April 2014 Climate Finance Update
30 April 2014: During the month of April, the International Fund for Agricultural Development (IFAD), the African Development Bank (AfDB), the World Bank, and the European Commission announced funding for several climate-related projects or initiatives. In addition, AfDB released its 2013 Climate Investment Funds (CIF) Annual Report.
In partnership with the Government of Rwanda, IFAD launched the Climate Resilient and Post-Harvest Agribusiness Support Project (PASP), which will aid over 32,400 rural households (155,518 people) in reducing post-harvest losses. According to its National Adaptation Programme of Action (NAPA), improving post-harvest management is one of Rwanda's key climate change adaptation strategies. PASP is being supported by IFAD with a loan of US$13.45 million and a grant of equal value. IFAD's Adaptation for Smallholder Agriculture Program (ASAP) will also provide US$14 million, split evenly between a grant and loan. [IFAD Press Release]
On 15 April 2014, the AfDB Board of Directors approved the new Africa Climate Change Fund (ACCF), which is capitalized for an initial three-year period with €4.275 million from Germany. According to AfDB, the ACCF will support vulnerable African countries, many of which face barriers to accessing international climate finance, in their climate resilience and low-carbon development projects. Climate finance readiness will be the focus of the first call for proposals. The ACCF will also provide funding for, inter alia: climate change and green growth mainstreaming; knowledge management and information sharing; capacity building; analytical work related to green growth; advocacy; and outreach. Governments, non-governmental organizations (NGOs), research institutions, and regional organizations are eligible to receive grants; they can either directly implement the project, or the AfDB can undertake the project on their behalf. [AfDB Press Release]
On 22 April 2014, Sri Lanka became the first South Asian country to access the World Bank's Development Policy Loan with a Catastrophe Deferred Drawdown Option (DPL with a CAT DDO), a US$102 million facility for financing disaster relief in a state of emergency. The DPL with a CAT DDO provides immediate payouts following a natural disaster. Countries can draw partially or fully on this line of credit over a period of three years, renewing up to four times in a 15-year window. According to the World Bank, Sri Lanka's growth and development is regularily threatened by floods and droughts. The facility was approved by the World Bank's Board of Executive Directors along with a US$110 million Climate Resilience Improvement Project (CRIP), which will finance both short and long term interventions to reduce climate and disaster risk. [World Bank Press Release]
On 30 April, the European Commission approved €282.6 million for environment and climate projects in the 28 EU member States. The funds, held by the EU's environment fund, LIFE+, will support 225 diverse projects, from environmental policy programmes, climate change, nature conservation, and biodiversity projects, to communication and outreach. The Commission is supporting 33 climate change projects with €41.2 million. The LIFE+ programme 2014-2020 is expected to oversee the investment of €850 million in climate action. [European Commission Press Release]
The 2013 AfDB CIF Annual Report was published on 10 April 2014, indicating that 16 African countries are receiving support to carry out Investment Plans, which guide countries in selecting projects in line with national priorities. As an implementing agency for the CIF, AfDB is supporting clean energy, sustainable forest management (SFM), REDD+, and climate resilience projects with a total investment of US$1.1 billion, according to the Report. CIF contributes a further US$0.5 billion. The AfDB CIF portfolio includes 13 projects, with 12 in the pipeline for approval. [AfDB Press Release] [AfDB CIF Annual Report 2013 - Financing Change - The AfDB and CIF for a Climate-Smart Africa]