2017 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE 2017 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE JUNE 2018 This report was written by a group of multilateral development banks (MDBs), composed of the African Development 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 Group (IDBG), the Islamic Development Bank (IsDB) and the World Bank Group (WBG). The findings, interpretations and conclusions expressed in this work do not necessarily reflect the official views of the MDBs’ Boards of Executive Directors, or the governments they represent. TABLE OF CONTENTS 2 Abbreviations and acronyms 3 Preface 4 Executive summary 7 1. Overview of MDB methodologies for tracking climate finance 7 1.1. Finance for adaptation to climate change 7 1.2. Finance for the mitigation of climate change 9 2. MDB climate finance, 2017 9 2.1. Total MDB climate finance 10 2.2. MDB climate finance by type of recipient or borrower 11 2.3. MDB climate finance by type of instrument 12 2.4. MDB climate finance by region 13 3. MDB adaptation finance, 2017 16 4. MDB mitigation finance, 2017 18 5. Climate co-finance, 2017 0 2 ANNEX A: Definitions and clarifications 22 ANNEX B: Joint methodology for tracking climate change adaptation finance 27 ANNEX C: Joint methodology for tracking climate change mitigation finance 34 ANNEX D: Finance that benefits both adaptation and mitigation 35 ANNEX E: Types of instrument 36 ANNEX F: Climate co-finance 37 ANNEX G: Geographical coverage of the report ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank IsDB Islamic Development Bank AfDB African Development Bank IDFC International Development Finance Club CCF climate co-finance IFC International Finance Corporation CIF Climate Investment Funds IDB Invest private sector operational arm of the IDBG CO2 carbon dioxide MDBs multilateral development banks EBRD European Bank for Reconstruction and Development MIGA Multilateral Investment Guarantee Agency EIB European Investment Bank NAMAs Nationally Appropriate Mitigation Actions EU European Union NDCs Nationally Determined Contributions € euro UNFCCC  United Nations Framework Convention on FY fiscal year Climate Change GEF Global Environment Facility US$ United States dollar GHG greenhouse gas WB  World Bank, composed of the International Bank IDB Inter-American Development Bank for Reconstruction and Development, and the IDBG Inter-American Development Bank Group, International Development Association composed of the IDB and IDB Invest WBG World Bank Group, composed of the WB, IFC and MIGA 2 2017 Joint Report on Multilateral Development Banks’ Climate Finance PREFACE The Joint Report on Multilateral Development Banks’ Climate Finance is an annual collaborative effort to make public MDB climate finance figures for developing and emerging economies, together with a clear explanation of the methodologies for tracking this finance. This 2017 edition was prepared by the European Bank for Reconstruction and Development, together with partners the African Development Bank, the Asian Development Bank, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank and the World Bank Group. The Islamic Development Bank joined the MDBs’ climate finance tracking groups in October 2017. Since the first Joint Report, which covered 2011, In order to address challenges and to further figures reported for climate finance have been based enhance their tracking methodologies, the joint on a jointly developed MDB tracking methodology, MDB climate finance tracking group has formalised which has been gradually updated and detailed. the coordination of two existing work streams. The From the 2014 report onwards, the methodology has first stream covers climate change mitigation and is included reporting on climate co-finance alongside coordinated by the European Investment Bank, while MDB climate finance. the second addresses climate change adaptation and is coordinated by the Inter-American Development In 2015, the MDBs and the International Development Bank. The methodologies presented in Annexes B Finance Club (IDFC) agreed on a set of Common and C of this Report contain a number of incremental Principles for finance to mitigate climate change and improvements and clarifications compared with the an initial set of Common Principles for finance to 2016 edition. support adaptation to climate change. Their intention was to take a common approach to tracking and, in future, to reporting climate finance. These institutions are expected to promote the Common Principles as their starting point and to discuss all differences transparently. The Paris Agreement's vision of making financial flows consistent with low greenhouse gas emissions and climate-resilient development – Article 2.1(c) of the Agreement – will be important in this ongoing work to improve tracking and reporting. Download this report at: www.ebrd.com/2017-joint-report-on-mdbs-climate-finance Download the infographic summary at: www.ebrd.com/2017-joint-report-on-mdbs-climate-finance-infographic 2017 Joint Report on Multilateral Development Banks’ Climate Finance 3 EXECUTIVE SUMMARY This seventh edition of the Joint Report on Multilateral Development Banks’ Climate Finance is an overview of financing committed by the African Development 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 Group (IDBG) and the World Bank Group (WBG), to projects and activities in 2017 that mitigate climate change and support adaptation to climate change. In addition, this year’s report summarises information on climate finance tracking from the Islamic Development Bank (IsDB).1 The AfDB, ADB, EBRD, EIB, IDBG and WBG have US$ 194 billion in climate finance during the past reported jointly on climate finance since the first seven years in developing and emerging economies. edition, published in 2012, which reported figures Figure 1 shows the reported commitments to climate for 2011. Collectively, they have committed almost finance from 2011 to 2017. 1. Total reported MDB climate finance Figure 1: finance commitments, 2011-17 (in US$ million) 35,219 35,000 WBG IDBG 30,000 28,345 EIB 27,014 26,846 27,441 13,213 25,096 EBRD 25,000 23,803 AfDB 11,787 ADB 10,662 11,494 US$ million 20,000 12,678 9,426 10,722 4,348 15,000 2,170 2,461 2,689 5,477 1,870 1,220 1,744 5,637 5,214 4,266 10,000 3,663 5,224 5,137 4,601 3,729 3,131 4,111 3,495 2,347 3,460 3,217 5,000 2,220 1,061 1,639 1,205 1,916 1,359 4,437 5,234 3,177 3,284 3,268 2,856 2,917 0 2011 2012 2013 2014 2015 2016 2017 Notes: In the years 2011-14 the numbers for WBG included only IFC and WB, and IFC included short-term finance (such as trade finance). 1.  Since 2015 IFC has not included short-term finance when reporting its climate finance figures. MIGA finance has been included since 2015. EIB climate finance figures (in this and in all previous editions of the Joint Report on MDBs’ Climate Finance) are restricted to developing and 2.  emerging economies in transition, and do not include other economies where the EIB actively supports climate action. The 2017 data include the “EU-12” (see Annex G), thereby excluding a number of EU Member States (including the Czech Republic and Malta), where the EIB is also active. IDBG numbers in the joint MDB reports include activities with public and private sector clients in all 26 borrowing member countries, based on 3.  the year of approval of sovereign- and non-sovereign-guaranteed operations by the corresponding Board of Executive Directors. Activities of the Inter-American Investment Corporation (IIC) prior to 2015 are not reported. EBRD and EIB climate finance figures in this chart are based on the annual average European Central Bank rate. For 2017 the exchange rate 4.  used is €1 = US$ 1.1297. 5. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding. 1 sDB climate finance commitments are not included in the total reported MDB climate finance for 2017. IsDB climate finance commitments for 2017 are I summarised on page 6. 4 2017 Joint Report on Multilateral Development Banks’ Climate Finance The data and statistics presented in this year’s report Collectively, the MDBs committed US$ 35,219 million result from uniform application of the methodologies in climate finance in developing and emerging developed jointly by the MDBs for their portfolios. economies in 2017 – US$ 27,868 million or In this report, the term “MDB climate finance” refers 79 per cent of this total for climate change mitigation to the financial resources (own-account and MDB- finance and US$ 7,352 million or 21 per cent of this managed external resources) committed by MDBs total for climate change adaptation finance. The net to development operations and components thereof total climate co-finance committed during 2017 which enable activities that mitigate climate change alongside MDB resources was US$ 51,718 million. and adaptation to climate change in developing and When combined with the MDB climate finance, emerging economies. See Annex G for further details it brings the year’s total climate finance to of the report’s geographic coverage. US$ 86,937 million. This is the third edition of the Joint Report on MDBs’ Climate Finance to include climate co-finance. Figure 2. Total MDB climate finance and net climate co-finance, 2017 (in US$ million) Figure 2: Total MDB climate finance and net climate co-finance, 2017 (in US$ million) 35,219 51,718 100% Private 10,355 Public 80% 21,804 Mitigation 60% 27,868 42,157 Adaptation 40% 24,864 29,914 20% 7,352 9,561 0% MDB climate finance Climate co-finance Note: See Annex A for definition of private and public. MDBs apply two distinct methodologies – with directly linked to vulnerability to climate change. fundamentally different approaches – to tracking MDBs make the best possible efforts to differentiate climate change adaptation finance (or “adaptation between their usual development finance and finance finance”) and to tracking climate change mitigation provided with an explicit intent to reduce vulnerability finance (or “mitigation finance”). Both methodologies, to climate change. Thus, the methodology for however, track and report climate finance in a tracking adaptation finance attempts to capture the granular manner. In other words, the climate incremental cost of adaptation activities. In contrast, finance reported covers only those components mitigation finance is estimated in accordance with the and/or subcomponents or elements or proportions joint MDB methodology for tracking climate mitigation of projects that directly contribute to or promote finance, which is based on a list of activities in adaptation and/or mitigation. sectors and sub-sectors – according to each MDB’s operational practice – that reduce greenhouse gas The MDBs estimate adaptation finance using the emissions and are compatible with low-emission joint MDB methodology for tracking climate change development. These fundamental differences adaptation finance. This methodology is based between the two methodologies result in figures for on a context- and location-specific approach and mitigation finance and adaptation finance that are not captures the amounts associated with activities directly comparable. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 5 The MDBs’ methodologies for tracking climate finance as well as the operations of IsDB Group members align with the Common Principles for Climate Change the Islamic Corporation for the Development of Mitigation Finance Tracking2 that have been jointly the Private Sector (ICD), the International Islamic agreed by the MDBs and by the IDFC and were first Trade Finance Corporation (ITFC) and the Islamic published in March 2015. In July 2015 the MDBs Corporation for Insurance of Investment and Export and the IDFC agreed an initial set of the Common Credit (ICIEC). In 2017, IsDB climate finance was Principles for Climate Adaptation Finance Tracking.3 estimated to be US$ 644 million (approximately The organisations continue to harmonise their 22 per cent of approvals in the reported sectors), of approaches to tracking adaptation finance. which US$ 339 million (53 per cent) was for climate mitigation and US$ 305 million (47 per cent) was The IsDB started applying the MDB methodologies dedicated to climate adaptation. The IsDB group for tracking climate finance (mitigation and will report fully on the details of its climate financing adaptation) to its 2017 projects in key sectors (modes, regions, sectors, and so on) in future reports (energy, transport, agriculture, and water and as it starts to apply the joint MDB methodology sanitation). In the years ahead, the IsDB will start consistently in all departments and entities. to apply the Common Principles in all of its projects 2 T  he Common Principles for Climate Mitigation Finance Tracking are set out in Annex C : http://www.eib.org/attachments/documents/mdb_idfc_ mitigation_common_principles_en.pdf 3 The Common Principles for Climate Change Adaptation Finance Tracking are set out in Annex B: https://www.afdb.org/fileadmin/uploads/afdb/  Documents/Generic-Documents/Common_Principles_for_Climate_Change_Adaptation_Finance_Tracking_-_Version_1__02_July__2015.pdf 6 2017 Joint Report on Multilateral Development Banks’ Climate Finance 1 OVERVIEW OF MDB METHODOLOGIES FOR TRACKING CLIMATE FINANCE The tracking of MDB climate finance is based Climate adaptation finance, as defined by the b.  on the harmonised principles and jointly agreed methodology, is not intended to capture the value methodologies detailed in Annexes B and C of this of an entire project or investment that may increase report. In this publication, the term “MDB climate resilience as a result of specific adaptation finance” refers to the amounts committed by MDBs activities taking place as part of the project. to finance climate change mitigation and adaptation activities in the development projects they undertake in developing economies and emerging economies 1.2. FINANCE FOR THE MITIGATION in transition. See Annex G for details of the report’s OF CLIMATE CHANGE geographic coverage. Climate change mitigation reduces, limits, or MDB climate finance includes commitments from the sequesters greenhouse gas (GHG) emissions to MDBs’ own accounts, and from external resources mitigate climate change. However, not all activities that channelled through and managed by the banks. reduce GHGs are eligible to be counted towards MDB Climate co-finance includes the amount of financial mitigation finance, which is based on a list of activities resources contributed by external resources alongside that are compatible with low-emission pathways. MDB climate finance. These may include entities from both the private (commercial) and public The joint methodology for tracking climate change (non-commercial) sectors. mitigation finance recognises the importance of long- term structural changes, such as the shift in energy production to renewable energy technologies, and 1.1. FINANCE FOR ADAPTATION the modal shift to low-carbon modes of transport. TO CLIMATE CHANGE Consequently, the methodology includes both greenfield and brownfield renewable energy projects Climate change adaptation aims to reduce the risks as well as modal-shift projects in transport. For energy or vulnerabilities posed by climate change and to efficiency projects the methodology acknowledges increase resilience. Identification of climate change that drawing a boundary between increasing adaptation finance is a result of a three-step process production and reducing emissions per unit of and thus, for a project to be counted either fully or output is difficult. Consequently, greenfield energy partially towards MDB adaptation finance, it must: efficiency investments are included only in a few cases where they help to prevent a long-term lock- set out the project’s context of vulnerability to a.  in to high-carbon infrastructure. When considering climate change brownfield energy efficiency investments as climate finance, old technologies must be replaced well make an explicit statement of intent to address b.  before the end of their lifetimes with new technologies this vulnerability as part of the project, and that are substantially more efficient. Alternatively, new technologies or processes are required to be articulate a clear and direct link between the c.  substantially more efficient than those normally used vulnerability and the specific project activities. in greenfield projects. The MDB methodology for tracking climate change The methodology has some explicit exclusions adaptation finance follows a context- and location- in certain sectors. Examples include hydropower specific, conservative and granular approach. It plants with high methane emissions from reservoirs tracks MDB financing only for those components that exceed GHG reductions associated with the (and/or subcomponents) or elements or proportions plant’s use of renewable energy; geothermal power of projects that directly contribute to or promote plants with high carbon dioxide (CO2) content in adaptation. It is important to note the following: the geothermal fluid that cannot be reinjected; and biofuel projects that deplete carbon pools more than The adaptation finance reported might not capture a.  they reduce GHG emissions, due to high emissions certain activities that might contribute significantly during production, processing and transportation. to resilience, but cannot always be tracked in quantitative terms (for example, operational The joint methodology for tracking climate mitigation procedures that support adaptation to climate finance is contained in Annex C of this report. change) or might not be associated with costs (such as siting assets outside flood-prone areas). 2017 Joint Report on Multilateral Development Banks’ Climate Finance 7 There are fundamental differences between the location-specific, and they respond to specific climate tracking methodologies for climate change adaptation vulnerabilities. Unlike mitigation activities, it is activities and those for mitigation activities. For therefore not possible to produce a standalone “list mitigation activities, a one-tonne reduction of CO2 of adaptation activities” that can be used under all emissions has the same impact regardless of where circumstances. the activities are located. It is therefore possible to define lists of typical activities that are deemed When comparing climate finance data, it is important to support the path to low-carbon development. to understand the differences and similarities. Table 1 However, adaptation activities are project- and summarises the key points in this regard. Table 1. Comparison of methodologies for tracking adaptation and mitigation finance Climate change activity Item Adaptation Mitigation General scope of The activity is typically a component or element of a This is typically a project (or component thereof) that qualifying activity project, and in certain circumstances an entire project, avoids, reduces or sequesters GHG emissions, or contributing to resilience (including socio-economic promotes efforts to achieve these goals. resilience) or adaptation to climate change. Basis for tracking The basis for tracking is incremental or component The basis for tracking is project- or component-based. based; it only takes into account those activities that Project-based: The whole project is considered to be specifically address vulnerability to climate change. a mitigation activity, for example, a typical renewable Eligible components are usually parts of a larger project, energy project or a project dedicated to improving the for example, water-saving equipment that is part of a energy efficiency of an existing facility. larger capital expenditure (CAPEX) investment in an Component-based: Mitigation activity in a project, such area vulnerable to increased risk of drought. as energy efficiency equipment that is part of a larger CAPEX investment. Granular The adaptation finance methodology is intended to A granular approach is used. Climate finance is approach to capture only the value of those activities within the intended to capture only the value of the project or finance tracking project that are aimed at addressing specific climate its components that avoid, reduce, limit, sequester vulnerabilities. It is not intended to capture the value or promote the avoidance, reduction, limitation or of the entire project that is made more climate resilient sequestration of GHG emissions. as a consequence of specific adaptation activities within the project. Scale of impact Project or climate risk specific to local, regional, Global national or global levels Single indicator Single indicators are not used for tracking adaptation Single indicators are used for tracking mitigation to quantify finance. Different indicators are needed; the intended finance. Ultimately, all mitigation projects can be and compare physical outcomes depend on the nature of the project. compared on the basis of their GHG impact, either the physical direct or indirect (for example, systems for monitoring outcomes of GHG that lead to better usage of energy systems). projects Qualification for Qualification is based on a three-step assessment Based on a “positive list” of activities that qualify for climate finance process, taking into account the climate change mitigation finance and a set of specific qualification vulnerability context and the specific project intent and exclusion criteria. to reduce climate vulnerabilities. Climate finance Following the three-step assessment process, finance Following the positive-list approach, finance for tracking for those project components that are clearly linked qualifying projects or project components is tracked. to the climate vulnerability context and contribute to climate change resilience. See Annexes B and C for a full description of the methodologies and examples of their application to MDB projects in an array of sectors. 8 2017 Joint Report on Multilateral Development Banks’ Climate Finance 2 MDB CLIMATE FINANCE, 2017 2.1. TOTAL MDB CLIMATE FINANCE Mitigation finance totalled US$ 27,868 million, or 79 per cent, of the total commitments, while In 2017, MDBs committed a total of US$ 35,219 million adaptation finance represented 21 per cent of total from their own account and funding from external commitments, or US$ 7,352 million. Table 2 shows resources that was channelled through the MDBs to the adaptation and mitigation finance commitments climate finance in developing and emerging economies. of each MDB in the economies listed in Annex G. Table 2. Total MDB climate finance, 2017 (in US$ million) MDB Adaptation finance Mitigation finance MDB climate finance ADB 998 4,236 5,234 AfDB 783 1,564 2,347 EBRD 497 4,105 4,601 EIB 150 5,327 5,477 IDBG 840 3,508 4,348 WBG 4,084 9,129 13,213 Total 7,352 27,868 35,219 Note: In certain cases, MDBs finance activities with simultaneous benefits for mitigation and adaptation. The 2017 figure of US$ 231 million of climate finance with dual benefits is best presented under the subheading of mitigation or adaptation finance (based on the most relevant elements of the project) to simplify reporting. See Annex D for more details on dual-benefit finance by MDBs. Table 3. Total MDB climate finance, climate co-finance and MDB finance, 2017 ADB AfDB EBRD EIB IDBG WBG Total Climate change finance commitment (US$ million) Own account 4,538 1,943 4,338 5,332 4,070 12,773 32,994 MDB-managed external resources 695 404 263 145 278 440 2,225 MDB climate finance 5,234 2,347 4,601 5,477 4,348 13,213 35,219 Climate co-finance 7,159 7,976 8,325 14,680 871 16,225 55,236 Correction for multiple-MDB financing (227) (1,514) (543) (653) – (581) (3,518) Total MDB climate activity finance 12,166 8,809 12,383 19,504 5,219 28,857 86,937 MDB finance (US$ million) MDB operations from MDB own account 19,295 7,423 10,924 19,276 14,616 58,820 130,354 Total MDB operations 22,710 8,404 12,115 20,164 15,254 61,783 140,430 Climate finance ratios Climate finance from MDB own account, 24% 26% 40% 28% 28% 22% 25% as a percentage of MDB operations from MDB own account MDB climate finance as a percentage of 23% 28% 38% 27% 29% 21% 25% total MDB operations Notes: 1. MDB climate finance refers to the sum of the climate finance from the MDBs’ own accounts and the MDB-managed external resources. 2. Total MDB operations refer to the sum of the MDBs’ own accounts and MDB-managed external resources. IFC numbers capture long-term finance own-account commitments only. Total own-account long-term finance commitments in the financial year 3.  2017 (FY17) were US$ 11,854 million. As such, in FY17, IFC reached a 25 per cent commitment level on long-term finance. The World Bank uses the term “climate co-benefits” for development finance that promotes climate mitigation and/or adaptation according to the 4.  MDB climate finance methodology. WBG climate finance resources (including own-account and managed external resources) for IFC, MIGA and the World Bank were US$ 3,072 million, 5.  US$ 622 million, and US$ 9,519 million, respectively. EIB figures cover developing economies and economies in transition, including the EU-12 (see Annex G), and do not include other EU countries 6.  where the EIB actively supports climate action. In 2017, EIB global climate-action own-resource financing was US$ 22 billion, representing 28 per cent of total EIB own-resource lending. IDBG climate finance (including own-account and managed external resources) for IDB, IDB Invest and the Multilateral Investment Fund (MIF) were 7.  US$ 3,050 million, US$ 1,260 million and US$ 38 million, respectively. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 9 Sources of MDB climate finance are split between 2.2. MDB CLIMATE FINANCE BY the MDBs’ own accounts and external resources TYPE OF RECIPIENT OR BORROWER channelled through and managed by the MDBs. External resources include trust-funded operations, MDBs report on the nature of first recipients or such as those funded by bilateral agencies and borrowers4 of MDB climate finance (those to whom dedicated climate finance funds such as the Climate finance will flow directly from the MDBs), differentiating Investment Funds (CIF), and climate-related funds between public and private recipients or borrowers. under the Global Environment Facility (GEF), EU Total commitment varies significantly between MDBs’ blending facilities and others. As some external own accounts and MDB-managed external resources, resources may already be covered in bilateral reporting, as illustrated in Table 4. Table 5 shows the split by type external resources managed by the MDBs are of recipient or borrower for the MDBs’ own accounts presented separately from the MDBs’ own accounts. and for MDB-managed external resources. Total 2017 MDB climate finance from MDBs’ own accounts was US$ 32,994 million and US$ 2,225 million from external resources channelled through the MDBs. Table 4. MDB climate finance by source of funds and by type of recipient or borrower, 2017 (in US$ million) Mitigation finance Adaptation finance MDB- MDB- managed managed MDB own external MDB own external Type of recipient or borrower account resources Subtotal account resources Subtotal Public recipient or borrower 16,906 851 17,757 6,618 490 7,107 Private recipient or borrower 9,242 868 10,111 228 16 245 Total 26,148 1,720 27,868 6,846 506 7,352 Table 5. MDB climate finance from MDB own account and MDB-managed external resources, split by type of recipient or borrower, 2017 (in US$ million) Private Public MDB-managed MDB-managed MDB MDB own account external resources MDB own account external resources ADB 1,140 370 3,398 325 AfDB 668 57 1,274 347 EBRD 2,312 170 2,026 94 EIB 624 77 4,707 68 IDBG 1,102 196 2,967 83 WBG 3,623 15 9,150 424 Total 9,471 885 23,524 1,340 4 See Annex A for the definitions of public and private recipients or borrowers. 10 2017 Joint Report on Multilateral Development Banks’ Climate Finance 2.3. MDB CLIMATE FINANCE instruments such as purchase agreements for carbon BY TYPE OF INSTRUMENT finance projects. MDBs reported that 81 per cent of total climate finance was committed through For the fourth consecutive year, MDBs reported investment loans. Figure 3 shows the breakdown of climate finance by the type of financial instrument, total MDB climate finance by instrument type. including equity, grants, loans, guarantees and other finance split by type of instrument, 2017 (in US$ million) 3. Total MDB climate finance Figure 3: 81% Investment loan US$ 28,433 million 6% Policy-based lending US$ 2,014 million 4% Guarantee US$ 1,506 million Total 4% Grant US$ 1,425 million US$ 35,219 million 3% Line of credit US$ 960 million 2% Equity US$ 590 million 1% Other instruments US$ 291 million Notes: Investment loans: loans are transfers for which repayment with interest is required. Investment loans can be used for any development activity 1.  that has the overall objective of promoting sustainable social and/or economic development, in line with the MDBs’ mandates. Policy-based lending (PBL) provides rapidly disbursing financing to help a borrower address actual or anticipated requirements for development 2.  financing of domestic or external origins. This financing supports a programme of policy and institutional actions for a particular theme or sector of national policy, such as actions to improve the investment climate for renewable energy. While there is no direct link between lending resources and the cost of policy actions undertaken, disbursements of PBL are conditional on the borrower´s fulfilment of its policy commitments in the lending agreement. Grants: transfers made in cash, goods or services for which no repayment is required. Grants are provided for investment support and/or policy- 3.  based support. 4. Guarantees: finance provided by an MDB to cover commercial and non-commercial risk. Equity: ownership interest in an enterprise that represents a claim on the assets of the entity in proportion to the number and class of shares owned. 5.  Lines of credit: lines of credit provide a guarantee that funds will be made available but no financial asset exists until funds have been advanced. 6.  Other instruments: other, unspecified types of financial instrument including MDB advisory services that are not covered by one of the other 7.  categories, for example if these are not part of an investment loan or financed by external resources. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 11 2.4. MDB CLIMATE FINANCE BY REGION distribution to small island states and to the least- developed economies is presented in Table 6. This report covers climate finance committed by Table 7 shows the distribution of climate commitments the MDBs in developing and emerging economies by income classification, in line with the World Bank only.5 In addition to the geographical distribution of definition dated June 2017. climate commitments by region as shown in Figure 4, 4. MDB climate finance Figure 4: finance by region, 2017 (in US$ million) 20% Latin America and the Caribbean US$ 7,174 million 16% Sub-Saharan Africa US$ 5,712 million 14% East Asia and the Pacific US$ 5,101 million Total 14% South Asia US$ 4,848 million US$ 35,219 million 13% Non-EU Europe and Central Asia US$ 4,748 million 10% EU-12 US$ 3,615 million 10% Middle East and North Africa US$ 3,521 million 1.4% Multi-regional US$ 500 million Note: EIB climate finance figures (in this and in all previous editions of the Joint Report on MDBs’ Climate Finance) are restricted to developing economies and emerging economies in transition, including the EU-12 (EU-13 excluding the Czech Republic and Malta, and including Greece), and hence exclude a number of EU Member States where the EIB is also active. Table 6. MDB climate finance to least-developed economies and small island states, 2017 (in US$ million) Mitigation finance Adaptation finance Total Least-developed economies 1,855 1,239 3,094 Small island states 156 217 374 Least-developed economy and small island state 85 139 224 Total 2,096 1,595 3,691 Table 7. MDB climate finance by income-classified economy groups, 2017 (in US$ million) Upper-middle Lower-middle Multi-regional Total MDB climate finance High income income income Low income or global Total Mitigation 2,889 10,809 10,585 2,246 1,339 27,868 Adaptation 76 2,275 3,612 1,099 290 7,352 Total climate finance 2,965 13,083 14,197 3,346 1,629 35,219 5  For the purposes of this report, a complete list of economies, together with the income groupings, are defined in Annex G. 12 2017 Joint Report on Multilateral Development Banks’ Climate Finance 3 MDB ADAPTATION FINANCE, 2017 In 2017, MDBs reported a total of US$ 7,352 million Figure 6 breaks down MDB adaptation finance by in commitments for climate change adaptation the type of instrument. MDBs reported that 82 per finance. Table 8 presents the 2017 adaptation cent of total adaptation finance was committed figures for each MDB. The data reported corresponds through investment loans. to the incremental costs of project components, subcomponents, or elements, or proportions of Figure 7 shows total adaptation finance by region, projects, which are considered to be input to an with the largest proportions of adaptation finance adaptation process and are intended to reduce seen in the following regions: Sub-Saharan Africa, vulnerability to climate change and build resilience Latin America and the Caribbean, and East Asia and to climate change. the Pacific. Total 2017 MDB adaptation finance was Figure 8 reports MDB adaptation finance by sector US$ 7,352 million, with US$ 6,846 million coming grouping – that is, sector groups for which some from MDBs’ own accounts and US$ 506 million from adaptation finance has been reported. MDB-managed external resources. The regional breakdowns of adaptation finance in Table 8 provides a breakdown of climate adaptation various sectors are presented in Figure 9. finance committed by the MDBs from their own accounts and from MDB-managed external resources. Figure 5 shows a breakdown by type of recipient or borrower. Table 8. MDB adaptation finance by MDB according to source of funds, 2017 (in US$ million) ADB AfDB EBRD EIB IDBG WBG Total MDB own account 930 607 444 133 787 3,945 6,846 MDB-managed external resources 69 176 52 17 53 139 506 Total 998 783 497 150 840 4,084 7,352 5: MDB adaptation finance Figure 5. finance by type of recipient or borrower and by MDB, 2017 (in US$ million) 100% Public Private 80% 60% 398 998 765 135 801 4,011 7,107 40% 20% 99 18 15 39 74 245 0% ADB AfDB EBRD EIB IDBG WBG Total MDB 2017 Joint Report on Multilateral Development Banks’ Climate Finance 13 6: MDB adaptation finance Figure 6. finance by type of instrument, 2017 (in US$ million) 82% Investment loan US$ 6,065 million 9% Grant US$ 674 million 6% Policy-based lending US$ 447 million Total 1% Other instruments US$ 93 million US$ 7,352 million 1% Line of credit US$ 46 million 0.2% Guarantee US$ 16 million 0.1% Equity US$ 11 million 7: MDB adaptation finance Figure 7. finance by region, 2017 (in US$ million) 28% Sub-Saharan Africa US$ 2,038 million 23% Latin America and the Caribbean US$ 1,724 million 19% East Asia and the Pacific US$ 1,370 million Total 15% South Asia US$ 1,070 million US$ 7,352 million 8% Non-EU Europe and Central Asia US$ 616 million 7% Middle East and North Africa US$ 507 million 0.2% EU-12 US$ 15 million 0.2% Multi-regional US$ 11 million 14 2017 Joint Report on Multilateral Development Banks’ Climate Finance 8: MDB adaptation finance Figure 8. finance by sector grouping, 2017 (in US$ million) 35% Water and wastewater systems US$ 2,600 million 26% Energy, transport and other built environment and infrastructure US$ 1,938 million Total 12% Other agricultural and ecological resources US$ 871 million US$ 7,352 million 11% Crop and food production US$ 798 million 8% Institutional capacity support or technical assistance US$ 598 million 5% Cross-cutting sectors US$ 357 million 1% Coastal and riverine infrastructure US$ 88 million 1% Information and communications technology US$ 53 million 1% Financial services US$ 43 million 0.1% Industry, manufacturing and trade US$ 6 million 9: MDB adaptation finance Figure 9. finance by sector grouping and by region, 2017 (in US$ million) 2,000 Crop and food production Water and wastewater systems Energy, transport and 1,500 other built environment and infrastructure US$ million Coastal and riverine infrastructure 1,000 Other agricultural and ecological resources Institutional capacity support or technical 500 assistance Cross-cutting sectors Financial services 0 Industry, extractive industries, manufacturing Latin America and East Asia and the Caribbean North Africa and Central Asia South Asia Africa the Pacific EU-12 Middle East and Non-EU Europe Sub-Saharan Multi-regional and trade Information and communications technology 2017 Joint Report on Multilateral Development Banks’ Climate Finance 15 4 MDB MITIGATION FINANCE, 2017 In 2017, MDBs reported a total of US$ 27,868 million MDBs reported that 80 per cent of total mitigation in financial commitments to the mitigation of climate finance was committed through investment loans. change mitigation. Data reported corresponds Figure 11 breaks down MDB mitigation finance by to the financing of mitigation projects or of those type of instrument. components, subcomponents, or elements, or proportions of projects that provide mitigation benefits Figure 12 shows total mitigation finance by region. (rather than reporting the entire project cost). Figure 10 The largest proportions of mitigation finance were in shows a breakdown by type of recipient or borrower. the following regions: Latin America and the Caribbean, Non-EU Europe and Central Asia, and South Asia. MDB mitigation finance was US$ 27,868 million in 2017, with US$ 26,148 million from the MDBs’ own Figure 13 reports MDBs’ mitigation finance by sector accounts and US$ 1,720 million from MDB-managed grouping, that is, sector groups for which some external resources. Table 9 provides a breakdown of mitigation finance has been reported. climate mitigation finance committed by the MDBs during 2017 from own-account and from MDB- The regional breakdowns of mitigation finance in managed external resources. various sectors are presented in Figure 14. Table 9. MDB mitigation finance by MDB according to source of funds, 2017 (in US$ million) ADB AfDB EBRD EIB IDBG WBG Total MDB own account 3,609 1,336 3,894 5,199 3,283 8,828 26,148 MDB-managed external resources 627 228 211 128 225 300 1,720 Total 4,236 1,564 4,105 5,327 3,508 9,129 27,868 10: MDB mitigation finance Figure 10. borrower and finance by type of recipient or borrower and typeby by MDB, 20172017 MDB, US$ million) (inmillion) (in US$ 100% Public Private 80% 1,722 856 5,564 17,757 2,725 2,249 60% 4,640 40% 2,383 708 3,565 20% 1,510 1,259 10,111 686 0% ADB AfDB EBRD EIB IDBG WBG Total MDB Figure 11: MDB mitigation finance by type of instrument, 2017 (in US$ million) Figure 11. MDB mitigation finance by type of instrument, 2017 (in US$ million) 80% Investment loan US$ 22,368 million 6% Policy-based lending US$ 1,568 million 5% Guarantee US$ 1,490 million Total 3% Line of credit US$ 914 million US$ 27,868 million 3% Grant US$ 751 million 2% Equity US$ 578 million 1% Other instruments US$ 198 million 16 2017 Joint Report on Multilateral Development Banks’ Climate Finance 12: MDB mitigation finance Figure 12. region, 2017 finance by region, (in US$ 2017 (in US$ million) million) 20% Latin America and the Caribbean US$ 5,451 million 15% Non-EU Europe and Central Asia US$ 4,132 million 14% South Asia US$ 3,777 million Total 13% East Asia and the Pacific US$ 3,731 million US$ 27,868 million 13% Sub-Saharan Africa US$ 3,674 million 13% EU-12 US$ 3,600 million 11% Middle East and North Africa US$ 3,014 million 2% Multi-regional US$ 489 million finance by sector grouping, 2017 (in US$ million) 13. MDB mitigation finance Figure 13: 33% Renewable energy US$ 9,213 million 29% Transport US$ 8,114 million 14% Energy efficiency US$ 3,943 million Total 9% Lower-carbon and efficient energy generation US$ 27,868 million US$ 2,644 million 6% Agriculture, forestry and land-use US$ 1,557 million 4% Waste and wastewater US$ 1,189 million 3% Cross-cutting issues US$ 893 million 1% Low-carbon technologies US$ 288 million 0.1% Non-energy GHG reductions US$ 15 million 0.04% Miscellaneous US$ 12 million finance by sector grouping and by region, 14. MDB mitigation finance Figure 14: 2017 (in region, 2017 US$ million) (in US$ million) 6,000 Renewable energy Transport 5,000 Energy efficiency Cross-cutting issues Lower-carbon and efficient 4,000 energy generation US$ million Agriculture, forestry 3,000 and land-use Waste and wastewater Low-carbon technologies 2,000 Non-energy GHG reductions Miscellaneous 1,000 0 Latin America and East Asia and the Caribbean North Africa and Central Asia South Asia Africa the Pacific EU-12 Middle East and Non-EU Europe Sub-Saharan Multi-regional 2017 Joint Report on Multilateral Development Banks’ Climate Finance 17 5 CLIMATE CO-FINANCE, 2017 From 2015 the MDBs began reporting on climate last column of Tables 10 and 11 nets out potentially co-financing (CCF) flows in line with the harmonised double-counted co-financing by considering only definitions and indicators that had been established the proportion of co-financing for every project that to estimate CCF. Tracking of climate co-finance aims features co-financing from another MDB. Such CCF to estimate the volume of financial resources invested figures are also listed in Table 3, alongside each by public and private external parties alongside MDBs MDB’s own climate finance flows. for climate mitigation and adaptation activities. In the reference guide, MDBs emphasise the The approach categorises CCF sources of funds differences in how various financial instruments, as: (i) other MDBs; (ii) IDFC member institutions, including guarantees, are tracked and reported. including bilateral and multilateral members; By mitigating the political and commercial risks of (iii) other international public entities such as donor private and publicly owned investments, guarantees governments; (iv) contributions from other domestic can facilitate access to capital for climate finance public entities such as recipient-country governments; activities. This can enhance the mobilisation of and (v) all private entities (defined as those with at resources for a specific project or in support of least 50 per cent of their shares held privately) split specific government policies. by private direct mobilisation and private indirect mobilisation. This level of granularity enables MDBs to For consistency with the agreed MDB methodology present an increasingly nuanced picture of co-finance on tracking and reporting mobilised private capital, flows used for climate change interventions. the tracking and reporting of guarantees as detailed in the 2017 Joint Report on MDBs’ Climate Finance In April 2017, MDBs published a reference guide assumes: (i) a distinction in tracking and reporting (From Billions to Trillions: Transforming Development between “commercial guarantees” and “non- Finance)6 to explain how they calculate and jointly commercial guarantees”;9 and (ii) causality between report private investment mobilisation beyond the guarantee and the underlying investment covered climate finance. The purpose of the methodology is to (in other words, in the absence of the guarantee, the recognise and measure the private capital mobilised underlying investment would be unlikely to occur). in MDB project activities. The guide outlines the MDBs’ joint commitment to mobilising increased Table 10 reflects the 2017 CCF flows, including investment from the private sector and institutional the direct and indirect mobilisation attributed to investors. The 2017 Joint Report on MDBs’ Climate guarantees. The guarantee exposure of each MDB Finance follows the agreed terminology7 and Table 10 has been shown as “own account” in Table 3. includes “private direct mobilisation” and “private indirect mobilisation”. Added together, these two forms of mobilisation represent the private share of climate co-finance.8 Table 10 shows 2017 CCF flows as reported by each institution, segmented by the source of co-financing. These CCF figures are the best estimate of resource flows based on information available at the time of board approval and/or commitment to each project. In some cases, two or more MDBs jointly finance a project, which results in some overlap between the gross co-finance figures reported by the different MDBs. Table 11 shows CCF flows by adaptation and mitigation. In order to avoid double-counting, the 6 h  ttp://documents.worldbank.org/curated/en/495061492543870701/pdf/ 114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPrivateInvestmentMobilizationMethodologyReferenceGuide.pdf 7 See Annex A for definitions of “private direct mobilisation”, “private indirect mobilisation” and “public direct mobilisation”. 8 See Annex F on additional information on co-finance. 9 In the context of this report, non-commercial risk guarantees are defined as insurance or guarantee instruments covering investors against perceived  political risks including, but not limited to, the risks of transfer restriction (including inconvertibility), expropriation, war and civil disturbance, breach of contract, and failure to honour financial obligations, and may provide credit enhancement and improve ratings for capital market transactions. Commercial or credit-risk guarantees refer to instruments covering all other risks not included above. 18 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table 10. Climate co-finance flows by MDB and by source, 2017 (in US$ million) Correction for Total multiple climate MDB ADB AfDB EBRD EIB IDBG WBG co-finance financing Public direct mobilisation – – 46 111 – 808 965 965 Public co-finance Other MDBs 875 2,371 1,279 1,102 139 1,182 6,948 6,948 IDFC members 301 1,262 109 678 166 697 3,214 2,086 Other international public 12 1,902 389 4,111 107 2,665 9,186 8,705 Other domestic public 2,313 1,680 472 5,215 25 2,226 11,931 11,210 Private mobilisation Private direct mobilisation 425 – 449 562 434 1,868 3,739 3,739 Private indirect mobilisation 3,232 762 5,580 2,902 – 6,779 19,254 18,066 Total 7,159 7,976 8,325 14,680 871 16,225 55,236 51,718 Note: Co-financing figures are current as of 1 April 2018. Fluctuations are expected due to changes in project financing between Board approvals, loan signatures and execution. Table 11. Climate co-finance flows by MDB and by thematic focus, 2017 (in US$ million) Correction for Total multiple climate MDB ADB AfDB EBRD EIB IDBG WBG co-finance financing Adaptation finance 1,924 2,546 1,644 117 25 4,227 10,484 9,561 Mitigation finance 5,235 5,430 6,680 14,563 846 11,998 44,752 42,157 Total 7,159 7,976 8,325 14,680 871 16,225 55,236 51,718 2017 Joint Report on Multilateral Development Banks’ Climate Finance 19 A ANNEX A: DEFINITIONS AND CLARIFICATIONS Avoiding double-counting: Where the same Point of reporting: Data reported in this publication project, sub-project or project element contributes reflects financial commitments at the time of Board to mitigation and adaptation, an MDB’s individual approval or financial agreement signature and is processes will determine which proportion is counted therefore based on ex-ante estimations. All efforts as mitigation or as adaptation, so that the actual have been made to prevent double-counting. No financing will not be recorded more than once. Some revisions will be issued in cases where a project’s MDBs are reporting as a separate category any scope changes later to either increase or decrease projects where the same components or elements climate financing. contribute to mitigation and adaptation alike. The MDBs are working on the best method for reporting Private direct mobilisation: Financing from a private projects where the same components or elements entity on commercial terms due to the active and contribute to both mitigation and adaptation. direct involvement of an MDB leading to commitment. Evidence of active and direct involvement includes Conservativeness: Where data is unavailable, mandate letters, fees linked to financial commitment any uncertainty must be overcome by taking a or other valid or auditable evidence of an MDB’s conservative approach, where under-reported rather active and direct role leading to commitments by than over-reported climate finance is preferable. private financiers. Private direct mobilisation does not include sponsor financing. Financing instruments: This report accounts for climate finance through the largest and most relevant Private indirect mobilisation: Financing from private development-finance instruments of MDBs, including entities supplied in connection with a specific activity grants, loans, guarantees, equity, and performance- for which an MDB is providing financing, where no based instruments. MDB is playing an active or direct role that leads to the commitment of the private entity’s finance. Private Granularity: MDBs report climate finance by taking indirect mobilisation includes sponsor financing, if the only those components and/or subcomponents or sponsor qualifies as a private entity. elements or proportions of projects with activities that contribute directly to or promote climate change Public and private sector operations: This adaptation and/or mitigation. determination is based on the status of the first recipient or borrower of MDB finance. The first Investments and technical assistance: Refers recipient or borrower is considered to be public when to vehicles that MDBs use to channel specific at least 50 per cent of the stakes or shares of the investments to finance capital and recurrent recipient or borrower are publicly owned. expenditures for goods and services, as well as to specialised advisory services and capacity-building Public direct mobilisation: Financing from a public initiatives. entity due to the active and direct involvement of an MDB leading to commitment. Evidence of active and MDB-managed external resources: Refers to direct involvement includes mandate letters or other the volume of operations supported by bilateral valid or auditable evidence of an MDB’s active and institutions through dedicated climate finance direct role. The main difference between an external entities such as the GEF and CIF, or other donor funds resource under MDB management (ERUM) and a such as EU blending facilities, which may also be public direct mobilisation is the disbursement which reported to the Development Assistance Committee under public direct mobilisation goes directly from a of the Organisation for Economic Co-operation and public entity to the beneficiary. Development by contributor countries. 20 2017 Joint Report on Multilateral Development Banks’ Climate Finance Recipient/borrower: Refers to the first borrower or beneficiary to whom finance will flow directly. The MDBs acknowledge that this classification is neither simple nor straightforward and that the characteristics of the first recipient or borrower may not be the same as those of the final beneficiary or borrower. An example would be a loan to a national development bank (the first recipient) for energy efficiency in small and medium-sized enterprises (the final beneficiaries). Operations through public- private partnerships (PPPs) add another layer of complexity to this classification. Reporting period: This report’s data covers the fiscal year 2017. Even though MDBs do not follow the same reporting cycle, data remains comparable across MDBs as all reporting cycles correspond to a 12-month period. Resources covered: MDBs’ own accounts as well as a range of external resources managed by the MDBs and various sources of co-financing. Values of zero and “—”: Reporting is complete for all fields and tables. A value of 0 in a table means the value is below US$ 0.5 million while a “—” means no amount was reported. As all financial figures are rounded to the nearest US$ million, calculations contained in a table may vary slightly and may not always add up to 100 per cent or to the total shown. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 21 B ANNEX B: JOINT METHODOLOGY FOR TRACKING CLIMATE CHANGE ADAPTATION FINANCE BACKGROUND AND GUIDING PRINCIPLES MDB METHODOLOGY AND MDB-IDFC COMMON PRINCIPLES Climate resilience and adaptation are intrinsically linked to development. This makes it challenging MDBs and the International Development Finance to identify clearly the adaptation finance elements Club are fully committed to promoting and supporting in development operations. In response to this climate-resilient development as an essential part challenge, the joint MDB Working Group on Climate of the sustainability of their investments. With this Finance Tracking applies a common methodology shared commitment, they work together to improve for tracking adaptation finance, identifying those definitions and understanding of the various specific adaptation activities within the development approaches to and principles for tracking climate operations of MDBs that are carried out in response change adaptation finance. to perceived or expected impacts of climate change. The methodology uses a context-specific, location- As a result, in July 2015 these institutions agreed specific and granular approach. Estimations are on a set of initial Common Principles for Climate conservative, in order to reduce the scope for over- Change Adaptation Finance Tracking and the next reporting adaptation finance. steps for their work. These Common Principles define the content of adaptation finance. They also lay the The MDB adaptation finance tracking methodology basis for further joint work that will include increasing considers the sub-project level or project-element the robustness and comparability of reported figures level to be appropriate. It also seeks to identify on climate change adaptation finance and of key the links between adaptation activities and a concepts used in reporting guidelines and processes. project’s explicit intent to reduce vulnerability to climate change. Thus, the volume of MDB-reported adaptation finance is an estimation of total project APPLICATION OF THE MDB METHODOLOGY finance for specific project activities which contribute FOR TRACKING ADAPTATION FINANCE to overall project outcomes in the process of adaptation to climate change. The MDB methodology for tracking adaptation finance consists of the following key steps: It is important to note that the MDB’s estimated climate finance may not express the full value setting out the climate-change vulnerability context • of project finance that contributes to climate of the project resilience. For instance, the granular approach would capture financing for improved drainage of a making an explicit statement of a project’s intent to • newly constructed road to withstand heavy rainfall reduce climate vulnerability or storm surges that in turn contributes to the overall resilience of the road and the investment. articulating a clear and direct link between specific • The granular approach does not capture the value project activities and the project’s objective of of the entire project or investment that may increase reducing vulnerability to climate change. resilience due to specific adaptation activities within the project. Other activities may not always be tracked The identification and estimation of adaptation in quantitative terms as they may not have associated finance is limited solely to those project activities incremental costs, such as operational procedures (that is, projects, project components, or elements or to ensure business continuity or the practice of siting proportions of projects) that are clearly linked to the assets outside the range of a storm surge. context of climate vulnerability. Step 1. Context of vulnerability to climate change For a project to be seen as contributing to adaptation, MDBs must first set out clearly the context of climate vulnerability, using a robust base of evidence. Project documents may refer to existing analysis and reports or to original, bespoke assessments of climate vulnerability such as those carried out as part of project preparation. 22 2017 Joint Report on Multilateral Development Banks’ Climate Finance Good practice in the use of existing analyses or Where climate change adaptation activities are reports includes citing authoritative, preferably planned in projects that also have other objectives, peer-reviewed sources, such as academic journals, adaptation finance tracking takes into account the national communications to the UNFCCC, Nationally estimated incremental cost or investment associated Determined Contributions (NDCs), reports of the with any discrete components of the project – or Intergovernmental Panel on Climate Change, or elements of the project design – that address risk and strategic programmes for climate resilience. vulnerabilities under current and future conditions of climate change. Good practice in conducting original, bespoke analysis entails the use of records from trusted sources which When it is not possible to estimate incremental document the vulnerability of communities, physical cost or investment directly from project budgets assets or ecosystems to climate change, as well – for example, when using policy instruments as the use of recent climate trends including any or balance-sheet lending, equity investments or departures from historic means. credit-line lending through financial intermediaries – a proportion of the project cost or investment These may be combined with climate change corresponding to adaptation activities may be used projections drawn from a range of climate change to represent the incremental amount. While the models, with high and low greenhouse gas emission Common Principles are applied by MDBs and IDFC scenarios, to explore the full array of projected institutions, MDBs further disaggregate in order outcomes and uncertainties. Climate projection to estimate the more granular incremental cost of uncertainties should be presented and interpreted an adaptation measure. IDFC institutions do not in a transparent way. The timescale of the projected necessarily apply the incremental cost approach climate change impacts should match the intended that the MDB group uses. lifespan of the assets, systems or institutions being financed through the project (for example, a time The 2016 Joint Report on Multilateral Development horizon of 2030, 2050, 2080, and so on). Bank’s Climate Finance10 provides a list of examples illustrating sector- and subsector-specific adaptation activities in which MDB adaptation finance may Step 2. Statement of purpose or intent be identified. The list is for illustrative purposes only; it is not exhaustive, nor is it intended for Once the context of vulnerability to climate change application as a “positive list” (see Annex Table 1 of has been established, the project should detail the the 2016 edition). Any adaptation finance identified explicit intention to address the context- and location- must be substantiated by applying the three-step specific vulnerabilities to climate change identified process described above. Table A.B.1 illustrates by the project’s climate vulnerability assessment. the application of the MDB adaptation finance This is an important step in distinguishing between a tracking methodology to development operations development project that contributes to climate change by presenting cases of projects in the agriculture, adaptation and a standard development project. road infrastructure, water, health, and disaster risk- management sectors. The methodology is flexible about the location and form of this statement of intent in the project document, as long as the MDB is able to record and ADAPTATION FINANCE TRACKING AMONG track the rationale for each adaptation element linked DEVELOPMENT FINANCE INSTITUTIONS to the climate-vulnerability context described. MDB projects with adaptation finance usually state – in A growing number of institutions and initiatives work final technical documents, documents for Board together on the methodologies for tracking climate approval, internal memos or other project documents adaptation finance and strive to harmonise these – the intention to reduce vulnerability. approaches. The MDB-IDFC Common Principles are the result of this work. These institutions continue their efforts for greater harmonisation, comparability Step 3. Clear and direct link between and transparency of their reported climate finance. climate vulnerability and project activities In addition, the OECD, which designed and applies the OECD-DAC Rio Markers, recommends the MDB In line with the principles of the overall MDB climate methodology’s three-step approach to climate finance tracking methodology, adaptation finance adaptation finance tracking as a “best practice”. estimations consider only the finance allocated to In April 2016 the OECD’s efforts yielded improved specific project activities that are clearly linked to the guidance for tracking bilateral official development project’s climate vulnerability context. assistance that targets climate change adaptation. 10  he 2017 Joint Report on Multilateral Development Banks' Climate Finance does not list these illustrative examples of adaptation activities, but you can T find them at: www.ebrd.com/2016-joint-report-on-mdbs-climate-finance.pdf 2017 Joint Report on Multilateral Development Banks’ Climate Finance 23 Table A.B.1. Case studies in tracking adaptation finance Energy, transport and other built environment Sector Agricultural and ecological resources and infrastructure Brief description The project seeks to improve rural farmland The project aims to rehabilitate three main sections of project infrastructure and demonstrate sustainable farming of the national road network that span a total distance practices. It aims to reduce degradation of land and of approximately 52 km, in order to improve climate the environment and to address serious current and resilience. The operation is part of an overall investment projected impacts from climate change. The project has programme to rehabilitate and upgrade approximately three goals: (1) the establishment of productive farmland, 216 km of the country’s main road network. The including around 4,200 hectares of rehabilitated operation will also support ongoing reforms aimed at valley-floor cropland and more than 13,000 hectares helping the road sector to improve service quality and of sloping land; (2) the adoption of sustainable farming cost recovery. technology and practices, including support for farmers and cooperatives to improve access to resources and technology through cooperation with state-owned enterprises and private enterprises, and to demonstrate improved and climate-resilient cropping practices; and (3) the strengthening of institutional, technical and management capacity, including training for farmers, farmers’ cooperatives and project implementation units, and the establishment and capacity-development of associations for the management and maintenance of farmland infrastructure. The project plans to demonstrate sustainable farming systems and practices that could be replicated throughout the country to combat land and soil degradation. Climate-resilient agriculture is one of the four sustainable features that the project aims to demonstrate. Specifically, the project supports: (1) water-management practices that capture and store water for irrigation, offer potential for savings in energy, water and money, and boost crop yields by reducing drought impacts, maintaining soil health, and reducing runoff in order to minimise soil erosion and the transfer of pollutants; (2) the selection of crops and varieties that are well adapted to a changing climate, high- yielding and resistant to biotic and abiotic stresses; and (3) the provision of good-quality seeds and seedlings to ensure the availability of high-quality varieties. Climate Climate risk and vulnerability assessments conducted The country is projected to experience temperature vulnerability for the project highlighted that climate change is a rises and greater variability in precipitation levels, context significant threat to the project viability. Irrigated crops, including an increased frequency of heavy precipitation which are the main focus of the project, were found events. More variable precipitation may alter river to be the component that is most vulnerable to higher hydrology and result in more frequent extreme weather temperatures and decreased rainfall. The assessment events such as flash floods, increasing the risk of identified key vulnerabilities including: (1) increasing erosion and landslides. water stress and higher demand for water to irrigate crops, due to higher temperatures; and (2) declining availability of water for rain-fed crops and irrigation from site catchments and local waterbodies, due to lower levels of rainfall. In addition, on average, warming conditions will increase the incidence of crop diseases and/or pests. Statement of Based on the climate risk and vulnerability assessment, The project aims to increase the climate resilience of the purpose or intent the project intends to address the identified road network by incorporating climate change adaptation to reduce climate vulnerabilities through a range of adaptation measures. measures into the road rehabilitation and upgrade. vulnerability (Continued overleaf) 24 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.B.1. Case studies in tracking adaptation finance (continued) Energy, transport and other built environment Sector Agricultural and ecological resources and Infrastructure Project activities The project design includes the following adaptation The activities include structural measures – such linked to measures: (1) the use of improved strains and varieties as increased drainage capacities, reinforced road reducing climate of crops, which are adapted to the local soil and climate embankments and altered bridge designs – to avoid vulnerability conditions; (2) significant on-farm water-storage worsening erosion and increased frequency and capacity as a buffer against the effects of seasonal severity of landslides. Non-structural measures such drought for all sub-projects, including covered water as the adoption of a climate-change adaptation strategy storage to minimise evaporation; (3) the use of water- will underpin ongoing maintenance activities and efficient irrigation technologies, including sprinkle and systematic integration of climate resilience measures drip irrigation, which allow real-time control of irrigation; across the road network. (4) mulching with cover crops (green manure), such as forage grass and leguminous forage, in tea and tea-oil plantations to conserve soil moisture, control soil erosion, and increase carbon sequestration on farms; and (5) the establishment of “shelterbelts” of trees around tea and tea-oil plantations that will protect crops from drying out and save water. Type of financial Loan Non-concessional loan plus technical cooperation grant instrument Estimation of The total project cost is US$ 191.42 million. The MDB The total MDB finance for this project is €40 million, adaptation provided a loan of US$ 100 million. Adaptation measures split into three investment tranches over the period finance are estimated to cost US$ 31 million. A proportional 2017-19. Of the first €10 million tranche, 66 per cent approach was used to estimate the incremental finance qualifies as adaptation finance, because these related to climate change adaptation. measures include the rehabilitation and strengthening of highly climate-vulnerable road sections (including upward and downward slopes and drainage) and supporting walls, as well as the rehabilitation and strengthening of vulnerable bridges by improving protection against scouring, for example. The second and third investment tranches will be provided in 2018 and 2019, respectively. Adaptation finance will be assessed and attributed as each tranche is provided. Cross-cutting sector: Cross-cutting sector: Sector disaster risk management health, nutrition and population Brief description This particular project supports improved disaster The development objectives of the project are to: of project response capacity and enhanced resilience of critical (1) strengthen national and regional cross‐sectoral transport infrastructure. Such additional finance is capacity in the region for collaborative disease provided to scale up activities under all components surveillance and epidemic preparedness, to take account of a larger programme, which supports post-hurricane of changing disease vectors due to climate change; recovery and reconstruction. and (2) in the event of an “eligible emergency”, provide immediate and effective response to the emergency. Climate The project identifies the risk to this island country from The project documentation recognises changes in vulnerability hydrometeorological hazards (hurricanes, high winds, the epidemiology of infectious diseases associated context excess rainfall, landslides and flooding). Climate change with climate variability and change in the region over is likely to increase the frequency and severity of these the past 40 years. It mentions growing evidence of hazards, reinforcing the need for stronger policies to the impact of climate change on the transmission reduce the risks of climate change and disasters, in patterns of infectious disease, and on nutritional order to ensure sustainable development. The project status, reproduction and geographic range. The project notes that in recent years an increase in maximum notes that the risk of malaria and other mosquito- temperatures has prompted extreme rainfall events borne disease outbreaks increases approximately and increased the risk of flash floods. It also notes that fivefold in the year following an El Niño event. It also this pattern is expected to worsen under the effects of notes that in some regions climate impacts could climate change. In addition to claiming lives, climate- increase the burden of diarrhoea by up to 10 percent related hazards are likely to take an increasing toll on by 2030. Furthermore, three countries in the region all sectors of the economy and could reverse hard-won have explicitly included health considerations in their development gains. Roads remain the primary mode Nationally Determined Contributions. of transport for people and goods alike, with about 80 per cent of traffic on land. The country has a limited road network that suffers from a lack of maintenance, and from the impacts of climate change and variability. Entire regions remain isolated during the rainy season, and this isolation becomes worse in the wake of extreme weather events such as hurricanes. (Continued overleaf) 2017 Joint Report on Multilateral Development Banks’ Climate Finance 25 Table A.B.1. Case studies in tracking adaptation finance (continued) Cross-cutting sector: Cross-cutting sector: Sector disaster risk management health, nutrition and population Statement of The project contributes to strategic objectives of The project explicitly aims to contribute to climate purpose or intent promoting resilience by strengthening preparedness change adaptation by improving disaster education, to reduce climate for natural disasters and by improving disaster deploying early-warning systems that include vulnerability prevention. The project document notes that all community mobilisation, planning for relocation efforts activities are designed to contribute directly to building should the need arise, and increasing the connectivity resilience to the risks of climate change and disasters. of health facilities in high-risk areas. It mentions that All project activities are geared directly towards adaptation considerations are present throughout the responding to a disaster triggered by a climate- project and are not limited to early-warning systems. related event. They aim to build resilience to climate The project documentation notes that the countries and disaster risks, and this will directly enhance the covered are actively encouraged to enhance their country’s capacity to adapt to climate change. climate-change adaptation strategies for improved health outcomes. Project activities The project consists of five components: 1) increasing This project’s components and subcomponents linked to knowledge and the dissemination of information about that address surveillance and information systems, reducing climate climate risks; 2) project finance for preparedness and preparedness and emergency response, and vulnerability awareness of climate and disaster risk; 3) introduction human resource capacity, factor in climate change of climate-resilient design and maintenance standards considerations. They gauge how to effectively integrate for roads and bridges; 4) emergency response and these considerations into each country’s efforts, as recovery; and 5) project management. well as ensuring that other climate change planning, programming and funding can complement and be coordinated with the programme, including the aspects provided through external partner support. Enhanced surveillance and information systems ensure that threats can be monitored and identified before they turn into epidemics, and these systems also show how climate change is impacting the transmission patterns and range of disease. Developing epidemic preparedness and emergency responses, and strengthening human resources and technical capacities, ensure that the system has the capacity to deal with the epidemics that are worsening due to climate change. Type of financial Grant Combination of grant and concessional lending instrument Estimation of Of the project's total budget, 55 per cent is considered The MDB used a proportional approach to estimate adaptation to be adaptation finance. Components 1 and 2 are that 50 per cent of the project finance is adaptation finance considered to be 100 per cent adaptation finance. finance, given that climate change is a main – but not Components 3 and 4 account for 50 per cent the only – driver of the investment. Climate change of the adaptation finance as their activities will is considered throughout the project and is a factor provide climate-resilience standards for rebuilding that influences the tasks of disease surveillance and infrastructure damaged by a climate-related disaster. epidemic preparedness. The resilience standards incorporate climate change projections, thus enabling the rebuilt structures to withstand more frequent and intense climate events. Component 5 is pro-rated. 26 2017 Joint Report on Multilateral Development Banks’ Climate Finance C ANNEX C: JOINT METHODOLOGY FOR TRACKING CLIMATE CHANGE MITIGATION FINANCE The 2017 tracking of mitigation finance is based on 5. Scope: Mitigation activities or projects can the Common Principles for Climate Change Mitigation consist of a standalone project, multiple Finance Tracking,11 referred to in this report as the standalone projects under a larger programme, Common Principles. The Common Principles were a component of a standalone project or a developed by the joint climate finance group of MDBs programme financed through a financial and by the IDFC, based on their experience of the intermediary. For example, a project with topic and with the intention of sharing them with other a total cost of US$ 100 million may have a institutions that are seeking common approaches to US$ 10 million documented component for tracking and reporting. energy efficiency improvement; in this case, only the US$ 10 million would be reported. Another The Principles consist of a set of common definitions example may be a US$ 100 million credit line to and guidelines, including a list of activities. However, a financial intermediary for renewable energy and they do not cover aspects of their implementation, pollution control investments, where it is foreseen including quality control procedures, which remain the that at least 60 per cent of the resources would sole responsibility of each institution and/or group. flow into renewable energy investments; in such The Common Principles reflect the approach that a case, only US$ 60 million would be reported. both groups (MDBs and IDFC) have been following for tracking climate change mitigation activities for the  itigation results: Reporting according to this 6. M past seven years, and are based on the application methodology and the Common Principles does of harmonised terms. While the MDBs and the IDFC not imply evidence of climate change impacts. continue to report through their respective group- Moreover, any inclusion of climate change based efforts, the joint MDB approach for mitigation impacts is not a substitute for project-specific finance reporting aligns closely with the Common theoretical and/or quantitative evidence of Principles, and is based on the following attributes: GHG emission mitigation. Projects seeking to demonstrate climate change impacts should 1. Additionality: Like the Common Principles, do so through project-specific data. this approach is activity-based. It focuses on the type of activity to be executed, and not on 7. Eligibility: Climate mitigation promotes efforts its purpose, the origin of the financial resources to reduce, limit or sequester GHG emissions to or the results. reduce the risk of climate change. Mitigation finance is based on a list of activities that are 2. Timeline: Project reporting is ex-ante project compatible with low-emission pathways.12 implementation at Board approval or at the time As a consequence, not all activities that reduce of financial commitment. GHGs in the short term are eligible to be counted towards MDB mitigation finance. 3. Conservativeness: Where data is unavailable, any uncertainty must be overcome taking a The joint methodology for tracking climate conservative approach, where under-reported change mitigation finance recognises the rather than over-reported climate finance is importance of long-term structural changes preferable. such as the shift in energy production to renewable energy technologies, and the 4. Granularity: The tracking only covers mitigation modal shift to low-carbon modes of transport. activities that are to be disaggregated from Consequently, both greenfield and brownfield non-mitigation activities as far as reasonably renewable energy and transport modal- possible. If such disaggregation is needed and shift projects are included. For projects that not possible using project-specific data, a more improve the energy and resource efficiency of qualitative or experience-based assessment technologies and processes, the methodology can be used to identify the proportion of the acknowledges that their impacts in terms of project that covers climate mitigation activities, reducing GHG emissions may be considered consistent with the principle of conservativeness. upstream and/or downstream. However, it This applies to all categories, but is of particular also acknowledges that drawing the boundary significance for energy efficiency projects. between increasing production and reducing emissions per unit of output is difficult. 11 http://www.worldbank.org/content/dam/Worldbank/document/Climate/common-principles-for-climate-mitigation-finance-tracking.pdf 12 Paris Agreement, December 2015 (FCCC/CP/2-15/L9/Rev.1, Article 2c). 2017 Joint Report on Multilateral Development Banks’ Climate Finance 27 Therefore, investments in greenfield energy and Avoiding double-counting: Where the 9.  resource efficiency are included only in a few same project, sub-project or project element cases when they help prevent a long-term lock- contributes to mitigation and adaptation, an in to high-carbon infrastructure. MDB’s individual processes will determine what proportion is counted as mitigation or as When considering brownfield energy and resource adaptation, so that the actual financing will not efficiency investments as climate finance, old be recorded more than once. Some MDBs are technologies must be replaced well before the reporting projects where the same components end of their lifetimes with new technologies that or elements contribute to both mitigation and are substantially more efficient. Alternatively, adaptation as a separate category. The MDBs are new technologies or processes must enable working on the best reporting method for projects substantially higher system efficiency compared where the same components or elements to those normally used in greenfield projects. contribute to both mitigation and adaptation. 8. Exclusions: The methodology assumes that Table A.C.1 lists the activities that MDBs have agreed care will be taken to identify projects that are are eligible to be classified as climate mitigation included in the typology list but do not mitigate finance. The table is based on a previous list that the emissions due to their specific circumstances MDBs and IDFC developed in the Common Principles (for example, hydropower plants with high for Climate Change Mitigation Finance Tracking, with methane emissions from reservoirs exceeding a number of additional clarifications. MDBs apply the GHG reductions associated with the plant’s use list of eligible activities to financing through all types of renewable energy; geothermal power plants of financial instruments. Table A.C.2 provides project with high CO2 content in the geothermal fluid case studies to illustrate how MDBs have applied the that cannot be reinjected; or biofuel projects mitigation tracking approach recently. with net high emissions taking into account production, processing and transportation). Table A.C.1. List of activities eligible for classification as climate mitigation finance Category Sub-category Eligible activities 1. Renewable 1.1. Electricity generation Wind power energy Geothermal power (only if net emission reductions can be demonstrated) Solar power (concentrated solar power, photovoltaic power) Biomass or biogas power (only if they result in net reductions in emissions, taking into account production, processing and transportation) Ocean power (wave, tidal, ocean currents, salt gradient, and so on) Hydropower plants (only if net emission reductions can be demonstrated) Renewable energy power plant retrofits 1.2. Heat production or Solar water heating and other thermal applications of solar power in all sectors other renewable energy Thermal applications of geothermal power in all sectors application Wind-driven pumping systems or similar applications Thermal applications of sustainably produced bioenergy in all sectors 1.3. Measures to facilitate New, expanded and improved transmission systems (lines, substations) integration of renewable Storage systems (battery, mechanical, pumped storage) that facilitate integration energy into grids of renewables, or increase renewable energy production New information and communication technology, smart grid and mini grid 2. Lower- 2.1. Transmission and Retrofit of transmission lines or substations and/or distribution systems to reduce carbon and distribution systems energy use and/or technical losses including improving grid stability or reliability efficient energy (in the case of capacity expansion, only the portion of the investment that is reducing generation existing losses is included) 2.2. Power plants Thermal power plant retrofit to switch from a more GHG-intensive fuel to a different and less GHG-intensive fuel type13 Conversion of existing fossil-fuel-based power plant to co-generation14 technologies that generate electricity in addition to providing heating or cooling Energy efficiency improvement in existing thermal power plant (Continued overleaf) 13 Excluding replacement of coal by coal. 14 In all co-generation projects energy efficiency is required to be substantially higher than separate production of electricity and heat. 28 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.C.1. List of activities eligible for classification as climate mitigation finance (continued) Category Sub-category Eligible activities 3. Energy 3.1. Energy efficiency Industrial energy efficiency improvements though the installation of more efficient efficiency15 in industry in existing equipment, changes in processes, reduction of heat losses and/or increased waste- facilities heat recovery and/or resource efficiency16 Installation of co-generation plants that generate electricity in addition to providing heating or cooling Replacement of an older facility (old facility retired) with a more efficient facility 3.2. Energy efficiency Energy efficiency improvement in lighting, appliances and equipment, including improvements in existing energy-management systems. commercial, public and Substitution of existing heating or cooling systems for buildings by co-generation residential buildings plants that generate electricity in addition to providing heating or cooling17 Retrofit of existing buildings: architectural or building changes that enable reduction of energy consumption 3.3. Energy efficiency Energy efficiency improvement in utilities and public services through the installation improvements in the utility of more efficient lighting or equipment sector and public services Rehabilitation of district heating and cooling systems Reduction of heat loss in utilities and/or increased recovery of waste heat Improvement in utility-scale energy efficiency through efficient energy use and loss reduction, or resource efficiency18 improvements 3.4. Vehicle fleet energy Existing vehicle, rail or boat fleet retrofit or replacement (including the use of lower- efficiency and low-carbon carbon fuels, electric or hydrogen technologies), or new vehicle, rail or boat fleets fuels with ultra-low carbon emissions, exceeding available standards. 3.5. Energy efficiency in Use of highly efficient architectural designs, energy-efficient appliances and new commercial, public equipment, and building techniques that reduce the energy consumption of and residential buildings buildings, exceeding available standards and complying with high energy efficiency certification or rating schemes 3.6. Energy audits Energy audits of energy end-users, including industries, buildings and transport systems 4. Agriculture, 4.1. Agriculture Reduction in energy use in traction (such as efficient tillage), irrigation and other aquaculture, agricultural processes forestry and Agricultural projects that improve existing carbon pools (such as rangeland land-use management, collection and use of bagasse, rice husks or other agricultural waste, reduced tillage techniques that increase carbon content of soil, rehabilitation of degraded lands, peatland restoration, and so on) Reduction of non-CO2 GHG emissions from agricultural practices and technologies (for example, paddy rice production, reduction in fertiliser use) Resource efficiency19 in agricultural processes and supply chains 4.2. Afforestation Afforestation (plantations) and agroforestry on non-forested land and reforestation and Reforestation on previously forested land biosphere conservation Sustainable forest management activities that increase carbon stocks or reduce the impact of forestry activities Biosphere conservation and restoration projects (including payments for ecosystem services) seeking to reduce emissions from the deforestation or degradation of ecosystems 4.3. Livestock Livestock projects that reduce methane or other GHG emissions (for example, manure management with biodigesters, and improved feeding practices to reduce methane emissions) 4.4. Biofuels Production of biofuels, including biodiesel and bioethanol (only if net emission reductions can be demonstrated) 4.5. Aquaculture Reduction in energy use or resource efficiency in aquaculture20 (Continued overleaf) 15  he general principle for brownfield energy efficiency activities involving the substitution of technologies or processes is that: (i) the old technologies T are replaced well before the end of their lifetime and the new technologies are substantially more efficient; or (ii) new technologies or processes are substantially more efficient than those normally used in greenfield projects. 16 The general principle for resource efficiency activities is that activities are substantially more efficient than replaced technologies or processes,  noting that efficiencies and avoided emissions may occur upstream or downstream of the project. 17 Refer to footnote 15. 18 Refer to footnote 16.  19 Refer to footnote 16.  20 Refer to footnote 16.  2017 Joint Report on Multilateral Development Banks’ Climate Finance 29 Table A.C.1. List of activities eligible for classification as climate mitigation finance (continued) Category Sub-category Eligible activities 5. Non-energy 5.1. Fugitive emissions Reduction of gas flaring or methane fugitive emissions in the oil and gas industry GHG reductions Coal-mine methane capture 5.2. Carbon capture and Projects for carbon capture and storage technology that prevent the release of storage large quantities of CO2 into the atmosphere from fossil fuel use in power generation, and process emissions in other industries 5.3. Air conditioning and Retrofit of existing industrial, commercial and residential infrastructure to switch refrigeration to cooling agent with lower potential for global warming 5.4. Industrial processes Reduction in GHG emissions resulting from industrial process improvements and cleaner production (for example, of cement or chemicals), excluding carbon capture and storage 6. Waste and 6.1. Wastewater Treatment of wastewater, including wastewater collection networks, that reduces wastewater GHG emissions (only if substantial net GHG emission reductions can be demonstrated) 6.2. Solid waste Waste management projects that capture or combust methane emissions management Waste-to-energy projects Waste collection, recycling and management projects that recover or reuse materials and waste as inputs into new products or as a resource (only if net emission reductions can be demonstrated) 7. Transport21 7.1. Urban transport Urban mass transit modal change Non-motorised transport (bicycles and pedestrian mobility) 7.2. Transport-oriented Integration of transport and urban development planning (dense development, urban development multiple land-use, walking communities, transit connectivity, and so on), leading to a reduction in the use of passenger cars Transport and travel demand-management measures dedicated to reducing pollutant emissions, including GHG emissions (such as high-occupancy vehicle lanes, congestion charging or road pricing, parking management, restriction or auctioning of licence plates, car-free city areas, low-emission zones)22 7.3. Inter-urban transport Railway transport ensuring a modal shift of freight and/or passenger transport from road or air to rail (improvement of existing lines or construction of new lines) Waterway transport ensuring a modal shift of freight and/or passenger transport from road or air to waterways (improvement of existing infrastructure or construction of new infrastructure) Bus passenger public transport ensuring a modal shift from a higher-carbon mode of transport 7.4. Infrastructure Charging stations and other infrastructure for electric vehicles, hydrogen or for low-carbon and dedicated biofuel fuelling efficient transport Digital solutions and programmes dedicated to reducing GHG emissions23 8. Low-carbon 8.1. Products or equipment Projects producing components, equipment or infrastructure dedicated to the technologies renewable and energy efficiency sectors, or low-carbon technologies 8.2. Research and Research and development of renewable-energy or energy-efficiency technologies, development or low-carbon technologies (Continued overleaf) 21 Modal shift includes prevention of future shifts to high-carbon modes. 22 General traffic management is not included. This category is for demand management to reduce GHG emissions, assessed on a case-by-case basis. 23 Dedicated measures can mean that a proportional approach may be used to take account of the fact that reduction of GHG emissions may be one of  several project objectives. 30 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.C.1. List of activities eligible for classification as climate mitigation finance (continued) Category Sub-category Eligible activities 9. Cross-cutting 9.1. Support for national, National, sectoral or territorial policies/planning/action plans/planning/ issues regional or local policy, institutions dedicated to mitigation such as NDCs, NAMAs and plans for scaling up through technical renewable energy assistance or policy Energy sector policies and regulations leading to climate change mitigation or the lending mainstreaming of climate action, such as energy efficiency standards or certification schemes; energy efficiency procurement schemes; renewable energy policies, power market reforms to enable renewable energy Systems for monitoring the emission of greenhouse gases Efficient pricing of fuels and electricity (such as subsidy rationalisation, efficient end-user tariffs, and efficient regulations on electricity generation, transmission or distribution, and on carbon pricing) Education, training, capacity-building and awareness-raising on climate change mitigation or sustainable energy or sustainable transport; mitigation research Other policy and regulatory activities, including those in non-energy sectors, leading to climate change mitigation or mainstreaming of climate action, such as fiscal incentives for low-carbon vehicles, sustainable afforestation standards 9.2. Carbon finance Carbon markets and finance (purchase, sale, trading, financing and other technical assistance); includes all activities related to compliance-grade carbon assets and mechanisms 9.3. Supply chain Measures in existing supply chains dedicated to improvements in energy efficiency or resource efficiency24 upstream or downstream, leading to an overall reduction in GHG emissions 10. 10.1. Other activities Any other activity if agreed by MDBs may be counted as climate mitigation finance Miscellaneous with net greenhouse-gas when the results of ex-ante GHG accounting (undertaken according to commonly reduction agreed methodologies) show emission reductions that are higher than a commonly agreed threshold, and the project consistent with a pathway towards development characterised by low GHG emissions. 24 T  he general principle for resource efficiency activities is that activities are substantially more efficient than substituted technologies or processes, noting that efficiencies and avoided emissions may occur upstream or downstream of the project. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 31 Table A.C.2. Case studies in tracking mitigation finance Programmatic support for structural reforms Project focus Energy efficiency in the electricity sector Sector New hospital buildings Renewable energy and energy efficiency Brief description This project financed a healthcare infrastructure The general objective of this operation is to support of project public-private partnership (PPP) project which involved the government in implementing sector reforms the design, construction, equipping, financing and and policies that are needed to enhance financial maintenance of an integrated laboratory campus. The sustainability, operational efficiency, and security of bank has been involved in establishing energy efficiency supply in the electricity sector. The specific objectives are requirements with the relevant ministry. to: (i) strengthen the sector’s institutional capacity and regulatory framework; (ii) enhance financial sustainability and operational efficiency; and (iii) adopt energy policies aimed at ensuring a secure supply of electricity. Classification (1) 3. Energy efficiency (1) 9. Cross-cutting issues (as in Annex C, 3.5. Energy efficiency in new commercial, (2)  9.1. Support for national, regional or local policy (2)  Table A.C.1.): public and residential buildings through technical assistance or policy lending (1) Category Use of highly efficient architectural designs, (3)  Energy sector policies and regulations that lead to (3)  (2) Sub-Category energy-efficient appliances and equipment, climate change mitigation or to the mainstreaming of and and building techniques that reduce the energy climate action, such as: energy efficiency standards or (3) Eligible consumption of buildings, exceeding available certification schemes; energy efficiency procurement Activity standards and complying with high energy efficiency schemes; renewable energy policies and power certification or rating schemes. market reforms to enable renewable energy. Type of financial Investment loan Policy-based lending instrument Calculation The MDB provided a €75 million loan to fund the Eighteen per cent of the project, or US$ 9 million, of mitigation project for the following measures, which exceed was classified as mitigation finance, because 2 of the finance, national standards: programme’s 11 policy commitments were related including basis • advanced thermal protection, low-emissive glazing to energy efficiency and renewable energy. (for example, •building integrated solar thermal and solar eligible photovoltaic installations components) •highly efficient boilers and chillers and waste-heat recovery •on-site combined cooling, heating and power generation •water-saving techniques: water-saving sensor-control taps, rainwater harvesting. Based on specific project components, 71.4 per cent of the loan was counted as mitigation finance. Type of mitigation MDB’s own resources MDB’s own resources finance (own resources, co-finance) 32 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.C.2. Case studies in tracking mitigation finance (continued) Supporting energy and water efficiency investments Project focus in private households Integrated forest and landscape management Sector Utilities Agriculture, forestry and land-use Brief description This operation is the provision of a credit line to a The project aims to improve the practices and enabling of project financial intermediary dedicated mainly to residential environment for forest and land management in energy efficiency and small renewables investments. targeted landscapes. The integrated approach to The programme aims to provide financing to private landscape management promoted by this project individuals or small and medium-sized enterprises ensures that practices are environmentally sustainable (SMEs) to invest chiefly in energy efficiency and in and provide sufficient economic incentives for local renewables improvements and installations for their communities in the long term. own use. The project finances activities at two levels: landscape-level activities focused on promoting (i)  integrated management of two landscapes (ii) national-level activities focused on strengthening the enabling conditions for sustainable forest management. Classification (1) 1. Renewable energy (1) 4. Agriculture, forestry and land-use (as in Annex C, (2) 1.1. Electricity generation 4.1. Agriculture and 4.2. Afforestation and (2)  Table A.C.1.): Solar power (concentrated solar power, photovoltaic (3)  reforestation and biosphere conservation (1) Category power) or solar water-heating and other thermal Improvement of existing carbon pools; afforestation; (3)  (2) Sub-category applications of solar power in all sectors. and sustainable forest-management activities that and increase carbon stocks or reduce the impact of (1) 3. Energy efficiency (3) Eligible forestry activities. 3.1. Energy efficiency improvements in existing (2)  activity commercial, public and residential buildings Retrofit of existing buildings: architectural (3)  or building changes that substantially reduce energy consumption. Type of financial Credit line Investment loan instrument Calculation As per the requirements of the financial contract, The MDB will provide a US$ 15 million loan to address of mitigation the intermediary agreed to a minimum allocation multiple drivers of deforestation in local communities finance, of 85 per cent of the credit line to activities eligible and improve both the local and national capacity for including basis for classification as climate action (as defined per sustainable management of forests and land. Of this (for example, contractual conditions). Of the entire credit line’s US$ 15 million, US$ 6.1 million finances activities in eligible volume of €30 million, this equates to €26 million two target landscapes, such as the regularisation of components) allocated to climate action. land tenure, promotion of multipurpose planted forests, and sustainable production of charcoal. Meanwhile, US$ 6.45 million finances the national-level activities to strengthen the country’s capacity for forest governance and management, such as the land-use plan development and forest information system. Including the project-management component, 100 per cent of the MDB financing is counted as mitigation finance. Type of mitigation MDB’s own resources MDB’s own resources and external sources finance (own resources, co-finance) Specific features Through this credit line the MDB was able to support The project endorses an integrated landscape energy efficiency improvements and renewable management approach to address the interlinked installations in private households and SMEs. drivers of deforestation in different sectors (forestry, agriculture, and energy) and to facilitate coordination between the national and local activities. The project ensures multi-stakeholder engagement in planning land use to foster a common vision of managing forests and land within communities. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 33 D ANNEX D: FINANCE THAT BENEFITS BOTH ADAPTATION AND MITIGATION The MDBs identify some components and/or both mitigation and adaptation as a separate category subcomponents, or elements or proportions of (see Table A.D.1). The MDBs continue to work on the projects, which help to reduce GHG emissions while best reporting method for such projects. also reducing climate vulnerability, thereby delivering dual benefits of mitigation and adaptation. Where For 2017, the EBRD and IDBG have tracked dual- the same project, sub-project or project element benefit figures separately according to their internal contributes to both mitigation and adaptation, the systems. The other MDBs have split the financed MDB’s individual processes will determine which amount between mitigation and adaptation. In both proportion is counted as mitigation or as adaptation cases, there is no double counting. Table A.D.2 so that the actual financing will not be double- includes more detail on the instrument types used in counted. Some MDBs report projects where the same adaptation, mitigation and dual-benefit finance. components or elements or proportions contribute to Table A.D.1. MDB adaptation, mitigation and dual-benefit climate finance (in US$ million) MDB Adaptation finance Mitigation finance Dual-benefit finance Total ADB 998 4,236 – 5,234 AfDB 783 1,564 – 2,347 EBRD 423 4,105 73 4,601 EIB 150 5,327 – 5,477 IDBG 761 3,429 158 4,348 WBG 4,084 9,129 – 13,213 Total 7,200 27,789 231 35,219 Note: Numbers may not add up due to rounding. Table A.D.2. MDB adaptation, mitigation and dual-benefit climate finance (in US$ million) Instrument type Adaptation finance Mitigation finance Dual-benefit finance Total Investment loan 5,979 22,336 118 28,433 Policy-based lending 407 1,528 79 2,014 Grant 673 751 1 1,425 Guarantee 16 1,490 – 1,506 Equity 8 577 5 590 Line of credit 27 914 19 960 Other 88 193 9 291 Total 7,200 27,789 231 35,219 Note: Numbers may not add up due to rounding. 34 2017 Joint Report on Multilateral Development Banks’ Climate Finance E ANNEX E: TYPES OF INSTRUMENT The types of financial instrument containing climate d) Guarantees: In this report, non-commercial finance as reported for 2017 include the following: risk guarantees are defined as insurance or guarantee instruments that cover investors Advisory services: MDB advisory services a)  against perceived political risks including, but include advising national and local governments not limited to, the risks of transfer restriction on a variety of topics, for instance how (including inconvertibility), expropriation, war to improve their investment climate and and civil disturbance, breach of contract, strengthen basic infrastructure. The MDB tracks and failure to honour financial obligations, and reports the costs of managing advisory and may provide credit enhancement and programmes, which may consist of staff time, improve ratings for capital market transactions. studies, and training with clients. Similar to Commercial or credit-risk guarantees refer investments, some programmes are 100 per to instruments covering all other risks not cent climate-related and some have a climate described above. component tracked in the overall programme budget. In the case of IFC,25 for the sake of Investment loans: Loans are transfers for e)  simplicity, the Joint Report records all climate which repayment with interest is required. finance flows through IFC’s advisory services Investment loans can be used for any as “external resources managed by IFC” and development activity with the overall objective of because of the difficulties in collecting data and promoting sustainable social and/or economic defining the boundary of IFC’s impact, advisory development, in line with the MDBs’ mandate. services are not included in the IFC climate co- finance analysis. Lines of credit: Lines of credit provide a f)  guarantee that funds will be made available b) Equity: Ownership interest in an enterprise but no financial asset exists until funds are that represents a claim on the assets of the actually advanced. entity in proportion to the number and class of shares owned. Policy-based lending (PBL): PBL provides g)  rapidly disbursing financing to help a borrower c) Grants: Transfers made in cash, goods or address actual or anticipated requirements for services for which no repayment is required. development finance of domestic or external Grants are provided for investment support, origins. This financing supports a programme policy-based support and/or technical of policy and institutional actions in a particular assistance and advice. theme or sector of national policy, for instance, actions to improve the investment climate for renewable energy. While there is no direct link between lending resources and the cost of policy actions undertaken, the disbursements of PBLs are conditional on the borrower’s fulfilment of its policy commitments in the lending agreement. 25 IFC climate finance is included in the climate finance reported by WBG. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 35 F ANNEX F: CLIMATE CO-FINANCE Total financing of climate activity includes climate Mobilisation for tracking the private share of climate co-finance, that is, the amount of financial resources co-finance. This methodology focuses on assessing that external entities contribute. The MDBs are the private finance mobilised by an MDB, on a project- implementing the definitions and recommendations by-project basis, such as private direct mobilisation of the MDB Taskforce on Private Investment and private indirect mobilisation.26 Figure A.F.1: Figure Total 3: Total activity activity financing, financing, by type by type of finance of finance Private co-financing Private indirect mobilisation Public co-financing (including private sponsor contribution) MDB climate finance External resources Private direct mobilisation managed by MDB (public) Own account 26 h  ttp://documents.worldbank.org/curated/en/495061492543870701/pdf/ 114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPrivateInvestmentMobilizationMethodologyReferenceGuide.pdf 36 2017 Joint Report on Multilateral Development Banks’ Climate Finance G ANNEX G: GEOGRAPHICAL COVERAGE OF THE REPORT Inclusion of economies in Annex G, and terms and opinion by the MDBs or their members concerning the names used in this report to refer to geographical or status of any country, territory, grouping and unit, or other territories, political and economic groupings delimitation of its borders, or sovereignty. and units, do not constitute and should not be construed as constituting an express or implied Economy-level information on MDB climate finance position, endorsement, acceptance or expression of for 2015-17 is presented in Table A.G.4. Table A.G.1. List of economies covered by at least one of the MDBs and taken into account for climate finance data presented in this report27 East Asia and the Pacific Cambodia Kiribati Nauru Thailand China Laos Palau Timor-Leste Cook Islands Malaysia Papua New Guinea Tonga Federated States of Marshall Islands Philippines Tuvalu Micronesia Fiji Mongolia Samoa Vanuatu Indonesia Myanmar Solomon Islands Vietnam EU-12 Bulgaria Estonia Latvia Romania Croatia Greece Lithuania Slovak Republic Cyprus Hungary Poland Slovenia Latin America and the Caribbean Anguilla Colombia Haiti Saint Kitts and Nevis Antigua and Barbuda Costa Rica Honduras Saint Lucia Argentina Dominica Jamaica Saint Vincent and the Grenadines Bahamas Dominican Republic Mexico Suriname Barbados Ecuador Montserrat Trinidad and Tobago Belize El Salvador Nicaragua Uruguay Bolivia Grenada Panama Venezuela Bonaire, Saint Eustatius Guadeloupe Paraguay and Saba Brazil Guatemala Peru Chile Guyana Saint-Barthélemy Middle East and North Africa Algeria Israel Morocco Tunisia Bahrain Jordan Oman United Arab Emirates Egypt Kuwait Qatar Western Sahara Iran Lebanon Saudi Arabia Yemen Iraq Libya Syria West Bank and Gaza (Continued overleaf) 27 The list of EU countries shown here for which data is presented in this report excludes other EU countries where the EIB supports climate action. 2017 Joint Report on Multilateral Development Banks’ Climate Finance 37 Table A.G.1. List of economies covered by at least one of the MDBs and taken into account for climate finance data presented in this report27 (continued) South Asia Afghanistan Bhutan Maldives Pakistan Bangladesh India Nepal Sri Lanka Non-EU Europe and Central Asia28 Albania FYR Macedonia Moldova Turkey Armenia Georgia Montenegro Turkmenistan Azerbaijan Kazakhstan Russia Ukraine Belarus Kyrgyz Republic Serbia Uzbekistan Bosnia and Herzegovina Kosovo Tajikistan Sub-Saharan Africa Angola Djibouti Malawi Senegal Benin Equatorial Guinea Mali Seychelles Botswana Eritrea Mauritania Sierra Leone Burkina Faso Ethiopia Mauritius South Africa Burundi Gabon Mayotte Somalia Cameroon Gambia Mozambique South Sudan Cape Verde Ghana Namibia Sudan Central African Republic Guinea Niger Swaziland Chad Guinea-Bissau Nigeria Tanzania Comoros Kenya Réunion Togo Congo Lesotho Rwanda Uganda Côte d’Ivoire Liberia São Tomé and Príncipe Zambia Democratic Republic Madagascar Saint Helena Zimbabwe of the Congo Multi-regional refers to MDB operations implemented across two or more of the regions above, including activities with a global scope. 28 Reported as “(OTHER) Europe and Central Asia” in the 2011 and 2012 reports. 38 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.G.2. Economies categorised as least-developed economies, or small island states, or both Least-developed economy Afghanistan Democratic Republic Madagascar Sierra Leone of the Congo Angola Djibouti Malawi Somalia Bangladesh Equatorial Guinea Mali South Sudan Benin Eritrea Mauritania Sudan Bhutan Ethiopia Mozambique Tanzania Burkina Faso Gambia Myanmar Togo Burundi Guinea Nepal Uganda Cambodia Laos Niger Yemen Central African Republic Lesotho Rwanda Zambia Chad Liberia Senegal Both least-developed economy and small island state Comoros Kiribati Timor-Leste Guinea Bissau São Tomé and Príncipe Tuvalu Haiti Solomon Islands Vanuatu Small island state American Samoa Cuba Martinique Saint Lucia Anguilia Dominica Mauritius Saint Vincent and the Grenadines Antigua and Berbuda Dominican Republic Montserrat Samoa Aruba Federated States of Nauru Seychelles Micronesia Bahamas Fiji New Caledonia Suriname Barbados Grenada Niue Tonga Belize Guyana Palau Trinidad and Tobago Cape Verde Jamaica Papua New Guinea Cayman Islands Maldives Puerto Rico Cook Islands Marshall Islands Saint Kitts and Nevis Least-developed economies are defined according to the UNFCCC list and small island states are defined according to the Alliance of Small Island States (AOSIS) list,29 excluding developed economies. Note that some least-developed economies are also small island states, as shown in Table A.G.2. 29 http://unfccc.int/cooperation_and_support/ldc/items/3097.php 2017 Joint Report on Multilateral Development Banks’ Climate Finance 39 Table A.G.3. Economies categorised in accordance with World Bank groupings High income Andorra Estonia Liechtenstein Saudi Arabia Antigua and Barbuda Faroe Islands Lithuania Seychelles Aruba Finland Luxembourg Singapore Australia France Macao China Sint Maarten (Dutch part) Austria French Polynesia Malta Slovak Republic Bahamas Germany Monaco Slovenia Bahrain Gibraltar Netherlands South Korea Barbados Greece New Caledonia Spain Belgium Greenland New Zealand Sweden Bermuda Guam Northern Mariana Islands Switzerland British Virgin Islands Hong Kong China Norway Taipei China Brunei Hungary Oman Trinidad and Tobago Canada Iceland Palau Turks and Caicos Islands Cayman Islands Ireland Poland United Arab Emirates Channel Islands Isle of Man Portugal United Kingdom Chile Israel Puerto Rico United States of America Curaçao Italy Qatar United States Virgin Islands Cyprus Japan Saint Kitts and Nevis Uruguay Czech Republic Kuwait Saint Martin (French part) Denmark Latvia San Marino Upper-middle income Albania Croatia Kazakhstan Romania Algeria Cuba Lebanon Russia American Samoa Dominica Libya Saint Lucia Argentina Dominican Republic Malaysia Saint Vincent and the Grenadines Azerbaijan Ecuador Maldives Samoa Belarus Equatorial Guinea Marshall Islands Serbia Belize Fiji Mauritius South Africa Bosnia and Herzegovina FYR Macedonia Mexico Suriname Botswana Gabon Montenegro Thailand Brazil Grenada Namibia Tonga Bulgaria Guyana Nauru Turkey China Iran Panama Turkmenistan Colombia Iraq Paraguay Tuvalu Costa Rica Jamaica Peru Venezuela (Continued overleaf) 40 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.G.3. Economies categorised in accordance with World Bank groupings (continued) Lower-middle income Angola Georgia Moldova Syria Armenia Ghana Mongolia Tajikistan Bangladesh Guatemala Morocco Timor-Leste Bhutan Honduras Myanmar Tunisia Bolivia India Nicaragua Ukraine Cape Verde Indonesia Nigeria Uzbekistan Cambodia Jordan Pakistan Vanuatu Cameroon Kenya Papua New Guinea Vietnam Congo Kiribati Philippines West Bank and Gaza Côte d'Ivoire Kosovo São Tomé and Príncipe Yemen Djibouti Kyrgyz Republic Solomon Islands Zambia Egypt Laos Sri Lanka El Salvador Lesotho Sudan Federated States of Mauritania Swaziland Micronesia Low income Afghanistan Eritrea Malawi Sierra Leone Benin Ethiopia Mali Somalia Burkina Faso Gambia Mozambique South Sudan Burundi Guinea Nepal Tanzania Central African Republic Guinea-Bissau Niger Togo Chad Haiti North Korea Uganda Comoros Liberia Rwanda Zimbabwe Democratic Republic Madagascar Senegal of the Congo 2017 Joint Report on Multilateral Development Banks’ Climate Finance 41 Table A.G.4. Climate finance by economy, for 2015, 2016 and 2017 (in US$ million) The list below includes economies that received climate finance in 2015, 2016 and 2017. Some economies may not appear on this list even though they are covered by one or more of the MDBs. Economy 2015 2016 2017 Total Economy 2015 2016 2017 Total Afghanistan – 173 147 320 Ethiopia 79 206 192 476 Albania 110 174 15 298 FYR Macedonia 27 14 8 49 Algeria 1 – – 1 Fiji 53 31 15 98 Angola – 15 72 87 Gabon – 43 24 67 Argentina 314 508 2,276 3,099 Gambia – 5 9 13 Armenia 108 45 132 285 Georgia 109 187 88 383 Azerbaijan 16 171 250 438 Ghana 32 72 81 184 Bahamas 1 1 44 46 Global 169 77 – 247 Bangladesh 899 1,315 200 2,414 Greece – 91 673 765 Barbados 1 5 0 7 Grenada – – 1 1 Belarus 43 49 7 100 Guatemala 0 3 22 25 Belize 51 4 20 75 Guinea – 7 17 24 Benin 21 3 44 69 Guinea-Bissau 10 – 3 13 Bhutan 2 17 7 25 Guyana 1 7 2 10 Bolivia 405 373 321 1,098 Haiti 41 4 143 188 Bosnia and 27 95 101 223 Honduras 253 44 46 343 Herzegovina Hungary 497 155 31 683 Botswana – – 143 143 India 1,948 3,017 2,678 7,642 Brazil 548 914 766 2,228 Indonesia 674 578 873 2,124 Bulgaria 58 156 112 326 Iraq 8 610 321 939 Burkina Faso 9 7 166 181 Israel 160 – – 160 Burundi 25 22 28 75 Jamaica 21 57 52 129 Cambodia 46 85 86 218 Jordan 238 412 517 1,168 Cameroon 2 17 329 349 Kazakhstan 438 521 389 1,348 Cape Verde 1 – 15 17 Kenya 260 159 581 1,000 Central African 7 – 10 18 Republic Kiribati – 11 – 11 Chad 6 – – 6 Kosovo 74 56 31 162 Chile 119 153 208 480 Kyrgyz Republic 73 179 55 307 China 1,091 2,349 2,305 5,745 Laos 106 13 40 159 Colombia 182 904 747 1,834 Latvia 247 2 86 336 Comoros 5 – 4 9 Lebanon 303 27 82 412 Congo – 25 2 27 Lesotho – 11 5 16 Cook Islands – 4 12 16 Liberia 3 68 26 97 Costa Rica 200 0 5 206 Lithuania 183 215 95 494 Côte d’Ivoire 5 73 296 374 Madagascar – 37 131 168 Croatia 174 16 68 258 Malawi 58 1 210 268 Cyprus 22 27 46 95 Maldives 5 35 19 59 Czech Republic 91 – – 91 Mali 0 9 104 114 Marshall Islands 2 1 21 23 Democratic Republic of 10 153 128 291 the Congo Mauritania – 6 – 6 Djibouti – 2 0 2 Mauritius 9 – – 9 Dominican Republic 1 137 3 141 Mexico 330 277 1,211 1,818 Ecuador 582 325 27 934 Moldova 45 106 110 262 Egypt 511 693 1,585 2,789 Mongolia 13 44 150 206 El Salvador – 0 29 29 Montenegro 62 1 68 131 Eritrea – – 7 7 Morocco 914 729 668 2,310 Estonia 47 89 5 141 Mozambique 111 51 55 216 42 2017 Joint Report on Multilateral Development Banks’ Climate Finance Table A.G.4: Climate finance by economy, for 2015, 2016 and 2017 (in US$ million) (continued) The list below includes economies that received climate finance in 2015, 2016 and 2017. Some economies may not appear on this list even though they are covered by one or more of the MDBs. Economy 2015 2016 2017 Total Economy 2015 2016 2017 Total Multi-regional 147 52 193 391 Turkmenistan 1 1 6 8 Myanmar 81 107 212 400 Tuvalu 7 3 1 11 Namibia – – 58 58 Uganda 124 15 166 305 Nauru – – 3 3 Ukraine 940 865 833 2,638 Nepal 567 111 204 882 Uruguay 139 100 113 352 Nicaragua 207 49 235 491 Uzbekistan 61 55 270 386 Niger 12 163 47 222 Vanuatu 23 51 17 91 Nigeria 1 102 34 137 Venezuela 0 – – 0 Pakistan 1,161 673 1,018 2,851 Vietnam 385 1,211 862 2,458 Panama 112 25 350 488 West Bank and Gaza 5 1 2 8 Papua New Guinea 36 6 127 170 Zambia 68 20 140 228 Paraguay 4 4 51 59 Zimbabwe 12 18 24 54 Peru 85 309 306 700 Total 25,096 27,441 35,219 87,756 Philippines 657 638 167 1,461 Note: The list of EU countries shown here for which data is presented in this report excludes other EU countries where the EIB supports Poland 1,189 1,806 1,562 4,557 climate action. Regional 1,427 409 1,436 3,272 Romania 249 196 887 1,332 Russia 55 0 0 56 Rwanda 63 57 203 322 Saint Lucia – – 2 2 Saint Vincent and the – – 9 9 Grenadines Samoa 22 – 4 25 São Tomé and Príncipe 4 6 11 20 Senegal 41 16 679 736 Serbia 100 143 290 534 Seychelles 25 – – 25 Sierra Leone 0 10 2 13 Slovak Republic 302 87 53 442 Slovenia 154 18 47 219 Solomon Islands – 10 36 45 Somalia – 8 – 8 South Africa 55 59 103 217 South Sudan – 1 39 41 Sri Lanka 84 212 574 870 Sudan 5 – 13 18 Suriname 1 8 26 34 Swaziland 3 31 – 34 Tajikistan 149 34 232 415 Tanzania 243 138 549 930 Thailand 176 91 130 396 Timor-Leste – 5 9 14 Togo – – 6 6 Tonga 15 8 1 24 Trinidad and Tobago 1 1 – 2 Tunisia 19 96 387 502 Turkey 2,582 2,135 1,790 6,507 2017 Joint Report on Multilateral Development Banks’ Climate Finance 43 NOTES 44 2017 Joint Report on Multilateral Development Banks’ Climate Finance European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom www.ebrd.com