

-

E s t a b l i s h m e n t o f a

f l o o d f o r e c a s t i n g a n d

e a r l y w a r n i n g s y s t e m t o p r o v i d e a d v a n c e d

w a r n i n g o f

f l o o d e v e n t s , a n d t r a i n i n g o n

r e s p o n s e m e a s u r e s .

P r o j e c t a d a p t a t i o n m e a s u r e s i n c l u d e :

- A

d d i t i o n a l e m

b a n k m e n t v o l u m e . D u r i n g t h e

f i r s t p h a s e , a n o m i n a l i n c r e a s e o f 0 . 3 0 m i n

f i n i s h e d r o a d

l e v e l f o r l o w

- l y i n g s t r e t c h e s o f t h e

r o a d w a s c o n s i d e r e d a d e q u a t e

f o r t h e m e d i u m

t e r m ;

i n t h e

l o n g t e r m

, b e y o n d a 3 0 - y e a r

h o r i z o n , a s e c o n d p h a s e o f a d a p t a t i o n w o u l d

b e

c o n s i d e r e d a s p a r t o f

f u r t h e r m a i n t e n a n c e a n d

r o a d u p g r a d e s a n d e x p a n s i o n ;

- a d d i t i o n a l a r e a o f g r o u n d t r e a t m e n t

d u e t o

i n c r e a s e d w i d t h o f e m

b a n k m e n t ;

- a d d i t i o n a l

l e n g t h o f c u l v e r t s

d u e t o i n c r e a s e d

w i d t h o f e m

b a n k m e n t ;

- a d d i t i o n a l h e i g h t o f a b u t m e n t s a n d p i e r s o f s i x

b r i d g e s

C a l c u

l a t i o n

o f

a d a p t a t i o n

f i n a n c e

T o t a l p r o j e c t a m o u n t

( U S D 3 8 m i l l i o n )

c o n s i d e r e d c l i m a t e

f i n a n c e a d a p t a t i o n

.

O n e o f t h e 8 p r i o r a c t i o n s i s o n

“ c l i m a t e -

p r o o f i n g ”

t h e

m a i n

s o c i a l

p r o t e c t i o n

p r o g r a m m e s

d u r i n g t h e i r p r o g r a m m i n g a n d

d e s i g n a s

d i s a s t e r s a r e i n c r e a s i n g l y c a u s e d

b y

c l i m a t e - r e l a t e d

f a c t o r s . T h u s 1 / 8 o r 1 2 . 5 % o f

t h e t o t a l p r o j e c t c o s t i s a t t r i b u t e d t o c l i m a t e

c h a n g e a d a p t a t i o n

( U S D 6 . 2 5 m i l l i o n o u t o f

U S D 5 0 m i l l i o n ) .

T h e t o t a l p r o j e c t c o s t i s U S D 3 6 m i l l i o n . A

d a p t a t i o n

m e a s u r e s a r e e s t i m a t e d t o a m o u n t t o U S D 2 0 m i l l i o n

o r 5 5 . 5 % o f t h e t o t a l p r o j e c t c o s t .

T h e a d d i t i o n a l c o s t o f a d a p t a t i o n m e a s u r e s w a s

e s t i m a t e d a t U S D 4 . 5 m i l l i o n o r 0 . 5 % o f p r o j e c t

c o s t .

T y p e o

f

a d a p t a t i o n

f i n a n c e

E x t e r n a l f i n a n c e

D e v e l o p m e n t p o l i c y o p e r a t i o n

L o a n a n d g r a n t - M D B r e s o u r c e s

M D B r e s o u r c e s

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4. JOINT MDB APPROACH FOR MITIGATION FINANCE REPORTING

1) Principles of the Joint MDB Mitigation Finance Reporting

The joint MDB approach for mitigation finance reporting is based on the following principles or attributes:

a) It is activity-based , namely, it focuses on the type of activity to be executed, and not on its purpose, the originof the financial resources, or its actual results.

b) The classification is ex-ante project implementation.

c) An activity can be a project or a project component: the joint approach aims to report on mitigation activitiesdisaggregated from non-mitigation activities through a reasonable level of data granularity by dissecting projectsinto main components. For example, a project with a total cost of USD 100 million may have a USD 10 millioncomponent for energy efficiency improvements – only the USD 10 million would be reported.

d) The joint approach measures financial flows , rather than greenhouse gas (GHG) emissions reduced by theinvestment.

e) An activity can be labelled a s contributing to climate change mitigation if it promotes “efforts to reduce or

limit greenhouse gas (GHG) emissions or enhance GHG sequestration.”20

In the absence of a commonly agreedmethod for GHG analysis among MDBs, mitigation activities considered in this joint approach are assumed tolead to emission reductions, based on past experience and/or technical analysis. Ongoing efforts to harmoniseGHG analysis among MDBs should bring more consistency regarding the identification of many mitigationactivities in the long term.

f) The purpose of this joint approach is to establish practical , harmonised climate finance classification categorieswithout having to resort to long, complex studies or highly specialised experts.

g) The qualification of a project under this methodology does not imply specific evidence of its climate changeeffects. Inclusion is not a substitute for project-specific theoretical and/or quantitative evidence of GHGemissions mitigation, and projects seeking to demonstrate such effects must do so through project-specific data.

h) Where the same project, sub-project or project element contributes to climate mitigation and adaptation,then the MDB’s individual processes will determine what proportion is co unted as mitigation or as adaptation, sothat the actual financing will not be recorded more than once. Some MDBs are reporting projects where thesame components or elements contribute to both mitigation and adaptation as a separate category (table 10).The MDBs are working on the best reporting method for projects where the same components or elementscontribute to both mitigation and adaptation.

20 OECD DAC. Definition of the Rio Marker on climate change mitigation: http://bit.ly/RioMit .

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2) Typology of Mitigation Activities included in the Joint MDB Mitigation Finance Reporting

1. Demand-side, brownfield energy efficiency 21 1.1. Commercial and residential sectors (buildings)

1.1.1. Energy-efficiency improvement in lighting, appliances and equipment 1.1.2. Substitution of existing heating/cooling systems for buildings by cogeneration plants that

generate electricity in addition to providing heating/cooling 22 1.1.3. Retrofit of existing buildings: Architectural or building changes that enable the reduction of

energy consumption1.1.4. Waste heat recovery improvements

1.2. Public services1.2.1. Energy-efficiency improvement in utilities and public services through the installation of more

efficient lighting or equipment1.2.2. Rehabilitation of district heating systems1.2.3. Utility heat loss reduction and/or increased waste heat recovery1.2.4. Improvement in utility-scale energy efficiency through efficient energy use and loss reduction.

1.3. Agriculture1.3.1. Reduction in energy use in traction (e.g. efficient tillage), irrigation and other agricultural

processes1.4. Industry

1.4.1. Industrial energy-efficiency improvements through the installation of more efficient equipment,changes in processes, reduction of heat losses and/or increased waste heat recovery

1.4.2. Installation of cogeneration plants1.4.3. More efficient facility - replacement of an older facility (old facility retired)

2. Demand-side, greenfield energy efficiency 23 2.1. Construction of new buildings

2.1.1. Use of highly efficient architectural designs or building techniques that enable the reduction ofenergy consumption for heating and air conditioning, exceeding available standards andcomplying with high energy efficiency certification or rating schemes

3. Supply-side, brownfield energy efficiency3.1. Transmission and distribution systems

3.1.1. Retrofit of transmission lines or substations to reduce energy use and/or technical losses,excluding capacity expansion

3.1.2. Retrofit of distribution systems to reduce energy use and/or technical losses, excluding capacityexpansion

3.1.3. Improving existing systems to facilitate the integration of renewable energy sources into the grid 3.2. Power plants

3.2.1. Renewable energy power plant retrofits3.2.2. Energy-efficiency improvement in existing thermal power plant3.2.3. Thermal power plant retrofit or replacement 24to fuel; switch from a more GHG-intensive fuel to a

different, less GHG-intensive fuel type 25 3.2.4. Waste heat recovery improvements

4. Renewable Energy4.1. Electricity generation, greenfield projects

4.1.1. Wind power4.1.2. Geothermal power4.1.3. Solar power (concentrated solar power, photovoltaic power)4.1.4. Biomass or biogas power that does not decrease biomass and soil carbon pools

21 The general principle for brownfield energy efficiency activities involving substitution of technologies or processes is that (i)the old technologies are substituted well before the end of their lifetime and the new technologies are substantially moreefficient, or (ii) new technologies or processes are substantially more efficient than those normally used in greenfieldprojects.22 At higher energy efficiency than separate production. 23 The general principle for greenfield activities is that they prevent a long-term lock-in in high-carbon infrastructure (urban,transport and power sector infrastructure).24 Replacement is included only when the owner of the plants is the same and has contractually agreed to close the oldplant(s) with an equivalent capacity (when the new one(s) is commissioned) and to feed the same electricity system.25 Excluding replacement of coal by coal.

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4.1.5. Ocean power (wave, tidal, ocean currents, salt gradient, etc.)4.1.6. Hydropower plants only if net emission reductions can be demonstrated

4.2. Transmission systems, greenfield4.2.1. New transmission systems (lines, substations) or new systems (e.g. new information and

communication technology, storage facility, etc.) to facilitate the integration of renewable energysources into the grid

4.3. Heat production or other RE applications, greenfield or brownfield projects4.3.1. Solar water heating and other thermal applications of solar power in all sectors4.3.2. Thermal applications of geothermal power in all sectors4.3.3. Thermal applications of sustainably-produced bioenergy in all sectors, including efficient,

improved biomass stoves4.3.4. Wind-driven pumping systems or similar

5. Transport5.1. Vehicle energy efficiency fleet retrofit

5.1.1. Existing vehicles, rail or boat fleet retrofit or replacement (including the use of lower-carbon fuels,electric or hydrogen technologies, etc.)

5.2. Urban transport modal change5.2.1. Urban mass transit

5.2.2. Non-motorised transport (bicycles and pedestrian mobility)5.3. Urban development

5.3.1. Integration of transport and urban development planning (dense development, multiple land use,walking communities, transit connectivity, etc.), leading to a reduction in the use of passengercars

5.3.2. Transport demand management measures to reduce GHG emissions (e.g. speed limits, high-occupancy vehicle lanes, congestion charging/road pricing, parking management, restriction orauctioning of license plates, car-free city areas, low-emission zones) 26

5.4. Inter-urban transport and freight transport5.4.1. Improvement of general transport logistics to increase energy efficiency of infrastructure and

transport, e.g. reduction of empty running5.4.2. Railway transport ensuring a modal shift of freight and/or passenger transport from road to rail

(improvement of existing lines or construction of new lines)5.4.3. Waterways transport ensuring a modal shift of freight and/or passenger transport from road towaterways (improvement of existing infrastructure or construction of new infrastructure)

6. Agriculture, forestry and land use6.1. Afforestation and reforestation

6.1.1. Afforestation (plantations) on non-forested land 6.1.2. Reforestation on previously forested land

6.2. Reducing emissions from the deforestation or degradation of ecosystems6.2.1. Biosphere conservation projects (including payments for ecosystem services)

6.3. Sustainable forest management6.3.1. Forest management activities that increase carbon stocks or reduce the impact of forestry

activities

6.4. Agriculture6.4.1. Agriculture projects that do not deplete and/or improve existing carbon pools (reduction infertilizer use, rangeland management, collection and use of bagasse, rice husks, or otheragricultural waste, low tillage techniques that increase carbon contents of soil, rehabilitation ofdegraded lands, etc.)

6.5. Livestock6.5.1. Livestock projects that reduce methane or other GHG emissions (manure management with

biodigestors, etc.)6.6. Biofuels

6.6.1. Production of biofuels (including biodiesel and bioethanol)7. Waste and wastewater

7.1. Solid waste management that reduces methane emissions (e.g. incineration of waste, landfill gascapture, and landfill gas combustion)

26 General traffic management is not included. This category is for demand management to reduce GHG emissions, assessedon a case by case basis.

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7.2. Treatment of wastewater if not a compliance requirement (e.g. performance standard or safeguard) aspart of a larger project including the reduction of methane emissions

7.3. Waste recycling projects that recover or reuse materials and waste as inputs into new products or as aresource

8. Non-energy GHG reductions8.1. Industrial processes

8.1.1. Reduction of GHG emissions resulting from industrial process improvements and cleanerproduction (e.g. cement, chemicals)

8.2. Air conditioning and cooling8.2.1. Retrofit of existing industrial, commercial and residential infrastructure to switch to cooling agent

with lower global warming potential8.3. Fugitive emissions and carbon capture

8.3.1. Carbon capture and storage projects (including enhanced oil recovery)8.3.2. Reduction of gas flaring or methane fugitive emissions in the oil and gas industry8.3.3. Coal mine methane capture

9. Cross-sector activities and others9.1. Policy and regulation

9.1.1. National mitigation policy/planning/institutions

9.1.2. Energy sector policies and regulations (energy efficiency standards or certification schemes;energy efficiency procurement schemes; renewable energy policies)

9.1.3. Systems for monitoring the emission of greenhouse gases 9.1.4. Efficient pricing of fuels and electricity (subsidy rationalisation, efficient end-user tariffs, and

efficient regulations on electricity generation, transmission, or distribution),9.1.5. Education, training, capacity building and awareness raising on climate change

mitigation/sustainable energy/sustainable transport; mitigation research9.2. Energy audits

9.2.1. Energy audits for energy end-users, including industries, buildings, and transport systems9.3. Supply chain

9.3.1. Improvements in energy efficiency and GHG reductions in existing product supply chains9.4. Financing instruments

9.4.1. Carbon markets and finance (purchase, sale, trading, financing, guarantee and other technicalassistance). Includes all activities related to compliance-grade carbon assets and mechanisms,such as Clean Development Mechanism (CDM), Joint Implementation (JI), Assigned Amount Units(AAUs), as well as well-established voluntary carbon standards like the Verified Carbon Standard(VCS) or the Gold Standard.

9.4.2. Renewable energy and energy efficiency financing through financial intermediaries or similar (e.g.earmarked lines of credit; lines for microfinance institutions, cooperatives, etc.) 27

9.5. Low-carbon technologies9.5.1. Research and development of renewable energy or energy efficiency technologies9.5.2. Manufacture of renewable energy and energy efficiency technologies and products

9.6. Activities with greenhouse gas accounting9.6.1. Any other activity not included in this list for which the results of ex-ante greenhouse gasaccounting (undertaken according to commonly agreed methodologies) show emission reductionsthat are higher than a commonly agreed threshold 28

3) Mitigation case studies

The following case studies are intended to illustrate how the mitigation finance tracking approach has beenrecently used by MDBs.

27 Reported as a separate category in table 828 For this year’s report, nothing was reported under this category .

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2 8

P r o j e c t F o c u s

I r r i g a t i o n S y s t e m

E n h a n c e m e n t P r o j e c t

F o r e s t s P a r t i c i p a t o r y M a n a g e m e n t

P r o j e c t

I m p r o v e S u s t a i n a b i l i t y o f E l e c t r i c i t y S e r v i c e

U r b a n P u

b l i c T r a n s p o r t P r o j e c t

S e c t o r

D e m a n d s i d e ,

b r o w n f i e l d e n e r g y

e f f i c i e n c y - A

g r i c u l t u r e ( 1 . 3 . 1 )

A g r i c u l t u r e ,

f o r e s t r y a n d

l a n d u s e

( 6 . 3 . 1 )

R e n e w a b l e E n e r g y –

S o l a r p o w e r

( 4 . 1 . 3 )

T r a n s p o r t – U r b a n m a s s t r a n s i t ( 5 . 2 . 1 )

B r i e f

d e s c r i p t i o n o

f

p r o j e c t

T h e o b j e c t i v e s o f

t h e I r r i g a t i o n S y s t e m

E n h a n c e m e n t P r o j e c t a r e :

a ) T o r e d u c e t h e a m o u n t o f e n e r g y u s e d

a n d

t o

i m p r o v e

t h e

i r r i g a t i o n

c o n v e y a n c e

e f f i c i e n c y

i n

t a r g e t e d

i r r i g a t i o n s c h e m e s ; a n d

b ) T o i m p r o v e

t h e a v a i l a b i l i t y a n d

r e l i a b i l i t y o f s e c t o r d a t a .

T h e p r o j e c t

h a s t h r e e c o m p o n e n t s e a c h

w i t h t w o s u b - c o m p o n e n t s :

1 . A C o n v e r s i o n o f p u m p - b a s e d i r r i g a t i o n

t o g r a v i t y i r r i g a t i o n ;

1 . B U p g r a d i n g o f o u t l e t a n d o t h e r c a n a l s

c o n v e y i n g p u m p e

d w a t e r .

2 . A T e c h n i c a l i n v e s t i g a t i o n s ;

2 . B

S u p e r v i s o r y

c o n t r o l a n d

d a t a

a c q u i s i t i o n ( S C A D A

) s y s t e m i n s t a l l a t i o n .

3 . A P r o j e c t m a n a g e m e n t ;

3 . B W a t e r u s e r a s s o c i a t i o n s ’ s u p p o r t .

T h e p r o j e c t a i m s t o r e d u c e

d e f o r e s t a t i o n

a n d f o r e s t d e g r a d a t i o n i n o r d e r t o

r e i n f o r c e f o r e s t s ’ c a r b o n s e q u e s t r a t i o n

c a p a c i t y t h r o u g h i m p r o v e d g o v e r n a n c e ,

e n v i r o n m e n t - f r i e n d l y

l o c a l

s o c i o -

e c o n o m i c

d e v e l o p m e n t a n d s u s t a i n a b l e

m a n a g e m e n t o f

f o r e s t r e s o u r c e s a n d

w o o d e d a r e a s . T h e p r o j e c t

h a s t h e

f o l l o w i n g c o m p o n e n t s :

R e i n f o r c e m e n t

o f

f o r e s t

g o v e r n a n c e : r e i n f o r c e m e n t o f

l e g a l f r a m e w o r k a n d

b u i l d i n g o f

a d m i n i s t r a t i v e c a p a c i t y .

P a r t i c i p a t o r y d e v e l o p m e n t a n d

m a n a g e m e n t o f t h e c o n c e r n e d

f o r e s t s : F o r e s t s e c u r i t i s a t i o n

a n d

d e v e l o p m e n t

d e m a r c a t i o n a n d c r e a t i o n o f

g a z e t t e d f o r e s t s ( 2 8 4 , 0 0 0

h a ) ;

b u i l d i n g

s t a k e h o l d e r

o p e r a t i o n a l c a p a c i t y ;

s u p p o r t

a c t i o n s

f o r

n e i g h b o u r i n g

c o m m u n i t i e s .

T h e p r o g r a m m e w i l l c o n t r i b u t e t o t h e

s u s t a i n a b i l i t y o f t h e

p o w e r s e c t o r

b y

s t r e n g t h e n i n g

t h e

N a t i o n a l

E l e c t r i c i t y

C o m p a n y ’ s

( N E C ) o p e r a t i o n a l p r o c e d u r e s

a n d

c o r p o r a t e

p e r f o r m a n c e

a n d b y

i m p r o v i n g

t h e

s u s t a i n a b i l i t y

o f

r u r a l

e l e c t r i c i t y s u p p l y . T h e s p e c i f i c o b j e c t i v e s a r e :

I )

T o

s u p p o r t

t h e

i m p l e m e n t a t i o n

o f

i n f o r m a t i o n t e c h n o l o g i e s i n

b u s i n e s s s u p p o r t t o o l s ;

I I )

T o c o n t r i b u t e t o e x p a n d i n g

e l e c t r i c i t y c o v e r a g e

b y g r i d

e x t e n s i o n

a n d

r e n e w a b

l e

e n e r g y s y s t e m s .

I I I )

T o p r o v i d e

f i n a n c i a l s u p p o r t

f o r

u p g r a d i n g

c r i t i c a l

i n f r a s t r u c t u r e .

C o m p o n e n t I I - c o n s i s t s o f :

- i ) I n t e g r a t i o n o f a s p e c i f i c g e o g r a p h i c a l a r e a

U S D 7 , 5 0 0 , 0 0 0 t o a g r i d e l e c t r i c i t y s u p p l y ,

- i i ) t h e i n s t a l l a t i o n o

f h y b r i d R E g e n e r a t i o n

t o l o c a l d i s t r i b u t i o n s y s t e m s t o i m p r o v e

s u s t a i n a b i l i t y o

f e l e c t r i c i t y s u p p

l y i n s m a l l

r u r a l t o w n

( r e g i o n a l c i v i c c e n t r e )

U S D 2 , 5 0 0 , 0 0 0

,

-

i i i )

S u p p o r t

f o r

t h e

d e s i g n

a n d

i m p l e m e n t a t i o n

o f

r u r a l e l e c t r i f i c a t i o n

p r o j e c t s –

U S D 1 , 0 0 0 , 0 0 0 .

T h e p r o j e c t w i l l s u p p o r t i m p r o v e m e n t s t o

u r b a n p u b l i c t r a n s p o r t , u r b a n

d e v e l o p m e n t

i n f r a s t r u c t u r e s c h e m e s , t h e m o d e r n i s a t i o n

o f u r b a n r o a d s a n d e d u c a t i o n

i n f r a s t r u c t u r e i n c l u d e d i n t h e i n v e s t m e n t

p r o g r a m m e o f t h e c i t y c o n c e r n e d .

T h e p r o g r a m m e w i l l c o n t r i b u t e t o t h e

i m p l e m e n t a t i o n o f t h e c i t y ’ s

d e v e l o p m e n t

s t r a t e g y a n d i t s i n t e g r a t e d s p a t i a l

d e v e l o p m e n t p l a n .

T h e t r a n s p o r t c o m p o n e n t o f t h e p r o j e c t

i n c l u d e s a ) a t r a f f i c m a n a g e m e n t s y s t e m

( i n t e l l i g e n t t r a f f i c s y s t e m

) , b ) a p a s s e n g e r

t i c k e t i n g s y s t e m

, a n d c ) t h e m o d e r n i s a t i o n

o f t r a m w a y

l i n e s .

T h e c o m p o n e n t c ) c o m p r i s e s :

M o d e r n i s a t i o n o f t h e t r a m w a y t r a c k s a n d

p o w e r n e t w o r k s t o g e t h e r w i t h a u x i l i a r y

i n f r a s t r u c t u r e .

-

M o d e r n i s a t i o n o f t h e s i g n a l l i n g

s y s t e m

-

R e p l a c e m e n t o f p o w e r c a b l e s

-

M o d e r n i s a t i o n , r e f u r b i s h m e n t

a n d c o n s t r u c t i o n o f

t r a n s f o r m e r s , a n d

-

M o d e r n i s a t i o n a n d e x t e n s i o n o f

t h e t r a m

d e p o t

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2 9

S t a t e m e n t o f a c t i v i t y o r

a c t i v i t i e s c a p t u r e d

b y

M D B m e t h o

d o l o g i e s

C o n v e r s i o n o f p u m

p - b a s e d i r r i g a t i o n t o

g r a v i t y i r r i g a t i o n t o r e d u c e t h e a m o u n t

o f e n e r g y u s e d i n i r r i g a t i o n .

T h e p r o j e c t w i l l c o n t r i b u t e t o t h e

r e d u c t i o n o f g r e e n h o u s e g a s ( G H G

)

e m i s s i o n s t h r o u g h r e d u c e d

d e f o r e s t a t i o n

a n d f o r e s t d e g r a d a t i o n .

S u b - c o m p o n e n t I I ) i i ) w i l l f i n a n c e t h e

u p g r a d e o f t h e e l e c t r i c i t y g r i d t o p r o v i d e

h i g h - q u a l i t y s e r v i c e o n a 2 4 - h o u r

b a s i s t o 4 9 4

h o u s e h o l d s a n d o t h e r e n d - u s e r s i n t h e

p r o j e c t ’ s a r e a

b y a d d i n g

( t o t h e e x i s t i n g

d i e s e l g e n e r a t o r s ) c o m p l e m e n t a r y s o l a r P V

s y s t e m s t o

f e e d t h e

l o c a l d i s t r i b u t i o n

n e t w o r k . T h e u p g r a d e a l s o i n v o l v e s t h e s i t e

p r e p a r a t i o n f o r t h e i n s t a l l a t i o n o f

a p p r o x i m a t e l y 2 0 0 P V p a n e l s , a n d a

b a t t e r y

b a n k t o g u a r a n t e e r e l i a b i l i t y a n d a 2 4 - h o u r

s u p p l y .

M o d e r n i s a t i o n o f t r a m

l i n e s a n d t h e t r a m

d e p o t w i l l s u p p o r t s u s t a i n a b l e u r b a n m a s s

t r a n s p o r t i n t h e c i t y c e n t r e . T h e o v e r a l l

i m p a c t o f t h e i n v e s t m e n t w i l l b e t o s u p p o r t

s u s t a i n a b l e u r b a n m a s s t r a n s p o r t a n d

r e d u c e G H G e m i s s i o n s w

h i l s t i m p r o v i n g

s a f e t y a n d a i r p o l l u t i o n .

C a l c u l a t i o n o

f m i t i g a t i o n

f i n a n c e

T h e f i r s t s u b - c o m p o n e n t o f C o m p o n e n t

1 ( i . e . 1 . A

) F i n a n c i n g t h e c o n v e r s i o n o f

p u m p - b a s e d i r r i g a t i o n t o g r a v i t y

i r r i g a t i o n w a s c o u n t e d a s 1 0 0 %

m i t i g a t i o n . T h e p r o j e c t m a n a g e m e n t

s u b - c o m p o n e n t ( i

. e . 3 . A

) w a s p r o r a t e d

t o c o m p o n e n t 1 . A

( i . e . 1 7 % o f p r o j e c t

m a n a g e m e n t ) a n d

i n c l u d e d i n t h e

m i t i g a t i o n

f i n a n c e . T o t a l m

i t i g a t i o n

f i n a n c e ( 1 . A + 1 7 % o f 3 . A

) w a s t h u s

e s t i m a t e d a t 4 8 % o f t h e t o t a l f i n a n c e

( U S D 1 4 . 2 8 m i l l i o n o f U S D 3 0 m i l l i o n ) .

T h e p r o j e c t i s c o u n t e d a s 1 0 0 %

m i t i g a t i o n

O n l y s u b - c o m p o n e n t I I ) i i ) :

“ P r o v i s i o n o f

q u a l i t y s e r v i c e i n c i v i c c e n t r e ” i n t h e a m o u n t

o f U S D 2 . 5 m i l l i o n

( 8 % o f t o t a l l o a n v o l u m e )

q u a l i f i e s a s c l i m a t e m i t i g a t i o n

f i n a n c e .

T h e p r o j e c t w a s

f i n a n c e d u n d e r a

f r a m e w o r k

l o a n f r o m d i f f e r e n t r e s o u r c e s

i n c l u d i n g g r a n t . T h e c o n t r i b u t i o n t o

c l i m a t e c h a n g e m i t i g a t i o n w a s s e t a t 4 5 %

( o f t h e l o a n ) a l l o c a t e d t o c o m p o n e n t C ) ,

w h i c h r e s u l t s i n t h e a m o u n t o f U S D 3 4 . 9

m i l l i o n a s c l i m a t e c h a n g e m i t i g a t i o n . T h i s

r e p r e s e n t s 1 4 . 6 % o f t h e t o t a l i n v e s t m e n t

c o s t o f t h e p r o j e c t .

T y p e o

f m i t i g a t i o n

f i n a n c e

I n v e s t m e n t l o a n

E x t e r n a l r e s o u r c e s : g r a n t

M D B r e s o u r c e s - I n v e s t m e n t n o n -

c o n c e s s i o n a l l o a n

F r a m e w o r k

l o a n ( c o n c e s s i o n a l l o a n )

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30

4) Mapping mitigation sectors (shown in table 8) against the Mitigation Typology

Table 13: Mitigation Sector Definition

Sector Label Mapped Sections of the TypologyEnergy efficiency Sections 1-3 of the typologyRenewable energy Section 4 of the typologyTransport Section 5 of the typologyAgriculture, forestry and land use Section 6 of the typologyWaste and wastewater Section 7 of the typologyCross-sector activities and others Sections 8 -9 of the typology (except 9.4.2) EE and RE financing through financial intermediaries Section 9.4.2

This report was prepared by professional staff at the Multilateral Development Banks. The opinions expressed in thispublication are those of the authors and do not necessarily reflect the views of the MDBs, their governing bodies or theirmembers.

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0 9 / 2 0 1 4