2 021
JOINT REPORT
ON MULTILATERAL
DEVELOPMENT
BANKS’
CLIMATE
FINANCE
OCTOBER 2022
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 Asian Infrastructure Investment Bank (AIIB), the Council of
Europe Development Bank (CEB), 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), the New Development Bank (NDB) and the World Bank Group (WBG).
The findings, interpretations and conclusions expressed in this work do not
necessarily reflect the official views of the multilateral development banks’
boards of executive directors or the governments they represent.
JOINT REPORT ON MULTILATERAL
DEVELOPMENT BANKS’
CLIMATE
FINANCE
2 021
iv Abbreviations and acronyms
v Preface
vii Executive summary
1 1. OVERVIEW OF MDB METHODOLOGIES FOR TRACKING CLIMATE FINANCE
1 1.1. Finance for adaptation to climate change
1 1.2. Finance for the mitigation of climate change
3 1.3. Methodology for climate co-finance
5 2. MDB CLIMATE FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
5 2.1. Total MDB climate finance
6 2.1.1. MDB climate finance by type of recipient or borrower
7 2.1.2. MDB climate finance by type of instrument
8 2.1.3. MDB climate finance by region
8 2.2. MDB adaptation finance
12 2.3. MDB mitigation finance
16 2.4. Climate co-finance
19 3. MDB CLIMATE FINANCE IN HIGH-INCOME ECONOMIES, 2021
19 3.1. Total MDB climate finance
20 3.1.1. MDB climate finance by type of recipient or borrower
21 3.1.2. MDB climate finance by type of instrument
22 3.1.3. MDB climate finance by region
22 3.2. MDB adaptation finance
26 3.3. MDB mitigation finance
29 3.4. Climate co-finance
31 ANNEX A. Further detailed analysis of total MDB climate finance data, 2021
45 ANNEX B. Geographical coverage of the report, 2021
57 ANNEX C. Methodologies and definitions
CONTENTS
ADB Asian Development Bank
AfDB African Development Bank
AIIB Asian Infrastructure Investment Bank
CCF Climate co-finance
CEB Council of Europe Development Bank
CIF Climate Investment Funds
CO
2
Carbon dioxide
EBRD European Bank for Reconstruction and Development
EIB European Investment Bank
EU European Union
€ Euro
FY Fiscal year
GEF Global Environment Facility
GCF Green Climate Fund
GHG Greenhouse gas
IDB Inter-American Development Bank
IDBG Inter-American Development Bank Group, composed of the IDB, IDB Lab and IDB Invest
IDB Invest The private sector arm of the IDBG
IDB Lab The innovation laboratory of the IDBG
IDFC International Development Finance Club
IFC International Finance Corporation
IsDB Islamic Development Bank
MDBs Multilateral development banks
MIGA Multilateral Investment Guarantee Agency
NAMAs Nationally Appropriate Mitigation Actions
NDCs Nationally Determined Contributions
NDB New Development Bank
UNFCCC United Nations Framework Convention on Climate Change
$ United States dollar
WB World Bank, composed of the International Bank for Reconstruction and Development (IBRD), and the
International Development Association (IDA)
WBG World Bank Group, composed of the WB, IFC and MIGA
ABBREVIATIONS AND ACRONYMS
The Joint Report on Multilateral Development Banks’ Climate Finance
is an annual collaborative effort to publish multilateral development
bank climate finance figures, together with a clear explanation of the
methodologies for tracking this finance. This joint report, alongside the
banks’ publication of climate finance statistics in their respective corporate
media, is intended to track progress in relation to their climate finance
targets such as those announced at COP21 and the greater ambition
pledged for the post-2020 period.
Since the first Joint Report on Multilateral Development Banks’ Climate Finance, which covered
climate finance for 2011, figures reported for climate finance have been based on a joint MDB
climate finance tracking and reporting methodology. This methodology has been gradually updated
as and when need arose, in particular in light of experience and global dynamics in this space.
From the 2014 edition onwards, the methodology has included reporting on climate co-finance
alongside MDB climate finance. The first eight editions of the report provided climate finance data
on a group of emerging and developing economies.
A detailed breakdown is provided throughout the report, differentiating between climate finance
going to low- and middle-income economies and high-income economies. This edition of the report
presents the multilateral development banks’ climate finance commitments data in two separate
chapters based on the economies where these banks operate; the first with data for low- and
middle-income economies, and the second for high-income economies.
In 2015, the multilateral development banks and the International Development Finance Club (IDFC)
agreed on a set of common principles for finance to mitigate climate change and an initial set
of common principles for finance to support adaptation to climate change. Their intention was
to take a common approach to tracking reporting on climate finance. In December 2019, the
multilateral development banks
1
and members of the IDFC published the joint Framework and
Principles for Climate Resilience Metrics in Financing Operations, setting out the core concepts and
characteristics of climate resilience metrics alongside a high-level framework for such metrics in
financing operations.
The multilateral development banks also conducted a review of the joint methodology for
tracking adaptation finance over the 2021-2022 period. This review aims to take stock of recent
developments in the field of adaptation finance, the MDBs’ efforts to support climate adaptation
and resilience through a wide range of sectors beyond traditional infrastructure, and the increasing
diversity of financial conditions that are used to support adaptation and resilience. This review
complements ongoing efforts by the multilateral development banks to enhance the robustness
and transparency of climate finance tracking and reporting, and support climate action, in line
with the objectives of the Paris Agreement. Building on the review, the Climate Change Adaptation
Working Group has commenced an update of the tracking methodology for climate adaptation to
reflect the evolving understanding of adaptation and the advancements in the fields of adaptation
finance. The working group aims to complete the methodology update during 2022.
The Climate Change Mitigation Working Group finalised its review of the tracking methodology for
climate mitigation finance and commenced tracking using the new methodology on 1 January 2021
for the AfDB, ADB, AIIB, EBRD, EIB, IDBG, IsDB and NDB and on 1 July 2021 for the WBG to
coincide with the institutions’ new fiscal years. The new version of the methodology published on
18 October 2021 includes a more granular breakdown of types of eligible activity, clear criteria that
must be met and additional guidance to facilitate the application of these criteria.
1 The AfDB, ADB, AIIB, EBRD, EIB, IDBG and IsDB.
PREFACE
PREFACE |
v
The multilateral development banks will continue to improve their tracking and reporting of climate
finance as part
2
of their commitments to ensure consistent financial flows to the countries’ long-
term, low-carbon and climate-resilient development pathways, as established in Article 2.1(c) of
the Paris Agreement.
The multilateral development banks announced their climate action targets for 2025 at the UN
Secretary General’s Climate Action Summit in New York in September 2019. This resulted in an
expected collective total of $50 billion for low-income and middle-income economies, and at
least $65 billion of climate finance globally, with an expected doubling in adaptation finance to
$18 billion, and private mobilisation of $40 billion. In 2021, the MDBs already surpassed these
collective expectations on climate finance — both for low- and middle-income economies and
globally. They also notably increased adaptation finance to over $19 billion. The table in Annex C.6
summarises post-2020 MDB climate commitments.
The banks presented updates on their work to align with the Paris Agreement at COP25 in
December 2019 and COP26 in November 2021. This included the key principles and criteria of
their approach, as well as some draft methodological guidance on how to operationalise it (the
MDB Paris Alignment Framework).
3, 4
Financial flows presented in this report are based on
methodologies that are separated and distinct from the MDB Paris Alignment Framework. The
multilateral development banks will develop their own operational methodologies to implement the
MDB “Paris Alignment Framework” and will set up processes to ensure that activities they report as
climate finance are those that are consistent with the goals of the Paris Agreement.
This 2021 edition of the Joint Report on Multilateral Development Banks’ Climate Finance was
prepared by the European Investment Bank together with the following partners: the African
Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the
Council of Europe Development Bank, the European Bank for Reconstruction and Development, the
Inter-American Development Bank Group, the Islamic Development Bank, the New Development
Bank and the World Bank Group.
October 2022
2 Accelerated contribution to the transition through climate finance” – Building Block 3 of MDBs’ joint framework: https://www.eib.org/en/
press/all/2018-320-multilateral-development-banks-announce-joint-framework-for-aligning-their-activities-with-the-goals-of-the-paris-
agreement. Multilateral Development Banks announce joint framework for aligning their activities with the goals of the Paris Agreement
(eib.org).
3 Multinational development banks present their Paris Alignment approach (ebrd.com)
4 Progress Report: Multilateral Development Banks Working Together for Paris Alignment (eib.org)
Download this report at:
www.eib.org/mdbs-climate-finance
Download the infographic summary at:
www.eib.org/mdbs-climate-finance-infographics
vi | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
This 11
th
edition of the Joint Report on Multilateral Development Banks’
Climate Finance is an overview of climate finance committed in 2021 by
the African Development Bank (AfDB), the Asian Development Bank (ADB),
the Asian Infrastructure Investment Bank (AIIB), 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). This year’s
report also summarises information on climate finance tracking from the
New Development Bank (NDB) and the Council of Europe Development
Bank (CEB), presented separately from the joint figures.
5
NDB and CEB
climate finance commitments are not yet included in the total MDB climate
finance reported in this year’s edition.
As in previous years, the data and statistics presented in this year’s report result from the
uniform application of the methodologies developed jointly by the multilateral development
banks for their annual commitments. In this report, the term “MDB climate finance” refers to the
financial resources (from own accounts and MDB-managed external resources) committed by the
multilateral development banks to their operations, and components thereof, directed to activities
that mitigate climate change and/or support adaptation to climate change. The term “climate co-
finance” refers to the volume of financial resources invested by other public and private external
parties alongside the multilateral development banks for climate change mitigation and adaptation
activities. The banks have reported jointly on climate finance since the first edition in 2012, which
reported figures for 2011, and have added joint reporting on climate co-finance since the 2015
edition. Starting with the 2019 report, for the purpose of greater transparency and consistency,
the multilateral development banks agreed to start reporting on all economies where these banks
operate, while maintaining the report’s focus on low-and middle-income economies. This change
allowed for a clear breakdown by country income level.
The MDB climate finance commitments are presented in two main groups: 1) low-income and
middle-income economies, a grouping that includes low, lower-middle and upper-middle income
economies; and 2) high-income economies. These data sets are presented in two separate
chapters in this year’s report. The multilateral development banks endeavoured to attribute
climate finance in the category of global, multi-regional and regional projects to specific income
groups. The economies are categorised by income grouping in accordance with the World Bank’s
classification dated June 2021 (see Table B.1). More detailed analysis, and data that cannot easily
be split by income level such as climate finance for SIDS, are provided in an Annex A and Annex B.
LOW- AND MIDDLE-INCOME ECONOMIES
In 2021, $50.666 billion was for low-income and middle-income economies. $33.055 billion, or
65%, of this total was for climate change mitigation finance and $17.611 billion or 35% was for
climate change adaptation finance.
In 2021, the multilateral development banks reported $41.123 billion of their climate finance for
public recipients and $10.456 billion for private recipients in low-and middle-income economies.
The report also shows that MDB climate finance investments in low-and middle-income economies
are supported by a total of $43.603 billion in climate co-finance, with 66% in mitigation activities
and 34% in adaptation activities. 70% of climate co-finance in low- and middle-income economies
came from public sources and 30% from private sources.
5 See pages 10 and 11 for data on NDB and CEB climate finance commitments.
EXECUTIVE SUMMARY
Executive summary |
vii
HIGH-INCOME ECONOMIES
In 2021, $31.051 billion was for high-income economies. $29.475 billion, or 95%, of this total was
for climate change mitigation finance and $1.576 billion, or 5%, was for climate change adaptation
finance.
In 2021, the multilateral development banks reported $19.185 billion of climate finance for public
recipients and $11.866 billion for private recipients in high-income economies.
The report also shows that MDB climate finance investments in high-income economies are
supported by a total of $56.701 billion of climate co-finance, with 99% in mitigation activities and
1% for adaptation activities. 50% of climate co-finance in high-income economies came from public
sources and 50% from private sources.
CLIMATE FINANCE DETAIL
Figure 1a presents MDB climate finance commitments reported for 2019-2021 for low- and
middle-income economies where the multilateral development banks operate, while Figure 1b
shows MDB climate finance commitments reported for the same period for high-income economies
where the banks operate.
$ billion
2019 2020 2021
AfDB
ADB
ADB* AIIB EBRD EIB IDBG IsDB WBG
0
20
40
60
Figure 1a. MDBs’ climate finance commitments in low- and middle-income economies, 2019-21 (in $ billion)
18.4
4.4
3.6
3.9
7.1
3.6
41.5
0.5
21.3
3.2
2.5
5.3
2.3
38.0
0.3
28.0
4.8
3.4
4.8
2.7
(3.9
2.4
50.7
0.7
0.9)
2.1
1.1
4.8
viii | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
$ billion
2019 2020 2021
EBRD EIB IDBG WBG
0
20
40
Figure 1b. MDB climate finance commitments in high-income economies, 2019-21 (in $ billion)
18.1
20.1
0.5
1.1
0.4
24.6
28.0
28.1
31.1
0.9
1.6
0.8
0.7
1.6
0.5
20202019 2021
Notes for Figures 1a. and 1b:
1. Starting in 2021, the reporting of ADB’s climate finance will be based on commitments or signatures and not on approvals. This
is in accordance with the decision made in 2017 to measure and report ADB’s corporate performance based on commitments
through 2030.
(*) For ADB, external resources under management (ERUM) includes ADB-administered financial resources from financing
partners, including AIIB. ADB administers financing from AIIB for several projects, some of which have components that contribute
to climate finance. For 2021, ADB reports climate adaptation finance of $20 million and climate mitigation finance of $893 million
from ADB-administered financing from AIIB. To avoid double counting, these amounts are excluded from the total MDB amounts
for 2021 as AIIB reports climate finance for the same projects as a share of their financing under own resources.
2. IDBG’s figures have included all climate finance for public and private borrowers or beneficiaries in all 26 IDBG borrowing member
countries, via its three operational windows — IDB, IDB Invest and IDB Lab — on the basis of approval by the respective boards of
executive directors. From 2020 onward, for IDB Invest only, the figures refer to total commitments of long-term finance, in an effort
to more accurately reflect actual investments as well as the mobilisation of private sector players. In 2021, IDBG climate finance
consisted of: $4.5 billion through IDB; $1.1 billion through IDB Invest; and $23 million through IDB Lab.
3. The IsDB reported climate finance commitment excludes operations of IsDB Group members including the Islamic Corporation for
the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation
for Insurance of Investment and Export Credit (ICIEC).
4. EIB 2019-21 climate finance commitments include some EU economies in addition to those previously included by the EIB, EBRD
and WBG. Please see Annex B for details of geographical coverage in past editions of the joint report.
5. WBG climate finance resources (including own-account and managed external resources) for IFC, MIGA and the World Bank were
$4.097 billion (including $76 million of managed external resources), $1.348 billion and $23.035 billion (including $1.829 billion
of managed external resources), respectively, for the fiscal year 2021, which covers the period from 1 July 2020 to 30 June 2021.
IFC’s total commitments of own-account long-term finance in the fiscal year 2021 were $12.474 billion and IFC reached a level of
32% on long-term finance own-account climate commitments. For MIGA, total commitments on its own account in the fiscal year
2021 were $5.2 billion and climate finance reached 26%. WB total commitments on its own account were $66.55 billion and its
share of climate-related financing reached 32%.
6. The EBRD and EIB climate finance figures in this chart are based on the annual average European Central Bank rate. For 2021 the
exchange rate used is €1 = $1.1827.
7. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
Executive summary |
ix
The multilateral development banks apply two distinct methodologies — with fundamentally
different approaches — to tracking climate change adaptation finance (or “adaptation finance”)
and to climate change mitigation finance (or “mitigation finance”). Both methodologies, however,
track and report climate finance in a granular manner. In other words, the climate finance reported
covers only those components and/or sub-components or elements or proportions of projects that
directly contribute to or promote adaptation and/or mitigation.
The multilateral development banks estimate adaptation finance using the joint MDB methodology
for tracking climate change adaptation finance, which involves a three-step approach. This
methodology is based on a context- and location-specific, granular and conservative approach and
captures the amounts associated with activities directly linked to vulnerability to address climate
change. The banks try as far as possible to differentiate between their usual development finance
and finance provided with an explicit intent to reduce vulnerability to climate change. In July 2015,
the multilateral development banks and the IDFC agreed an initial set of Common Principles for
Climate Adaptation Finance Tracking.
6
The organisations continue to harmonise their approaches
to tracking adaptation finance. As mentioned above, the multilateral development banks have
commenced an update of the tracking methodology for climate adaptation to be completed during
2022. Climate change adaptation finance in 2021 totalled $19.187 billion, of which 92% was
directed at low- and middle-income economies.
The multilateral development banks’ methodologies for tracking climate mitigation finance align
with the Common Principles for Climate Change Mitigation Finance Tracking
7
that the MDBs and
the IDFC jointly agreed and first published in March 2015. At COP24 in 2018 they announced a
plan to work jointly to review and strengthen the Common Principles for Climate Mitigation Finance
Tracking. Mitigation finance is estimated in accordance with the joint MDB methodology for
tracking climate mitigation finance, which is based on a list of activities in sectors and sub-sectors
that reduce greenhouse gas emissions and are compatible with low-emission development. In
2020, the banks finalised their review of the methodology for tracking mitigation climate finance,
and commenced tracking using the new methodology on 1 January 2021 for the AfDB, ADB, AIIB,
EBRD, EIB, IDBG, IsDB and NDB and on 1 July 2021 for the WBG, to coincide with each institution’s
new fiscal year. The new version of the methodology includes a more granular breakdown of types
of eligible activity, clear criteria that must be met and additional guidance to help interpretation.
Climate change mitigation finance in 2021 totalled $62.530 billion, of which 53% was directed at
low- and middle-income economies.
In addition to reporting on mitigation and adaptation finance, some multilateral development banks
report on volumes of climate finance that have dual, simultaneous benefits: reducing greenhouse
gas emissions and promoting adaptation to climate change. In 2021, the AIIB, EBRD and IDBG
reported a total of $762 million for dual-benefit projects. See Annex C.4 for further climate finance
statistics and examples of such projects. Given the relatively small volumes of dual-benefit
climate finance and in order to simplify data presentation, the tables and graphs throughout this
report present data by mitigation or adaptation finance, as indicated by the reporting multilateral
development banks.
Climate co-finance including private finance mobilisation:
Climate co-finance committed during 2021 in low-and middle-income economies was $43.603 billion,
with 66% going to mitigation investments and 34% to adaptation investments. 70% of this climate co-
finance was from public sources and 30% was mobilised from private sources.
6 The Common Principles for Climate Change Adaptation Finance Tracking are set out in Annex C.2: https://www.afdb.org/fileadmin/uploads/
afdb/Documents/Generic-Documents/Common_Principles_for_Climate_Change_Adaptation_Finance_Tracking_-_Version_1__02_
July__2015.pdf
7 The Common Principles for Climate Mitigation Finance Tracking are set out in Annex C.3: https://www.eib.org/attachments/documents/
mdb_idfc_mitigation_common_principles_en.pdf
x | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
For high-income economies the climate co-finance committed during 2021 was $56.071 billion,
with 99% going to mitigation investments and 1% to adaptation investments. 50% of this climate
co-finance was from public sources and 50% was mobilised from private sources.
Annex A provides additional information on MDB total climate finance aggregated across all their
countries of operation.
The New Development Bank and Council of Europe Development Bank´s climate finance
information:
The New Development Bank (NDB) applied the joint MDB methodologies for tracking climate
mitigation and adaptation finance to projects funded from its own account in 2021, including
sovereign and non-sovereign operations.
In 2021, NDB committed a total of $509 million in climate finance, all of which was dedicated
to climate mitigation activities in middle-income countries. Climate finance accounted for about
26% of NDB’s total approved financing excluding the COVID-19 emergency programme loans. On
a separate note, NDB approved about $3.1 billion in emergency assistance in 2021 to facilitate
countries’ efforts to respond to and recover from the pandemic.
NDB aims to report on the details of its climate finance (for example, by region, sector and instrument)
in future editions of the joint report, as it extends the application of the joint MDB methodologies.
The Council of Europe Development Bank (CEB) is in the process of extending and adapting its
internal processes in order to fully implement the joint MDB methodology for climate finance
tracking, including the required level of granularity. In this report, the 2021 numbers for climate
mitigation and adaptation finance disclosed by CEB are based on the MDB methodology but may
be incomplete and therefore should be considered as conservative. Furthermore, only projects
financed from CEB’s own account are being tracked, including sovereign-backed financing and
non-sovereign-backed financing. No data for climate co-finance are available.
The CEB committed a total of $621 million in climate finance, representing 13% of the total volume
of financing approved in 2021 (15% excluding the emergency COVID-19 loans approved in 2021).
Mitigation finance accounted for 89% of total climate finance, representing $552.3 million, while
$68.6 million (11%) was allocated for climate change adaptation.
The CEB intends to report on the details of its climate finance commitments (for example, by region,
sector and instrument) in future editions of the joint report, as it extends its application of the joint
MDB methodologies after their review in 2021.
Executive summary |
xi
OVERVIEW OF MDB METHODOLOGIES FOR
TRACKING CLIMATE FINANCE
1
The tracking of MDB climate finance is based on the harmonised principles and jointly agreed
methodologies for tracking climate adaptation and mitigation finance detailed in Annex C.2 and
Annex C.3, respectively, of this report. In this publication, the term “MDB climate finance” refers
to the amounts committed by the multilateral development banks to financing climate change
mitigation and adaptation activities in the projects they undertake. See Annex B for details of the
2021 report’s geographic coverage, and that of past editions.
MDB climate finance includes commitments from the multilateral development banks’ own
accounts, and from external resources channelled through and managed by the banks. Climate
co-finance includes the amount of financial resources contributed by external resources alongside
MDB climate finance. These may include entities from both the private (commercial) and public
(non-commercial) sectors.
1.1 FINANCE FOR ADAPTATION TO CLIMATE CHANGE
Climate change adaptation aims to reduce the risks or vulnerabilities posed by climate change and
to increase climate resilience. Identification of climate change adaptation finance is the result of
a three-step process and thus, for a project to be counted either fully or partially towards MDB
adaptation finance, it must:
a. Set out the project’s context of vulnerability to climate change.
b. Make an explicit statement of intent to address this vulnerability as part of the project.
c. Articulate a clear and direct link between the vulnerability and the specific project activities.
The MDB methodology for tracking climate change adaptation finance follows a context- and
location-specific, conservative and granular approach. It tracks MDB financing only for those
components and/or sub-components or elements or proportions of projects that directly contribute
to or promote adaptation. It is important to note the following:
a. The adaptation finance reported might not capture certain activities that might contribute
significantly to resilience but cannot always be tracked in quantitative terms (for example,
operational procedures that support adaptation to climate change) or might not be associated
with costs (such as siting assets outside flood-prone areas).
b. Climate adaptation finance, as defined by the methodology, is not intended to capture the value
of an entire project or investment that may increase resilience as a result of specific adaptation
activities that take place as part of the project.
The joint methodology for tracking climate adaptation finance is presented in Annex C.2 of this
report.
1.2 FINANCE FOR THE MITIGATION OF CLIMATE CHANGE
Climate change mitigation reduces, avoids, limits or sequesters greenhouse gas emissions to
mitigate climate change. However, not all activities that reduce greenhouse gas emissions are
eligible to be counted towards MDB mitigation finance, which is calculated based on a list of
activities that are compatible with low-emission pathways.
Within the MDB/IDFC Common Principles for Climate Mitigation Finance Tracking
8
methodology,
an activity can be classified as climate change mitigation where the activity, by avoiding or
reducing greenhouse gas emissions or increasing their sequestration, contributes substantially
to the stabilisation of greenhouse gas concentrations in the atmosphere at a level that prevents
8 mdb_idfc_mitigation_common_principles_en.pdf (eib.org)
Overview of MDB methodologies fortracking climate finance |
1
dangerous anthropogenic interference with the climate system consistent with the long-term
temperature goal of the Paris Agreement.
The common principles recognise that a substantial contribution to climate change mitigation can
involve the following three categories of climate change mitigation activities:
1. Negative- or very-low-emission activities, which result in negative, zero or very low greenhouse gas
emissions and are fully consistent with the long-term temperature goal of the Paris Agreement, for
example carbon sequestration in land use or some forms of renewable energy.
2. Transitional activities, which are still part of greenhouse gas-emissive systems, but are important
for and contribute to the transition towards a climate-neutral economy, such as energy efficiency
improvement in manufacturing that directly or indirectly uses fossil fuels.
3. Enabling activities, which are instrumental in enabling other activities to make a substantial
contribution to climate change mitigation, such as manufacture of very-low emission technologies.
There are fundamental differences between the tracking methodologies for climate change
adaptation activities and those for mitigation activities. For mitigation activities, a 1 tonne
reduction in CO
2
emissions has the same impact regardless of where the activities take place. It
is therefore possible to define lists of typical activities that are deemed to support the path to low-
carbon development. However, adaptation activities are project- and location-specific, and they
respond to specific climate vulnerabilities. Therefore, unlike mitigation activities, it is not possible
to produce a stand-alone list of adaptation activities that can be used under all circumstances.
When comparing climate finance data, it is important to understand the differences and
similarities. Table 1 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
qualifying activity
The activity is typically a component or element
of a project, and in certain circumstances
an entire project, contributing to resilience
(including socioeconomic resilience) or
adaptation to climate change.
This is typically a project (or component thereof)
that avoids, reduces or sequesters greenhouse
gas emissions, or promotes efforts to achieve
these goals.
Basis for tracking Adaptation finance tracking is incremental
(component-based); it only takes into account
those activities that specifically address
vulnerability to climate change. Eligible
components are usually parts of a larger
project, for example water-saving equipment
that is part of a larger capital expenditure
investment in an area vulnerable to increased
risk of drought.
Mitigation finance tracking is either project- or
component-based.
Project-based: If the whole project is considered
to be a mitigation activity, for example a typical
renewable energy project or a project dedicated
to improving the energy efficiency of an existing
facility, then 100% of the project investment
is considered to be mitigation finance, where
applicable criteria are met.
Component-based: Within a project, if only
a component of that project is a mitigation
activity, such as installation of energy efficient
equipment that is part of a larger capital
expenditure investment, then the respective
fraction of the project is considered to be
mitigation finance.
2 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
CLIMATE CHANGE ACTIVITY
Item Adaptation Mitigation
Granular approach
to finance tracking
The adaptation finance methodology intends
to capture only the value of those activities
within the project that are aimed at addressing
specific climate vulnerabilities. It is not intended
to capture the value of the entire project that is
made more climate-resilient as a consequence
of specific adaptation activities within the
project.
A granular approach is used. Climate finance
methodology intends to capture only the value of
the project or its components that substantially
contribute to climate change mitigation,
demonstrated using applicable metrics (such
as emission or energy intensity) subject to the
requirements specified in the eligible list of
activities.
Scale of impact Local, regional, national or global. Global.
Indicator(s) to
quantify and
compare project
outcomes
Multiple (project- and context-specific) indicators
are needed; the intended outcomes depend on
the nature of the project.
Ultimately, the impact of all mitigation projects
can be assessed on the basis of their direct
greenhouse gas emissions reductions (such as
implementation of energy efficient equipment
in a building) or indirect emissions reductions
(such as manufacture of electric vehicles
that enables reduction of emissions through
substitution of internal combustion engine
vehicles inthe market).
Qualification for
climate finance
Qualification is based on a three-step assessment
process, taking into account the climate change
vulnerability context and the specific project
intent to reduce climate vulnerabilities.
Qualification is based on a list of eligible
activities with associated screening criteria that
enable assessment for qualification for climate
mitigation finance. Overarching criteria also
apply.See Annex C.3 for further details.
Climate finance
tracking
Following the three-step assessment process, a
share of the project components that are clearly
and directly linked to the climate vulnerability
context and contribute to climate change
resilience is classified as climate change
adaptation finance.
Financing of the eligible project activities is
classified as climate change mitigation finance
where associated criteria are met.
Annex C.2 presents a full description of the adaptation methodology, while Annex C.3 contains an
excerpt of the mitigation methodology (with the full description being available within the MDB/
IDFC Common Principles for Climate Change Mitigation Tracking). Both annexes will contain
examples of the methodologies’ application to MDB projects in an array of sectors.
1.3 METHODOLOGY FOR CLIMATE CO-FINANCE
In 2015, the multilateral development banks began reporting on climate co-finance (CCF) flows in
line with the harmonised definitions and indicators that had been established to estimate them.
Tracking of climate co-finance aims to estimate the volume of financial resources invested by
public and private external parties alongside multilateral development banks for climate mitigation
and adaptation activities.
This approach presents sources of climate co-finance in the following categories: (i) other
multilateral development banks; (ii) IDFC member institutions, including bilateral and multilateral
members; (iii) other international public entities such as donor governments; (iv) contributions from
other domestic public entities such as recipient-country governments (for example, financing by
local counterparts); and (v) all private entities (defined as those with at least 50% of their shares
held privately), split into private direct mobilisation and private indirect mobilisation. This level of
granularity enables multilateral development banks to present an increasingly nuanced picture of
co-finance flows used for climate change interventions.
Overview of MDB methodologies fortracking climate finance |
3
In April 2017, the multilateral development banks published a reference guide (From Billions
to Trillions: Transforming Development Finance)
9
to explain how they calculate and jointly report
private investment mobilisation beyond climate finance. The purpose of the methodology is to
recognise and measure the private capital mobilised in MDB project activities. The guide outlines
the banks’ joint commitment to mobilising increased investment from the private sector and
institutional investors. Total financing of climate activity includes climate co-finance (the amount
of financial resources that external entities contribute). The multilateral development banks are
implementing the definitions and recommendations of the MDB Taskforce on Private Investment
Mobilisation for tracking the private share of climate co-finance. This methodology focuses on
assessing the private finance mobilised by an MDB, on a project-by-project basis, such as private
direct mobilisation and private indirect mobilisation.
10
The 2021 Joint Report on MDBs’ Climate
Finance follows the agreed terminology
11
and the following chapters show two different elements
of private finance mobilisation: private direct mobilisation and private indirect mobilisation. Added
together, these two forms of mobilisation represent the private share of climate co-finance.
Private direct
mobilisation
Private indirect
mobilisation
Public co-financeExternal
resources
managed
by MDB
MDB own account
Private co-financing
MDB climate finance
Figure 2. Total activity financing, by type of finance
9 http://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva
teInvestmentMobilizationMethodologyReferenceGuide.pdf
10 http://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva
teInvestmentMobilizationMethodologyReferenceGuide.pdf
11 See Annex C.1 for definitions of “private direct mobilisation”, “private indirect mobilisation” and “public direct mobilisation”.
4 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
MDB CLIMATE FINANCE IN LOW- AND
MIDDLE-INCOME ECONOMIES, 2021
2
2.1 MDB CLIMATE FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES
In 2021, the multilateral development banks committed $50.666 billion to low-income and middle-
income economies, thus surpassing the annual expectations of $50 billion set in the joint MDB
High Level Statement of 2019. Of the $50.666 billion of climate finance committed to low-income
and middle-income economies, $47.24 billion was from the MDBs’ own account and $3.426 billion
from external resources that were channelled through the banks. Mitigation finance committed
to low- and middle-income economies totalled $33.055 billion, or 65%, while adaptation finance
totalled $17.611 billion, or 35%.
Sources of MDB climate finance are split between the multilateral development banks’ own
accounts and the external resources channelled through and managed by them. External
resources include trust-funded operations, such as those funded by bilateral agencies and
dedicated climate finance funds such as the Climate Investment Funds (CIF), Green Climate Fund
(GCF) and climate-related funds under the Global Environment Facility (GEF), EU blending facilities
and others. As bilateral reporting may already cover some external resources, those managed by
the multilateral development banks are presented separately from their own accounts.
Table 2. MDB climate finance in low- and middle-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
Own account 2 020 3 552 2 74 6 4 500 3 257 4 372 684 26 110 47 240
MDB-managed
external
resources
409 1 212* - 276 115 448 - 1 879 3 426*
MDB climate
finance
2 429 4 764* 2 74 6 4 777 3 371 4 819 684 27 989 50 666
Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the multilateral development banks’ own accounts and the MDB-
managed external resources.
3. “Total MDB operations” refers to the sum of the multilateral development banks’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development
of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance of
Investment and Export Credit (ICIEC).
5. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing
for three projects, amounting to $913 million, reported under ERUM is excluded from the MDB total amounts to avoid double
counting. Subtracting this amount from ADB’s total climate finance for low- and middle-income economies yields $3.851 billion.
(**) AIIB financing for ADB projects amounting to $1.421 billion was subtracted from total MDB operations to avoid double counting.
Table 3. MDB climate finance by scope in low- and middle-income economies, 2021 (in $ million)
MDB Adaptation finance Mitigation finance MDB climate finance
AfDB 1 549 880 2 429
ADB 1 326* 3 438* 4 764*
AIIB 651 2 096 2 74 6
EBRD 336 4 441 4 777
EIB 381 2 990 3 371
IDBG 1 688 3 131 4 819
IsDB 252 432 684
WBG 11 448 16 541 27 989
Total
17 611
33 055
50 666
MDB climate finance in low- and middle-income economies, 2021 |
5
Notes:
1. In certain cases, multilateral development banks finance activities that have simultaneous benefits for mitigation and adaptation.
The 2021 figure of $762 million of climate finance with dual benefits is presented under the sub-heading of mitigation or adaptation
finance (based on the most relevant elements of the project) to simplify reporting (See Annex C.4). The AIIB reported $68 million, the
EBRD reported $27 million and the IDBG reported $668 million as dual-benefit projects. Note that the IDBG splits dual-benefit finance
equally between adaptation and mitigation categories, while the EBRD allocates all dual-benefit activities to adaptation finance. See
Annex C.4 for further details.
2. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance ($20 million)
and climate mitigation ($893 million) finance from AIIB financing for three projects reported under ERUM is excluded from the MDB total
amounts to avoid double counting. Subtracting these amounts from ADB’s climate adaptation finance and climate mitigation finance
for low- and middle-income economies yields $1.306 billion and $2.545 billion, respectively.
2.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER
IN LOW- AND MIDDLE-INCOME ECONOMIES
The multilateral development banks report on the nature of first recipients or borrowers
12
of their
climate finance (those to which finance will flow directly from the MDBs), differentiating between
public and private recipients or borrowers. Total commitment varies significantly between the
banks’ own accounts and MDB-managed external resources, as Table 4 illustrates. Table 5 shows
the split by type of recipient or borrower for the banks’ own accounts and for MDB-managed
external resources.
Table 4. MDB climate finance by source of funds and by type of recipient or borrower in low- and middle-income
economies, 2021 (in $ million)
Type of recipient or borrower MDB own account MDB-managed external resources
Public recipient/borrower 37 561 2 649*
Private recipient/borrower 9 679 777
Total 47 240 3 426
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects reported under ERUM, amounting to $913 million, is excluded from the MDB total amounts for public recipient/borrower to
avoid double counting.
Table 5. MDB climate finance by type of recipient or borrower in low- and middle-income economies, 2021
(in $ million)
MDB
Private Public
AfDB 510 1 919
ADB 459* 4 305*
AIIB 374 2 373
EBRD 2 807 1 970
EIB 582 2 789
IDBG 833 3 986
IsDB - 684
WBG 4 891 23 098
Total 10 456 40 210
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for the
three projects that ADB reported under ERUM, amounting to $913 million, is excluded from the MDB total amount for public recipient/
borrower to avoid double counting. Subtracting this amount from ADB’s climate finance for public recipient/borrower in low- and middle-
income economies yields $3.392 billion.
12 See Annex C.1 for the definitions of public and private recipients or borrowers.
6 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
2.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN LOW- AND MIDDLE-
INCOME ECONOMIES
For the eighth consecutive year, the multilateral development banks reported climate finance by
the types of financial instrument (see Annex C.5 for definitions). They reported that 71% of climate
finance for low- and middle-income economies was committed through investment loans, followed
by grants and policy-based financing. Illustrative examples of various types of instrument are
presented in tables in Annex C.5.
Table 6. MDB climate finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
Instrument type Climate finance
Equity 830
Grant 4 259
Guarantee 1 651
Investment loan 36 039*
Line of credit 171
Policy-based financing 4 000
Results-based financing 2 114
Other instruments 1 602
Total 50 666
Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the category
of investment loans.
3. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources under management, climate finance
from AIIB financing for three projects reported under ERUM, amounting to $913 million, is excluded from the investment loan
amount to avoid double counting.
Equity $830 million
Grant $4 259 million
Guarantee $1 651 million
Investment loan $36 039 million
Line of credit $171 million
Policy-based financing $4 000 million
Results-based financing $2 114 million
Other instruments $1 602 million
TOTAL CLIMATE FINANCE BY INSTRUMENT
$50 666 million
Figure 3. MDB climate finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
0.3%
2%
3%
3%
71%
9%
8%
4%
TOTAL
$50 666 million
MDB climate finance in low- and middle-income economies, 2021 |
7
2.1.3 MDB CLIMATE FINANCE BY REGION IN LOW- AND MIDDLE-INCOME
ECONOMIES
Multilateral development banks’ climate finance commitments are grouped by region below.
13
Table 7. MDB climate finance by region in low- and middle-income economies, 2021 (in $ million)
Region
Climate finance
Central Asia 1 929*
East Asia and the Pacific 5 960
Europe: EU 1 170
Europe: Non-EU 5 272
Latin America and the Caribbean 9 820
Middle East and North Africa 4 071
South Asia 8 159*
Sub-Saharan Africa 12 760
Multi-regional 1 524
Total 50 666
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects reported under ERUM, amounting to $108 million and $805 million, is excluded from the Central Asia and South Asia total
amounts, respectively, to avoid double counting.
Central Asia $1 929 million
East Asia and the Pacific $5 960 million
Europe: EU $1 170 million
Europe: Non-EU $5 272 million
Latin America and the Caribbean $9 820 million
Middle East and North Africa $4 071 million
South Asia $8 159 million
Sub-Saharan Africa $12 760 million
Multi-regional $1 524 million
TOTAL CLIMATE FINANCE BY REGION
$50 666 million
Figure 4. MDB climate finance by region in low- and middle-income economies, 2021 (in $ million)
2%
3%
4%
10%
16%
20%
8%
12%
25%
TOTAL
$50 666 million
2.2 MDB ADAPTATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
In 2021, a total of $19.187 billion was committed to climate change adaptation finance, with
$17.611 billion, or 92%, committed to low- and middle- income economies, thus surpassing the
expected collective delivery of increasing adaptation finance to $18 billion, set in the joint MDB
High Level Statement of 2019. The data reported corresponds to the incremental costs of project
components, sub-components, or elements, or proportions of projects, which are considered to
be inputs to an adaptation process and are intended to reduce vulnerability to climate change and
build resilience to it.
13 See Table B.1 for regional groupings.
8 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 8 presents the 2021 adaptation figures by bank for low- and middle-income economies,
with a breakdown of climate adaptation finance committed by the multilateral development banks
from their own accounts and from MDB-managed external resources in low- and middle-income
economies.
Table 8. MDB adaptation finance by MDB according to source of funds in low- and middle-income economies,
2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
MDB own account 1 325 1 278 651 302 328 1 655 252 10 626 16 417
MDB-managed
external resources
224 48* - 34 54 33 - 822 1 194*
Total 1 549 1 326* 651 336 381 1 688 252 11 448 17 611*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects, amounting to $20 million, reported under ERUM is excluded from the MDB total adaptation amount to avoid
double counting.
Table 9 shows a breakdown by type of recipient or borrower.
Table 9. MDB adaptation finance by MDB and by type of recipient or borrower in low- and middle-income economies,
2021 (in $ million)
MDB Private Public
AfDB 275 1 274
ADB 70 1 256*
AIIB 1 650
EBRD 54 282
EIB 45 336
IDBG 56 1 632
IsDB - 252
WBG 37 11 411
Total
538 17 073*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects, amounting to $20 million, reported under ERUM is excluded from the MDB total adaptation amount to
avoid double counting. Subtracting this amount from ADB’s climate adaptation finance for public recipient borrower for low- and middle-
income economies yields $1.237 billion.
Table 10 breaks down MDB adaptation finance by the type of instrument. The multilateral
development banks reported that 63% of adaptation finance for low-and middle-income economies
was committed through investment loans, followed by grants and policy-based financing.
Table 10. MDB adaptation finance by MDB and by type of instrument in low- and middle-income economies, 2021
(in $ million)
Instrument type Adaptation finance
Equity 22
Grant 2 631
Guarantee 145
Investment loan 11 055*
Line of credit 40
Policy-based financing 1 490
Results-based financing 1 179
Other instruments 1 050
Total 17 611*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $20 million, is excluded from the investment loan amount to avoid
double counting.
MDB climate finance in low- and middle-income economies, 2021 |
9
Table 11 shows total adaptation finance by region. The largest proportions of adaptation finance in
low- and middle-income economies were in the following regions: Sub-Saharan Africa, South Asia
and Latin America and the Caribbean.
Table 11. MDB adaptation finance by region in low- and middle-income economies, 2021 (in $ million)
Region Adaptation finance
Central Asia 485*
East Asia and the Pacific 2 308
Europe: EU 98
Europe: Non-EU 542
Latin America and the Caribbean 2 984
Middle East and North Africa 1 100
South Asia 3 034*
Sub-Saharan Africa 6 847
Multi-regional 214
Total 17 611
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South
Asia climate adaptation amounts, respectively, to avoid double counting.
Central Asia $485 million
East Asia and the Pacific $2 308 million
Europe: EU $98 million
Europe: Non-EU $542 million
Latin America and the Caribbean $2 984 million
Middle East and North Africa $1 100 million
South Asia $3 034 million
Sub-Saharan Africa $6 847 million
Multi-regional $214 million
TOTAL ADAPTATION FINANCE BY REGION
$17 611 million
Figure 5. MDB adaptation finance by region in low- and middle-income economies, 2021 (in $ million)
1%
1%
3%
17%
3%
6%
17%
13%
39%
TOTAL
$17 611 million
Table 12 reports MDB adaptation finance by sector, with 26% in energy, transport and other built
environment and infrastructure, followed by cross-cutting operations with 17%, and 15% in water
and wastewater systems.
Table 12. MDB adaptation finance by sector in low- and middle-income economies, 2021 (in $ million)
Sector group Adaptation finance
Coastal and riverine infrastructure 532
Crop and food production 1 699
Cross-cutting sectors 3 052
Energy, transport and other built environment and infrastructure 4 547*
Financial services 1 832
Industry, manufacturing and trade 32
Information and communications technology 176
Institutional capacity support or technical assistance 2 400*
10 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Sector group Adaptation finance
Other agricultural and ecological resources 675*
Water and wastewater systems 2 666*
Total 17 611
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $20 million, is excluded from relevant sectors to avoid double counting.
Coastal and riverine infrastructure $532 million
Crop and food production $1 699 million
Cross-cutting sectors $3 052 million
Energy, transport and other built environment
and infrastructure $4 547 million
Financial services $1 832 million
Industry, manufacturing and trade $32 million
Information and communications technology $176 million
Institutional capacity support or
technical assistance $2 400 million
Other agricultural and ecological resources $675 million
Water and wastewater systems $2 666 million
TOTAL ADAPTATION FINANCE BY SECTOR
$17 611 million
Figure 6. MDB adaptation finance by sector in low- and middle-income economies, 2021 (in $ million)
0%
1%
3%
4%
17%
26%
15%
10%
10%
14%
TOTAL
$17 611 million
Adaptation finance by region, for low- and middle-income economies, with a further breakdown by
sector, is presented in Table 13.
Table 13. MDB adaptation finance by sector and region in low- and middle-income economies, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Coastal
and riverine
infrastructure
- 33 - - 79 - 164 179 76 532
Crop and food
production
42 51 - 38 60 257 270 975 7 1 699
Cross-cutting
sectors
139 568 3 36 511 247 477 1 065 5 3 052
Energy,
transport and
other built
environment and
infrastructure
210* 611 74 332 399 94 695* 2 132 1 4 547
Financial
services
1 270 - 19 193 229 399 691 32 1 832
Industry,
manufacturing
and trade
0 - - 2 - 13 - 13 4 32
Information and
communications
technology
7 - - 4 14 8 18 126 - 176
Institutional
capacity support
or technical
assistance
12 299 - 7 1 279 85 373* 314 32 2 400
MDB climate finance in low- and middle-income economies, 2021 |
11
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Other
agricultural
and ecological
resources
34 37 - 40 226 6 53* 227 52 675
Water and
wastewater
systems
41 439 20 64 223 162 586* 1 126 4 2 666
Total 485 2 308 98 542 2 984 1 100 3 034 6 847 214 17 611
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South
Asia climate adaptation amounts, respectively, to avoid double counting.
2.3 MDB MITIGATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
In 2021, the multilateral development banks reported a total of $62.530 billion in financial
commitments for the mitigation of climate change, with $33.055 billion, or 53%, committed to low-
income and middle-income economies. Data reported corresponds to the financing of mitigation
projects or of the components, sub-components, or elements, or proportions of projects that
provide mitigation benefits (rather than reporting the entire project cost).
Table 14 provides a breakdown of climate mitigation finance committed by the multilateral
development banks during 2021 from MDB own-account and external resources in low- and
middle-income economies.
Table 14. MDB mitigation finance by MDB and source of funds in low- and middle-income economies, 2021
(in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
MDB own
account
695 2 274 2 096 4 198 2 929 2 716 432 15 483 30 823
MDB-managed
external
resources
185 1 164* - 243 61 415 - 1 057 2 232*
Total 880 3 438* 2 096 4 441 2 990 3 131 432 16 541 33 055*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects, amounting to $893 million, reported under ERUM is excluded from the MDB total mitigation amount to avoid
double counting.
Table 15 shows a breakdown by type of recipient or borrower.
Table 15. MDB mitigation finance economies by MDB and by type of recipient or borrower in low- and middle-
income, 2021 (in $ million)
MDB Private Public
AfDB 235 645
ADB 389 3 049*
AIIB 373 1 723
EBRD 2 753 1 687
EIB 537 2 453
12 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
MDB Private Public
IDBG 777 2 354
IsDB - 432
WBG 4 854 11 687
Total
9 918 23 137*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects, amounting to $893 million, reported under ERUM is excluded from the MDB total mitigation amount to avoid double
counting. Subtracting this amount from ADB’s climate adaptation finance for public recipient borrowers for low- and middle-income
economies yields $2.155 billion.
Table 16 breaks down MDB mitigation finance by type of instrument. The multilateral development
banks reported that 76% of total mitigation finance for low -and middle- income economies was
committed through investment loans, followed by policy-based financing.
Table 16. MDB mitigation finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
Instrument type Mitigation finance
Equity 807
Grant 1 628
Guarantee 1 506
Investment loan 24 985*
Line of credit 131
Policy-based financing 2 510
Results-based financing 936
Other instruments 552
Total
33 055*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects reported under ERUM, amounting to $893 million, is excluded from the investment loan amount to avoid
double counting.
Equity $807 million
Grant $1 628 million
Guarantee $1 506 million
Investment loan $24 985 million
Line of credit $131 million
Policy-based financing $2 510 million
Results-based financing $936 million
Other instruments $552 million
TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT
$33 055 million
Figure 7. MDB mitigation finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
3%
5%
76%
5%
8%
2%
2%
0.40%
TOTAL
$33 055 million
MDB climate finance in low- and middle-income economies, 2021 |
13
Table 17 shows total mitigation finance by region. The largest proportions of mitigation finance in
low- and middle-income economies were in the following regions: Latin America and the Caribbean,
Sub-Saharan Africa, and South Asia.
Table 17. MDB mitigation finance by region in low- and middle-income economies, 2021 (in $ million)
Region Mitigation finance
Central Asia 1 444*
East Asia and the Pacific 3 652
Europe: EU 1 073
Europe: Non-EU 4 730
Latin America and the Caribbean 6 837
Middle East and North Africa 2 970
South Asia 5 125*
Sub-Saharan Africa 5 914
Multi-regional 1 310
Total
33 055*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.
Central Asia $1 444 million
East Asia and the Pacific $3 652 million
Europe: EU $1 073 million
Europe: Non-EU $4 730 million
Latin America and the Caribbean $6 837 million
Middle East and North Africa $2 970 million
South Asia $5 125 million
Sub-Saharan Africa $5 914 million
Multi-regional $1 310 million
TOTAL MITIGATION FINANCE BY REGION
$33 055 million
Figure 8. MDB mitigation finance by region in low- and middle-income economies, 2021 (in $ million)
4%
4%
14%
3%
16%
21%
9%
11%
18%
TOTAL
$33 055 million
Table 18 reports the multilateral development banks’ mitigation finance in low- and middle-income
economies by sector with 29% in energy, followed by 21% in transport.
Table 18. MDB mitigation finance by sector in low- and middle-income economies, 2021 (in $ million)
Region Mitigation finance
Energy 9 676*
Mining and metal production for climate action 18
Manufacturing 1 649
Agriculture, forestry, land use and fisheries 2 411
Water supply and wastewater 1 278*
Solid waste management 1 447*
Transport 6 704*
Buildings, public installations and end-use energy efficiency 2 532
Information and communications technology (ICT) and digital technologies 298
14 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Research, development and innovation 30
Cross-sectoral activities 7 011
Total 33 055
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects reported under ERUM, amounting to $893 million, is excluded from relevant sectors to avoid double counting.
Energy $9 676 million
Mining and metal production for
climate action $18 million
Manufacturing $1 649 million
Agriculture, forestry, land use
and fisheries $2 411 million
Water supply and wastewater $1 278 million
Solid waste management $1 447 million
Transport $6 704 million
Buildings, public installations and
end-use energy efficiency $2 532 million
Information and communications technology
(ICT) and digital technologies $298 million
Research, development and innovation $30 million
Cross-sectoral activities $7 011 million
TOTAL MITIGATION FINANCE BY SECTOR
$33 055 million
0.05%
0.09%
Figure 9. MDB mitigation finance in low- and middle-income economies by sector, 2021 (in $ million)
1%
29%
8%
7%
4%
21%
4%
5%
20%
TOTAL
$33 055 million
Mitigation finance by region, with further breakdown by sectors, is presented in Table 19.
Table 19. MDB mitigation finance by sector and by region in low- and middle-income economies, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Energy 370 1 476 347 1 677 1 044 485 1 601* 2 386 291 9 676
Mining and
metal produc-
tion for climate
action
- - 18 - - - - - - 18
Manufacturing 52 46 8 824 68 282 88 147 134 1 649
Agriculture,
forestry, land
use and
fisheries
100 405 0 86 755 58 146 704 156 2 411
Water supply
and waste-
water
115 126 - 31 482 27 401* 80 16 1 278
Solid waste
management
19 408 - 189 120 78 3 81* 112 140 1 447
Transport 398* 426 88 1 413 617 1 726 1 454* 388 192 6 704
Buildings, pub-
lic installations
and end-use
energy effi-
ciency
83 299 496 389 581 100 227 198 159 2 532
MDB climate finance in low- and middle-income economies, 2021 |
15
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Information
and communi-
cations
technology
(ICT) and
digital
technologies
- - - 6 225 - - 2 66 298
Research,
development
and innovation
3 1 - - 11 1 2 - 13 30
Cross-sectoral
activities
304 466 116 114 2 933 213 825 1 898 143 7 011
Total 1 444 3 652 1 073 4 730 6 837 2 970 5 125 5 914 1 310 33 055
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.
2.4 CLIMATE CO-FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
The multilateral development banks’ climate co-finance is based on their harmonised definitions,
which can be consulted in Section 1.3.
Table 20 shows 2021 climate co-finance flows as reported by each institution, segmented by the
source of co-financing. These 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 banks jointly finance a project, which results in some overlap between the gross co-
finance figures reported by the different organisations. Table 21 shows climate co-finance flows
by adaptation and mitigation for low- and middle-income economies. In order to avoid double
counting, the last column of Tables 21 and 22 nets out potentially double-counted co-financing
by considering only the proportion of co-financing for every project that features co-financing from
another multilateral development bank.
In the reference guide, the multilateral development banks emphasise the differences in how
various financial instruments, including guarantees, are tracked and reported. By mitigating the
political and commercial risks of private and publicly owned investments, guarantees can facilitate
access to capital for climate finance activities. This can enhance the mobilisation of resources for a
specific project or in support of specific government policies.
For consistency with the agreed MDB methodology on tracking and reporting mobilised private
capital, the tracking and reporting of guarantees as detailed in this report assumes: (i) a distinction
in tracking and reporting between commercial guarantees and non-commercial guarantees;
14
and
(ii) causality between the guarantee and the underlying investment covered (in other words, in the
absence of the guarantee, the underlying investment would be unlikely to occur). For this reason,
the gross exposure from the guarantee issuance and the underlying investment may be reported
separately under the banks’ own account and private co-finance, while the best effort is made to
minimise double counting.
14 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.
16 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 21 reflects the 2021 climate co-finance flows, including the direct and indirect mobilisation
attributed to guarantees. The guarantee exposure of each multilateral development bank has been
shown as “own account” in Tables 2, 22, 42 and 64.
Table 20. Climate co-finance flows by MDB and by thematic focus in low- and middle-income economies, 2021
(in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
climate
co-finance
Correction
for
multiple
MDB
financing
Mitigation
finance
1 935 2 785 704 8 752 6 133 2 131 5 127 8 566 36 133 28 844
Adaptation
finance
4 034 2 388 3 773 312 797 229 1 756 5 063 18 351 14 759
Total 5 969 5 173 4 477 9 063 6 929 2 360 6 883 13 629 54 484 43 603
Table 21. Climate co-finance flows by MDB and by source in low- and middle-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
climate
co-finance
Correction
for
multiple
MDB
financing
Public direct
mobilisation
- - - - 329 435 - 4 656 5 420 5 420
Public co-finance
Other MDBs 1 913 83 2 043 2 068 1 203 - 4 067 1 158 12 536 12 536
IDFC
members
561 556 73 580 905 780 83 72 3 610 2 753
Other
international
public
234 55 3 114 717 - 2 733 943 4 799 1 485
Other
domestic
public
2 474 3 523 2 358 969 2 409 205 - 85 12 022 8 407
Total private mobilisation
Private
direct
mobilisation
- 98 - 449 55 591 - 3 421 4 614 4 614
Private
indirect
mobilisation
787 859 - 4 883 1 311 349 - 3 294 11 484 8 389
Total 5 969 5 173 4 477 9 063 6 929 2 360 6 883 13 629 54 484 43 603
MDB climate finance in low- and middle-income economies, 2021 |
17
3.1 MDB CLIMATE FINANCE IN HIGH-INCOME ECONOMIES
In 2021, the multilateral development banks committed $31.051 billion to high-income
economies. Mitigation finance committed to high-income economies totalled $29.475 billion, while
adaptation finance totalled $1.576 billion.
Table 22 shows MDB climate finance for high-income economies. Of the $31.051 billion of
climate finance committed to high-income economies, $30.862 billion was from the multilateral
development banks’ own accounts and $189 million from external resources that were channelled
through them.
Table 22. MDB climate finance in high-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
Own account - 1 88 1 594 28 055 659 0 465 30 862
MDB-managed
external resources
- 1 - 5 79 79 - 26 189
MDB climate
finance
- 2 88 1 599 28 134 738 0 490 31 051
Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the multilateral development banks’ own accounts and the MDB-
managed external resources.
3. “Total MDB operations” refers to the sum of the multilateral development banks’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development
of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance of
Investment and Export Credit (ICIEC).
Table 23 shows the multilateral development banks’ climate finance for high-income economies for
adaptation and mitigation.
Table 23. MDB climate finance by scope in high-income economies, 2021 (in $ million)
MDB Adaptation finance Mitigation finance MDB climate finance
AfDB - - -
ADB 2 0 2
AIIB - 88 88
EBRD - 1 599 1 599
EIB 1 191 26 943 28 134
IDBG 260 478 738
IsDB 0 - 0
WBG 123 367 490
Total 1 576 29 475 31 051
MDB CLIMATE FINANCE IN HIGH-INCOME
ECONOMIES, 2021
3
MDB climate finance in high-income economies, 2021 |
19
3.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER IN HIGH-
INCOME ECONOMIES
The multilateral development banks report on the nature of first recipients or borrowers
15
of their
climate finance (those to which finance will flow directly from the MDBs), differentiating between
public and private recipients or borrowers. Total commitment varies significantly between the
banks’ own accounts and MDB-managed external resources, as Table 25 illustrates. Table 24
shows the split by type of recipient or borrower for the banks’ own accounts and for MDB-managed
external resources.
Table 24. MDB climate finance by source of funds and by type of recipient or borrower in high-income economies,
2021 (in $ million)
Type of recipient or borrower MDB own account MDB-managed external resources
Public recipient/borrower 19 118 67
Private recipient/borrower 11 744 122
Total 30 862 189
Table 25. MDB climate finance by type of recipient or borrower of recipient or borrower in high-income economies,
2021 (in $ million)
MDB Private Public
AfDB - -
ADB - 2
AIIB 88 -
EBRD 1 473 125
EIB 9 702 18 431
IDBG 251 487
IsDB - 0
WBG 351 139
Total 11 866 19 185
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s climate finance for low- and middle-income economies from public resources is
$3.392 billion. This means that ADB’s total climate finance from public resources is $3.394 billion considering all the economies.
15 See Annex C.1 for the definitions of public and private recipients or borrowers.
20 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
3.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN HIGH-INCOME
ECONOMIES
The multilateral development banks reported that 90% of high-income economies’ climate finance
was committed through investment loans, followed by lines of credit, which account for 4% of the
total. Illustrative examples of various types of instrument are presented in tables in Annex C.5.
Table 26. MDB climate finance by type of instrument in high-income economies, 2021 (in $ million)
Instrument type Climate finance
Equity 454
Grant 27
Guarantee 744
Investment loan 27 863
Line of credit 1 278
Policy-based financing 38
Results-based financing 3
Other instruments 645
Total 31 051
Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the category
of investment loans.
Equity $454 million
Grant $27 million
Guarantee $744 million
Investment loan $27 863 million
Line of credit $1 278 million
Policy-based financing $38 million
Results-based financing $3 million
Other instruments $645 million
TOTAL CLIMATE FINANCE BY TYPE OF INSTRUMENT
$31 051 million
0.01%
Figure 10. MDB climate finance by type of instrument in high-income economies, 2021 (in $ million)
4%
90%
1%
0.09%
2%
0.12%
2%
TOTAL
$31 051 million
MDB climate finance in high-income economies, 2021 |
21
3.1.3 MDB CLIMATE FINANCE BY REGION IN HIGH-INCOME ECONOMIES
Table 27 shows total climate finance by region. The largest proportions of climate finance were in
the East Asia and the Pacific region.
Table 27. MDB climate finance by region, in high-income economies 2021 (in $ million)
Region Climate finance
Central Asia -
East Asia and the Pacific 22
Europe: EU 29 061
Europe: Non-EU 282
Latin America and the Caribbean 957
Middle East and North Africa 17
South Asia -
Sub-Saharan Africa 3
Multi-regional 710
Total 31 051
East Asia and the Pacific $22 million
Europe: EU $29 061 million
Europe: Non-EU $282 million
Latin America and the Caribbean $957 million
Middle East and North Africa $17 million
Sub-Saharan Africa $3 million
Multi-regional $710 million
TOTAL CLIMATE FINANCE BY REGION
$31 051 million
0.009%
Figure 11. MDB climate finance by region high-income economies, 2021 (in $ million)
0.07%
2%
0.9%
0.05%
3%
94%
TOTAL
$31 051 million
3.2 MDB ADAPTATION FINANCE IN HIGH-INCOME ECONOMIES, 2021
Of the $19.187 billion committed to adaptation finance in 2021, $1.576 billion, or 8%, was
committed to high-income economies.
Table 28 presents the 2021 adaptation figures from the multilateral development banks for high-
income economies, with a breakdown of climate adaptation finance committed by them from their
own accounts and from MDB-managed external resources.
Table 28. MDB adaptation finance by MDB according to source of funds in high-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
MDB own
account
- 1 - - 1 191 259 - 97 1 548
MDB-managed
external
resources
- 1 - - - 1 - 26 28
Total - 2 - - 1 191 257 - 123 1 576
Table 29 shows a breakdown by type of recipient or borrower.
22 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 29. MDB adaptation finance by MDB and by type of recipient or borrower in high-income economies, 2021
(in $ million)
MDB Private Public
AfDB - -
ADB - 2
AIIB - -
EBRD - -
EIB 127 1 064
IDBG 3 257
IsDB - 0
WBG - 123
Total 130 1 446
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s adaptation finance for low- and middle-income economies from public resources
is $1.236 billion. This means that ADB’s total climate finance from public resources is $1.238 billion considering all the economies.
Table 30 breaks down MDB adaptation finance by the type of instrument. The multilateral
development banks reported that 94% of adaptation finance in high-income economies was
committed through investment loans.
Table 30. MDB adaptation finance by MDB and by type of instrument in high-income economies, 2021 (in $ million)
Instrument type Adaptation finance
Equity 16
Grant 17
Guarantee -
Investment loan 1 477
Line of credit 29
Policy-based financing 30
Results-based financing 3
Other instruments 4
Total 1 576
Equity $16 million
Grant $17 million
Investment loan $1 477 million
Line of credit $29 million
Policy-based financing $30 million
Results-based financing $3 million
Other instruments $4 million
TOTAL ADAPTATION FINANCE BY TYPE OF INSTRUMENT
$1 576 million
0.2%
Figure 12. MDB adaptation finance by type of instrument in high-income economies, 2021 (in $ million)
94%
1%
1%
2%
2%
0.2%
TOTAL
$1 576 million
Table 31 shows total adaptation finance in high-income economies by region. The largest
proportions of adaptation finance were in Europe: EU and Latin America and the Caribbean.
MDB climate finance in high-income economies, 2021 |
23
Table 31. MDB adaptation finance by region in high-income economies, 2021 (in $ million)
Region Adaptation finance
Central Asia -
East Asia and the Pacific 2
Europe: EU 1 201
Europe: Non-EU -
Latin America and the Caribbean 273
Middle East and North Africa -
South Asia -
Sub-Saharan Africa 3
Multi-regional 98
Total 1 576
East Asia and the Pacific $2 million
Europe: EU $1 201 million
Latin America and the Caribbean $273 million
Sub-Saharan Africa $3 million
Multi-regional $98 million
TOTAL ADAPTATION FINANCE IN BY REGION
$1 576 million
0.19%
Figure 13. MDB adaptation finance in by region high-income economies, 2021 (in $ million)
0.13%
6%
76%
17%
TOTAL
$1 576 million
Table 32 reports MDB adaptation finance for high-income economies by sector, with 30% in
institutional capacity support or technical assistance, followed by 28% in energy, transport and
other built environment and infrastructure and 19% in water and wastewater systems.
Table 32. MDB adaptation finance by sector in high-income economies, 2021 (in $ million)
Sector group Adaptation finance
Coastal and riverine infrastructure 162
Crop and food production 82
Cross-cutting sectors 35
Energy, transport and other built environment and infrastructure 438
Financial services 43
Industry, manufacturing and trade 29
Information and communications technology -
Institutional capacity support or technical assistance 477
Other agricultural and ecological resources 6
Water and wastewater systems 304
Total 1 576
24 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Coastal and riverine infrastructure $162 million
Crop and food production $82 million
Cross-cutting sectors $35 million
Energy, transport and other built
environment and infrastructure $438 million
Financial services $43 million
Industry, manufacturing and trade $29 million
Institutional capacity support
or technical assistance $477 million
Other agricultural and ecological resources $6 million
Cross-sectoral activities $304 million
TOTAL ADAPTATION FINANCE BY SECTOR
$1 576 million
2%
2%
Figure 14. MDB adaptation finance by sector in high-income economies, 2021 (in $ million)
0.38%
10%
5%
3%
19%
28%
30%
TOTAL
$1 576 million
Adaptation finance by region, for high-income economies, with a further breakdown by sector, is
presented in Table 33.
Table 33. MDB adaptation finance by sector and by region in high-income economies, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Coastal
and riverine
infrastructure
- - - - 86 - - - 77 162
Crop and food
production
- 1 78 - 3 - - - 0 82
Cross-cutting
sectors
- 1 - - 31 - - 3 1 35
Energy,
transport and
other built
environment
and
infrastructure
- - 393 - 29 - - - 16 438
Financial
services
- - 37 - 5 - - - 1 42
Industry,
manufacturing
and trade
- - 27 - - - - - 2 29
Information
and com-
munications
technology
- - - - - - - - - -
Institutional
capacity
support or
technical
assistance
- - 372 - 104 - - - 1 477
MDB climate finance in high-income economies, 2021 |
25
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Other
agricultural
and ecological
resources
- - 6 - - - - - - 6
Water and
wastewater
systems
- - 288 - 16 - - - 0 304
Total - 2 1 201 - 273 - - 3 98 1 576
3.3 MDB MITIGATION FINANCE IN HIGH-INCOME ECONOMIES, 2021
In 2021, the multilateral development banks reported a total of $63.530 billion in financial
commitments for the mitigation of climate change, with $29.475 billion, or 46%, committed to
high-income economies.
Tables 34 provides a breakdown of climate change mitigation finance committed by the multilateral
development banks from MDB own-account and external resources in high-income economies.
Table 34. MDB mitigation finance by MDB, according to source of funds in high-income economies, 2021
(in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
MDB own account - - 88 1 594 26 864 400 - 367 29 314
MDB-managed
external resources
- - - 5 79 78 - - 161
Total - - 88 1 599 26 943 478 - 367 29 475
Table 35 shows a breakdown by type of recipient or borrower.
Table 35. MDB mitigation finance by MDB and by type of recipient or borrower in high-income economies, 2021
(in $ million)
MDB Private Public
AfDB - -
ADB - 0
AIIB 88 -
EBRD 1 473 125
EIB 9 575 17 367
IDBG 248 230
IsDB - -
WBG 351 16
Total 11 736 17 739
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s climate finance for low- and middle-income economies (and all the economies)
from public resources is $2.156 billion.
Table 36 breaks down MDB mitigation finance by type of instrument. The multilateral development
banks reported that 90% of total mitigation finance was committed through investment loans in
high-income economies.
26 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 36. MDB mitigation finance by MDB and by type of instrument in high-income economies, 2021 (in $ million)
Instrument type Mitigation finance
Equity 438
Grant 10
Guarantee 744
Investment loan 26 386
Line of credit 1 249
Policy-based financing 8
Results-based financing 0
Other instruments 641
Total 29 475
Equity $438 million
Grant $10 million
Guarantee $744 million
Investment loan $26 386 million
Line of credit $1 249 million
Policy-based financing $8 million
Other instruments $641 million
TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT
$29 475 million
0.03%
0.03%
Figure 15. MDB mitigation finance by type of instrument in high-income economies, 2021 (in $ million)
1%
2%
3%
90%
4%
TOTAL
$29 475 million
Table 37 shows total mitigation finance by region. The largest proportions of mitigation finance for
high-income economies were for Europe: EU.
Table 37. MDB mitigation finance by MDB and by region in high-income economies, 2021 (in $ million)
Region Mitigation finance
Central Asia -
East Asia and the Pacific 20
Europe: EU 27 860
Europe: Non-EU 282
Latin America and the Caribbean 684
Middle East and North Africa 17
South Asia -
Sub-Saharan Africa -
Multi-regional 613
Total 29 475
MDB climate finance in high-income economies, 2021 |
27
East Asia and the Pacific $20 million
Europe: EU $27 860 million
Europe: Non-EU $282 million
Latin America and the Caribbean $684 million
Middle East and North Africa $17 million
Multi-regional $613 million
TOTAL MITIGATION FINANCE BY REGION
$29 475 million
1%
2%
2%
Figure 16. MDB mitigation finance by region in high-income economies, 2021 (in $ million)
0.07%
95%
TOTAL
$29 475 million
Table 38 reports MDB mitigation finance by sector in high-income economies, with 50% in energy,
followed by 32% in transport.
Table 38. MDB mitigation finance by sector in high-income economies, 2021 (in $ million)
Region Mitigation finance
Energy 14 508
Mining and metal production for climate action -
Manufacturing 240
Agriculture, forestry, land use and fisheries 136
Water supply and wastewater 177
Solid waste management 260
Transport 9 304
Buildings, public installations and end-use energy efficiency 874
Information and communications technology (ICT) and digital
technologies
59
Research, development and innovation 1 929
Cross-sectoral activities 1 988
Total 29 475
Energy $14 508 million
Manufacturing $240 million
Agriculture, forestry, land use and fisheries $136 million
Water supply and wastewater $177 million
Solid waste management $260 million
Transport $9 304 million
Buildings, public installations and
end-use energy efficiency $176 million
Information and communications technology (ICT)
and digital technologies $59 million
Research, Development and Innovation $1 929 million
Cross-sectoral activities $1 988 million
TOTAL MITIGATION FINANCE BY SECTOR
$29 475 million
Figure 17. MDB mitigation finance by sector in high-income economies, 2021 (in $ million)
0.2%
1%1%
0.46%
1%
3%
49%
7%
32%
7%
TOTAL
$29 475 million
28 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Mitigation finance by region for high-income economies, with a further breakdown by sector, is
presented in Table 39.
Table 39. MDB mitigation finance by sector and by region in high-income economies, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Caribbean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Energy - 20 13 695 215 418 - - - 159 14 508
Mining
and metal
production for
climate action
- - - - - - - - - -
Manufacturing - - 157 - 7 - - - 76 240
Agriculture,
forestry,
land use and
fisheries
- - 108 - 3 8 - - 17 136
Water
supply and
wastewater
- - 177 - - - - - 0 177
Solid waste
management
- - 235 - 10 - - - 15 260
Transport - - 9 203 - 0 - - - 101 9 304
Buildings,
public
installations
and end-
use energy
efficiency
- - 671 - 34 - - - 169 874
Information
and communi-
cations
technology
(ICT) and
digital
technologies
- - - - - - - - 59 59
Research,
development
and innovation
- - 1 849 66 - 9 - - 5 1 929
Cross-sectoral
activities
- 0 1 764 - 213 - - - 12 1 988
Total - 20 27 860 282 684 17 - - 613 29 475
3.4 CLIMATE CO-FINANCE IN HIGH-INCOME ECONOMIES, 2021
The multilateral development banks’ climate co-finance is based on their harmonised definitions,
which can be consulted in Section 1.3.
Table 40 shows climate co-finance flows by adaptation and mitigation for high-income countries.
In order to avoid double counting, the last column of Tables 40 and 41 nets out potentially double-
counted co-financing by considering only the proportion of co-financing for every project that
features co-financing from another multilateral development bank. These figures are also listed in
in Table 45 in Annex A.1, alongside each bank’s own climate finance flows.
MDB climate finance in high-income economies, 2021 |
29
Table 40. Climate co-finance flows by MDB and by thematic focus in high-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
climate
co-finance
Correction for
multiple MDB
financing
Mitigation finance - - 14 8 741 46 653 422 - 1 059 56 889 56 036
Adaptation finance - 0 - - 619 5 - 41 665 665
Total - 0 14 8 741 47 272 427 - 1 100 57 554 56 701
Table 41. Climate co-finance flows by MDB and by source in high-income economies, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
climate
co-finance
Correction for
multiple MDB
financing
Public direct
mobilisation
- - - - 75 0 - 41 116 116
Public co-finance
Other MDBs - - - 71 - - - 16 87 87
IDFC members - - - - 29 - - - 29 29
Other international
public
- - - - 12 411 - - 203 12 613 12 411
Other domestic
public
- 0 14 - 15 798 17 - - 15 828 15 828
Total private mobilisation
Private direct
mobilisation
- - - 6 944 389 - 241 1 580 1 580
Private indirect
mobilisation
- - - 8 665 18 015 21 - 600 27 299 26 649
Total - 0 14 8 741 47 272 427 - 1 100 57 554 56 701
30 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
The MDB 2021 climate finance commitments are presented in this year’s report in two separate
chapters: Chapter II) low-income and middle-income economies, a grouping that includes low,
lower-middle and upper-middle income economies, and Chapter III) high-income economies. More
detailed analysis, data that cannot easily be split by income level such as Climate Finance for SIDS,
and global aggregated MDB data are provided in this annex. Data in this annex provide for data
comparability of this year’s report with previous years’ reports.
Figure 18 outlines MDB climate finance commitments by income group, showing low- and middle-
income economies separately from high income economies. For data on climate finance in all
countries of operation including for earlier reporting periods back to 2015, refer to Annex B.
$ billion
2019 2020 2021
Low-income Lower-middle income Upper-middle income
High-income Multi-regional
0
10
20
30
40
Figure 18. MDB climate finance by income levels of borrowing or recipient economies, 2019-21 (in $ billion)
6
14
20
19
3 3
20
28
12
3
6
18
23
30
4
%
AfDB ADB* AIIB EBRD EIB IDBG WBGIsDB
Low-income and middle-income economies High-income economies
0
25
50
75
100
Figure 19. Total MDB climate finance commitments in all economies where the multilateral
development banks operate, 2021 (in $ million)
2 429 3 851
913
2 746 4 777
1 599
28 134
3 371
4 819
738
684 27 989
2
88 490
FURTHER DETAILED ANALYSIS OF
MDB CLIMATE FINANCE DATA
ANNEX A
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
31
Table 42 presents data on MDB climate finance and climate co-finance by type of recipient or
borrower
16
.
Table 42. Total MDB climate finance and net climate co-finance by economy income group and by type of
recipient or borrower, 2021 (in $ million)
MDB CLIMATE FINANCE
For low- and middle-income economies For high-income economies
Mitigation 33 055 29 475
Adaptation 17 611 1 576
Public 40 210 19 185
Private 10 456 11 866
CLIMATE CO-FINANCE
For low- and middle-income economies For high-income economies
Mitigation 28 844 56 036
Adaptation 14 759 665
Public 30 600 28 471
Private 13 003 28 230
Note: Public and private sector operations: This determination is based on the status of the first recipient or borrower of MDB finance. The first
recipient or borrower is considered to be public when at least 50% of the stakes or shares of the recipient or borrower are publicly owned.
Table 43 shows MDB climate finance for all economies were they operate.
Table 43. MDB climate finance, 2021 (in $ million)
AFDB ADB AIIB EBRD EIB IDBG ISDB WBG TOTAL MDBs
For low- and middle-income economies
Own account 2 020 3 552 2 746 4 500 3 256 4 372 684 26 110 47 240
MDB-managed
external
resources
409 1 212 - 276 115 448 - 1 879 3 426
For high-income economies
Own account - 1 88 1 594 28 055 659 0 465 30 862
MDB-managed
external
resources
- 1 - 5 79 79 - 26 189
Climate finance
from MDB own
account, as a
percentage of
MDB operations
from MDB own
account
44% 18% 29% 49% 49% 24% 31% 32% 36%
16 See Annex C.1 for the definitions of public and private recipients or borrowers.
32 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
AFDB ADB AIIB EBRD EIB IDBG ISDB WBG TOTAL MDBs
MDB climate
finance as a
percentage
of total MDB
operations
41% 21% 29% 50% 41% 25% 31% 32% 34%
Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the MDBs’ own accounts and the MDB-managed external resources.
3. “Total MDB operations” refers to the sum of the MDBs’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development of
the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance of Investment
and Export Credit (ICIE
5. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB
financing for three projects, amounting to $913 million, reported under ERUM is excluded from the MDB total amounts to avoid
double counting. Subtracting this amount from ADB’s total climate finance yields $3.853 billion.
(**) AIIB financing for ADB projects amounting to $1.421 billion was subtracted from total MDB operations to avoid double counting.
ANNEX A.1 TOTAL MDB CLIMATE FINANCE
This annex presents aggregate information on climate finance in low-and middle-income
economies and high-income economies.
Table 44 shows MDB adaptation and mitigation finance for all economies where they operate.
Table 44. Total MDB climate finance, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES
MDB Adaptation finance Mitigation finance MDB climate finance
AfDB 1 549 880 2 429
ADB 1 326 3 438 4 764
AIIB 651 2 096 2 746
EBRD 336 4 441 4 777
EIB 381 2 990 3 371
IDBG 1 688 3 131 4 819
IsDB 252 432 684
WBG 11 448 16 541 27 989
Total 17 611 33 055 50 666*
FOR HIGH-INCOME ECONOMIES
MDB Adaptation finance Mitigation finance MDB climate finance
AfDB - - -
ADB 2 0 2
AIIB - 88 88
EBRD - 1 599 1 599
EIB 1 191 26 943 28 134
IDBG 260 478 738
IsDB 0 - 0
WBG 123 367 490
Total 1 576 29 475 31 051
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
33
The multilateral development banks report on the nature of first recipients or borrowers
17
of their
climate finance (those to which finance will flow directly from the MDBs), differentiating between public
and private recipients or borrowers. Total commitment varies significantly between the banks’ own
accounts and MDB-managed external resources, as Table 45 illustrates. Table 46 shows the split by
type of recipient or borrower for the banks’ own accounts and for MDB-managed external resources.
Table 45. Total MDB climate finance by source of funds and by type of recipient or borrower, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES
Type of recipient or borrower MDB own account MDB-managed external resources
Public recipient or borrower 37 561 2 649*
Private recipient or borrower 9 679 777
Total 47 240 3 426
FOR HIGH-INCOME ECONOMIES
Type of recipient or borrower MDB own account MDB-managed external resources
Public recipient or borrower 19 118 67
Private recipient or borrower 11 744 122
Total 30 862 189
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for public recipient or borrower to avoid double
counting.
Table 46. Total MDB climate finance by type of recipient or borrower, 2021 (in $ million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES
MDB Private Public Private Public
AfDB 510 1 919 - -
ADB 459 4 305 - 2
AIIB 374 2 373 88 -
EBRD 2 807 1 970 1 473 125
EIB 582 2 789 9 702 18 431
IDBG 833 3 986 251 487
IsDB - 684 - 0
WBG 4 891 23 098 351 139
Total 10 456 40 210 11 866 19 185
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for public recipient or borrower to avoid double
counting.
Illustrative examples of various type of instrument are presented in tables in Annex C.5.
Table 47. Total MDB climate finance by type of instrument, 2021 (in $ million)
Instrument type For low- and middle-income economies For high-income economies
Equity 830 454
Grant 4 259 27
Guarantee 1 651 74 4
Investment loan 36 039* 27 863
17 See Annex C.1 for the definitions of public and private recipients or borrowers
34 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Line of credit 171 1 278
Policy-based financing 4 000 38
Results-based financing 2 114 3
Other instruments 1 602 645
Total 50 666 31 051
Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the category of
investment loans.
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for investment loan or borrower to avoid double
counting.
Table 48 shows MDB climate finance commitments by region.
18
Table 48. Total MDB climate finance by region, 2021 (in $ million)
Region For low- and middle-income
economies
For high-income economies
Central Asia 1 929 * -
East Asia and the Pacific 5 960 22
Europe: EU 1 170 29 061
Europe: Non-EU 5 272 282
Latin America and the Caribbean 9 820 957
Middle East and North Africa 4 071 17
South Asia 8 159 * -
Sub-Saharan Africa 12 760 3
Multi-regional 1 524 710
Total 50 666 31 051
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for three
projects reported under ERUM, amounting to $108 million and $805 million, is excluded from the Central Asia and South Asia total amounts,
respectively, to avoid double counting.
MDB climate finance allocated to small island states and to least developed economies is
presented in Table 49.
Least developed economies are defined according to the UNFCCC criteria
19
and presented based
on the UNFCCC list.
20
Small island states are defined according to the Alliance of Small Island
States (AOSIS) list.
21
Economies considered to be least developed economies and/or small island
states are listed in Annex B.
Table 49. MDB climate finance for least developed economies and small island states, 2021 (in $ million)
Mitigation
finance
Adaptation
finance
Total
Least developed economies that are not small island states 3 721 5 227 8 948
Small island states that are not least developed economies 571 511
Least developed economies and small island economies 95 124 218
Note:
Some small island states are classified as high-income economies. However, income levels are not a relevant metric in this context, as they are
highly vulnerable to climate change and require vast support for resilience measures.
18 See Table B.1 for regional groupings.
19 https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-criteria.html
20 https://unfccc.int/topics/resilience/workstreams/national-adaptation-programmes-of-action/ldc-country-information
21 https://www.aosis.org/member-states
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
35
ANNEX A.2 TOTAL MDB ADAPTATION FINANCE
Of the $81.717 billion invested in climate finance in 2021, a total of $19.187 billion was committed
to climate change adaptation finance.
Table 50 presents the 2021 adaptation figures for the multilateral development banks for all the
economies, with a breakdown of climate change adaptation finance committed by the banks from
their own accounts and from MDB-managed external resources by income economies.
Table 50. Total MDB adaptation finance in all the economies by MDB according to source of funds, 2021 (in US million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES TOTAL
MDB
MDB own
account
MDB-
managed
external
resources
MDB own
account
MDB-
managed
external
resources
MDB own
account
MDB-
managed
external
resources
AfDB 1 325 224 - - 1 325 224
ADB 1 278 48 1 1 1 279 49
AIIB 651 - - - 651 -
EBRD 302 34 - - 302 34
EIB 328 54 1 191 - 1 519 54
IDBG 1 655 33 259 1 1 914 34
IsDB 252 - 0 - 252 -
WBG 10 626 822 97 26 10 724 847
Total 16 417 1 193.7* 1 548 28 17 966 1 221*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing for
three projects amounting to $20 million reported under ERUM is excluded from the MDB total adaptation amount to avoid double counting.
Table 51. Total MDB adaptation finance by MDB and by type of recipient or borrower, 2021 (in $ million)
MDB Private Public
AfDB 275 1 274
ADB 70 1 258*
AIIB 1 650
EBRD 54 282
EIB 173 1 400
IDBG 59 1 889
IsDB - 252
WBG 37 11 534
Total 669 18 519
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing for
three projects amounting to $20 million reported under ERUM is excluded from the MDB total adaptation amount to avoid double counting.
Table 52 breaks down total MDB adaptation finance by the type of instrument. The multilateral
development banks reported that 65% of adaptation finance for all economies was committed
through investment loans, followed by grants and policy-based lending.
36 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 52. Total MDB adaptation finance by type of instrument, 2021 (in $ million)
Instrument type Total
Equity 38
Grant 2 648
Guarantee 145
Investment loan 12 531*
Line of credit 69
Policy-based financing 1 520
Results-based financing 1 182
Other instruments 1 054
Total 19 187
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $20 million, is excluded from the investment loan amount to avoid double counting.
Table 53 shows total adaptation finance for all the economies by region. The largest proportions of
adaptation finance were reported in the following regions: Sub-Saharan Africa, Latin America and
the Caribbean, and South Asia.
Table 53. Total MDB adaptation finance by region, 2021 (in $ million)
Region Total
Central Asia 485*
East Asia and the Pacific 2 310
Europe: EU 1 299
Europe: Non-EU 542
Latin America and the Caribbean 3 256
Middle East and North Africa 1 100
South Asia 3 034*
Sub-Saharan Africa 6 849
Multi-regional 312
Total 19 187
Table 54 reports total MDB adaptation finance by sector, with 26% in energy, transport and other
built environment and infrastructure, followed by 16% in cross-cutting operations, and 15% in
water and wastewater systems.
Table 54. Total MDB adaptation finance by sector, 2021 (in $ million)
Sector group Total
Coastal and riverine infrastructure 694
Crop and food production 1 781
Cross-cutting sectors 3 087
Energy, transport and other built environment and infrastructure 4 985*
Financial services 1 875
Industry, manufacturing and trade 61
Information and communications technology 176
Institutional capacity support or technical assistance 2 877*
Other agricultural and ecological resources 681*
Water and wastewater systems 2 970*
Total 19 187
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $20 million, is excluded from relevant sectors to avoid double counting.
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
37
Adaptation finance by region, for all the economies, with a further breakdown by sector, is
presented in Table 55.
Table 55. Total MDB adaptation finance by sector and by region, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Coastal
and riverine
infrastructure
- 33 - - 165 - 164 179 153 694
Crop and food
production
42 52 78 38 63 257 270 975 7 1 781
Cross-cutting
sectors
139 569 3 36 542 247 477 1 068 6 3 087
Energy,
transport and
other built
environment
and
infrastructure
210* 611 467 332 428 94 695* 2 132 17 4 985
Financial
services
1 270 37 19 198 229 399 691 33 1 875
Industry,
manufacturing
and trade
0 - 27 2 - 13 - 13 6 61
Information
and com-
munications
technology
7 - - 4 14 8 18 126 - 176
Institutional
capacity
support or
technical
assistance
12 299 372 7 1 382 85 373* 314 33 2 877
Other
agricultural
and ecological
resources
34 37 6 40 226 6 53* 227 52 681
Water and
wastewater
systems
41 439 308 64 239 162 586* 1 126 4 2 970
485 2 310 1 299 542 3 256 1 100 3 034 6 849 312 19 187
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South Asia climate
adaptation amounts, respectively, to avoid double counting.
ANNEX A.3 TOTAL MDB MITIGATION FINANCE
In 2021, the multilateral development banks reported $62.53 billion of climate change mitigation
finance committed to all the economies.
Table 56 provides a breakdown of climate change mitigation finance committed by the multilateral
development banks from their own-account and external resources for all economies where they
operate.
38 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 56. Total MDB mitigation finance by MDB, according to source of funds, 2021 (in $ million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES TOTAL
MDB
MDB own
account
MDB-
managed
external
resources
MDB own
account
MDB-
managed
external
resources
MDB own
account
MDB-
managed
external
resources
AfDB 695 185 - - 695 185
ADB 2 274 1 164 0 - 2 274 1 164
AIIB 2 096 - 88 - 2 184 -
EBRD 4 198 243 1 594 5 5 792 247
EIB 2 929 61 26 864 79 29 793 140
IDBG 2 716 415 400 78 3 117 493
IsDB 432 - - - 432 -
WBG 15 483 1 057 367 - 15 851 1 057
Total 30 823 2 232* 29 314 161 60 137 2 393*
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing for
three projects amounting to $893 million reported under ERUM is excluded from the MDB total mitigation amount to avoid double counting.
Table 57 shows a breakdown by type of recipient or borrower.
Table 57. Total MDB mitigation finance by MDB and by type of recipient or borrower, 2021 (in $ million)
MDB Private Public
AfDB 235 645
ADB 389 3 049*
AIIB 461 1 723
EBRD 4 226 1 813
EIB 10 112 19 821
IDBG 1 025 2 584
IsDB - 432
WBG 5 205 11 703
Total 21 654 40 876
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects amounting to $893 million reported under ERUM is excluded from the MDB total mitigation amount to avoid double
counting.
Table 58 breaks down MDB mitigation finance by type of instrument. The multilateral development
banks reported that 82% of total mitigation finance was committed through investment loans,
followed by guarantees and policy-based lending.
Table 58. Total MDB mitigation finance by type of instrument, 2021 (in $ million)
Instrument type Total
Equity 1 245
Grant 1 638
Guarantee 2 250
Investment loan 51 371*
Line of credit 1 380
Policy-based financing 2 517
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
39
Instrument type Total
Results-based financing 936
Other instruments 1 193
Total 62 530
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $893 million, is excluded from the investment loan amount to avoid double counting.
Table 59 shows total mitigation finance by region. The largest proportions of mitigation finance
were in the following regions: Europe: EU, Latin America and the Caribbean, Sub-Saharan Africa,
and South Asia.
Table 59. Total MDB mitigation finance by region, 2021 (in $ million)
Region Total
Central Asia 1 444*
East Asia and the Pacific 3 673
Europe: EU 28 932
Europe: Non-EU 5 011
Latin America and the Caribbean 7 521
Middle East and North Africa 2 987
South Asia 5 125*
Sub-Saharan Africa 5 914
Multi-regional 1 922
Total 62 530
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.
Table 60 reports MDB mitigation finance for all the economies by sector, with 39% going to the
energy sector, followed by transport with 26%.
Table 60. Total MDB mitigation finance by sector, 2021 (in $ million)
Region Total
Energy 24 184*
Mining and metal production for climate action 18
Manufacturing 1 889
Agriculture, forestry, land use and fisheries 2 547
Water supply and wastewater 1 455*
Solid waste management 1 708*
Transport 16 007*
Buildings, public installations and end-use energy
efficiency
3 406
Information and communications technology (ICT) and
digital technologies
357
Research, development and innovation 1 960
Cross-sectoral activities 8 999
Total 62 530
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $893 million, is excluded from relevant sectors to avoid double counting.
Mitigation finance by region for all the economies, with further breakdown by sector, is presented
40 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
in Table 61.
Table 61. Total MDB mitigation finance by sector and by region, 2021 (in $ million)
Central
Asia
East Asia
and the
Pacific
Europe:
EU
Europe:
Non-EU
Latin
America
and the
Carib-
bean
Middle
East and
North
Africa
South
Asia
Sub-
Saharan
Africa
Multi-
regional
Total
Energy 370 1 496 14 042 1 892 1 462 485 1 601* 2 386 450 24 184
Mining
and metal
production for
climate action
- - 18 - - - - - - 18
Manufacturing 52 46 165 824 75 282 88 147 211 1 889
Agriculture,
forestry,
land use and
fisheries
100 405 109 86 758 66 146 704 172 2 547
Water
supply and
wastewater
115 126 177 31 482 27 401* 80 16 1 455
Solid waste
management
19 408 235 189 130 78 3 81* 112 155 1 708
Transport 398* 426 9 291 1 413 618 1 726 1 454* 388 293 16 007
Buildings,
public
installations
and end-
use energy
efficiency
83 299 1 166 389 615 100 227 198 328 3 406
Information
and com-
munications
technology
(ICT) and digital
technologies
- - - 6 225 - - 2 125 357
Research,
development
and innovation
3 1 1 849 66 11 10 2 - 18 1 960
Cross-sectoral
activities
304 466 1 879 114 3 146 213 825 1 898 154 8 999
Total 1 444 3 673 28 932 5 011 7 521 2 987 5 125 5 914 1 922 62 530
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.
ANNEX A.4 CLIMATE CO-FINANCE AND CLIMATE FINANCE RATIOS
The multilateral development banks’ climate co-finance is based on their harmonised definitions,
which can be consulted in Section 1.3.
Table 62 shows climate co-finance flows by adaptation and mitigation for all the economies
where multilateral development banks operate. In order to avoid double counting, the last column
of Tables 62 and 63 nets out potentially double-counted co-financing by considering only the
proportion of co-financing for every project that features co-financing from another multilateral
development bank.
Table 63 shows 2021 climate co-finance flows as reported by each institution, segmented by the
source of co-financing. These 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
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
41
or more multilateral development banks jointly finance a project, which results in some overlap
between the gross co-finance figures reported by the different banks. This table reflects the 2021
climate co-finance flows, including the direct and indirect mobilisation attributed to guarantees.
The guarantee exposure of each multilateral development bank has been shown as “own account”
in Tables 2, 23, 43 and 64.
Table 64 shows climate co-finance for low- and middle-income economies, high-income economies
and totals, for each multilateral development bank. It also presents climate finance ratios for each
MDB, calculated with total climate co-finance numbers from Table 62.
Table 62. Total climate co-finance flows by MDB and by thematic focus, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG
Total
climate
co-finance
Correction
for multiple
MDB
financing
Mitigation
finance
1 935 2 785 704 8 752 6 133 2 131 5 127 8 566 36 133 28 844
Adaptation
finance
4 034
2 388 3 773 312 797 229 1 756 5 063 18 351 14 759
Total 5 969 5 173 4 477 9 063 6 929 2 360 6 883 13 629 54 484 43 603
FOR HIGH-INCOME ECONOMIES
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG
Total
climate
co-finance
Correction
for multiple
MDB
financing
Mitigation
finance
- - 14 8 741 46 653 422 - 1 059 56 889 56 036
Adaptation
finance
- 0 - - 619 5 - 41 665 665
Total - 0 14 8 741 47 272 427 - 1 100 57 554 56 701
TOTAL CLIMATE CO-FINANCE
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG
Total
climate
co-finance
Correction
for multiple
MDB
financing
Mitigation
finance
1 935 2 785 718 17 493 52 786 2 553 5 127 9 625 93 022 84 880
Adaptation
finance
4 034 2 388 3 773 312 1 415 234 1 756 5 104 19 016 15 423
Total 5 969 5 173 4 491 17 805 54 201 2 787 6 883 14 729 112 038 100 303
42 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table 63. Total climate co-finance flows by MDB and by source, 2021 (in $ million)
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG
Total
climate
co-
finance
Correction
for
multiple
MDB
financing
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
Public direct
mobilisation
- - - - - - - - 329 75 435 0 - - 4,656 41 5 536 5 536
Public co-finance - - - - - - - - - - - - - - - - -
Other MDBs 1 913 - 83 - 2 043 - 2 068 71 1 203 - - - 4 067 - 1 158 16 12 623 12 623
IDFC members 561 - 556 - 73 - 580 - 905 29 780 - 83 - 72 - 3 639 2 782
Other international
public
234 - 55 - 3 - 114 - 717 12 411 - - 2 733 - 943 203 17 412 13 896
Other domestic
public
2 474 - 3 523 - 2 358 14 969 - 2 409 15 798 205 17 - - 85 - 27 851 24 235
Total private
mobilisation
- - - - - - - - - - - - - - - -
Private direct
mobilisation
- - 98 - - - 449 6 55 944 591 389 - - 3 421 241 6 195 6 195
Private indirect
mobilisation
787 - 859 - - - 4 883 8 665 1 311 18 015 349 21 - - 3 294 600
38 783
35 038
Total 5 969 5 173 4 491 17 805 54 201 2 787 6 883 14 729
112 038
100 303
Note:
1. Co-financing figures are current as of 13 May 2022. Fluctuations are expected due to changes in project financing between board approvals, loan signatures and execution.
2. For non-commercial guarantees, private direct mobilisation corresponds to the underlying investment covered by the guarantee. For MDBs reporting on own account associated with non-commercial guarantees, an adjustment must be made
by the MDB to avoid double-counting.
3. Local counterpart financing is reported under “Other domestic public”.
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA |
43
Table 64. Total MDB climate co-finance and climate finance ratios, 2021
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
Climate co-finance
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
For
low- and
middle-
income
econo-
mies
For high-
income
econo-
mies
Climate finance by
MDB
2 429 - 4 764* 2 2 74 6 88 4 777 1 599 3 371 28 134 4 819 738 684 0 27 989 490 81 717*
Climate co-finance 5 969 - 5 173 - 4 477 14 9 063 8 741 6 929 47 272 2 360 427 6 883 - 13 629 1 100 112 021
Correction for
multiple MDB
financing
(2 114) - (39) - (1 328) - (1 079) (65) (562) - - - (2 602) - (3 158) (788) (11 718)
MDB climate
activity finance
6 283 - 9 898 2 5 895 102 12 761 10 275 9 739 75 405 7 180 1 165 4 965 0 38 460 802 182 020*
Total MDB climate
activity finance
6 283 9 900 5 997 23 037 85 145 8 345 4 965 39 262 182 020
Climate finance
ratios
AfDB ADB AIIB EBRD EIB IDBG IsDB WBG Total
Climate finance
from MDB own
account, as a
percentage of MDB
operations from
MDB own account
44% 18% 29% 49% 49% 24% 31% 32% 36%
MDB climate
finance as a
percentage of total
MDB operations
41% 21% 29% 50% 41% 25% 31% 32% 34%
Note:
1. The AIIB’s 2021 climate finance share was calculated including projects financed through the Bank’s COVID-19 Crisis Recovery Facility (CRF). This share would be 48% if CRF projects were excluded. The nature of AIIB CRF projects means that
they have few or no climate finance components.
2. “Total MDB climate activity finance” refers to the sum of “Total MDB climate finance” and “Climate co-finance”.
3. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, ADB administers financing from AIIB for several projects, some of which have components that contribute to climate finance. For 2021, ADB reports
climate adaptation finance of $20 million and climate mitigation finance of $893 million from ADB-administered financing from AIIB. To avoid double counting, these amounts are excluded from the 2021 total MDB amounts as AIIB reports
climate finance for the same projects as a share of their financing under own resources.
GEOGRAPHICAL COVERAGE OF THE REPORT
44 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
The inclusion of economies, and the terms and names used in this report to refer to geographical
or other territories, political and economic groupings and units, do not constitute and should not be
construed as constituting an express or implied position, endorsement, acceptance or expression
of opinion by the MDBs or their members concerning the status of any country, territory, grouping
and unit, or delimitation of its borders, or sovereignty.
Tables B.1 and B.2. present a list of economies covered by at least one of the MDBs, taken into
account for climate finance data presented in this report and categorised in accordance with
the World Bank’s classification list dated June 2021. Least developed economies are defined
according to the UNFCCC list
22
and small island states are defined according to the Alliance of
Small Island States (AOSIS) list. Note that some least developed economies are also small island
states. In those cases, they are identified as “both”.
Climate finance for economies marked with an asterisk (*) has not been reported in previous
editions of the Joint Report on MDBs’ Climate Finance.
Table B.1. Climate finance in low- and middle-income economies for 2015, 2016, 2017, 2018, 2019, 2020 and
2021 (in $ million)
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Afghanistan South Asia Low
income
Least
Developed
Economy
- 173 147 144 281 65 485
Albania Non-EU Upper
middle
income
110 174 15 111 114 34 66
Algeria Middle
East and
North
Africa
Lower
middle
income
1 - - - - - -
Angola Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
- 15 72 43 155 470 260
Argentina Latin
America
and the
Caribbean
Upper
middle
income
314 508 2 276 1 434 917 121 1 204
Armenia Non-EU Upper
middle
income
108 45 132 45 107 79 210
Azerbaijan Non-EU Upper
middle
income
16 171 250 20 8 11 45
Bangladesh South Asia Lower
middle
income
Least
Developed
Economy
899 1 315 200 1 296 2 144 1 127 732
Belarus Non-EU Upper
middle
income
43 49 7 241 278 146 30
22 http://unfccc.int/cooperation_and_support/ldc/items/3097.php
GEOGRAPHICAL COVERAGE OF THE REPORT
ANNEX B
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
45
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Belize Latin
America
and the
Caribbean
Lower
middle
income
Small Island
State
51 4 20 2 13 1 11
Benin Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
21 3 44 126 297 123 232
Bhutan South Asia Lower
middle
income
Least
Developed
Economy
2 17 7 4 2 20 24
Bolivia Latin
America
and the
Caribbean
Lower
middle
income
405 373 321 363 124 77 1
Bosnia and
Herzegovina
Non-EU Upper
middle
income
27 95 101 110 180 78 133
Botswana Sub-
Saharan
Africa
Upper
middle
income
- - 143 - 19 - 170
Brazil Latin
America
and the
Caribbean
Upper
middle
income
548 914 766 1 473 1 700 1 436 2 006
Bulgaria EU Upper
middle
income
58 156 112 137 5 41 130
Burkina Faso Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
9 7 166 130 194 134 311
Burundi Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
25 22 28 27 3 108 47
Cambodia East Asia
and the
Pacific
Lower
middle
income
Least
Developed
Economy
46 85 86 117 139 121 171
Cameroon Sub-
Saharan
Africa
Lower
middle
income
2 17 329 186 761 57 423
Cape Verde Sub-
Saharan
Africa
Lower
middle
income
Small Island
State 1 - 15 - 11 5 18
Central African
Republic
Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
7 - 10 23 99 8 106
Chad Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
6 - - 41 58 101 40
China East Asia
and the
Pacific
Upper
middle
income
1 091 2 349 2 305 2 019 2 424 2 363 1 867
46 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Colombia Latin
America
and the
Caribbean
Upper
middle
income
182 904 747 719 980 657 1 595
Comoros Sub-
Saharan
Africa
Lower
middle
income
Both
5 - 4 - 23 93 3
Congo Sub-
Saharan
Africa
Lower
middle
income
- 25 2 58 58 1 111
Costa Rica Latin
America
and the
Caribbean
Upper
middle
income
200 - 5 4 162 379 214
Côte d’Ivoire Sub-
Saharan
Africa
Lower
middle
income
5 73 296 346 535 453 406
Democratic
Republic of the
Congo
Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
10 153 128 6 98 305 835
Djibouti Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
- 2 - 41 21 103 14
Dominica Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
- - - 39 70 19 3
Dominican
Republic
Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
1 137 3 509 258 1 294
Ecuador Latin
America
and the
Caribbean
Upper
middle
income
582 325 27 792 616 446 317
Egypt Middle
East and
North
Africa
Lower
middle
income
511 693 1 585 1 597 1 611 1 508 2 232
El Salvador Latin
America
and the
Caribbean
Lower
middle
income
- - 29 52 128 217 525
Equatorial
Guinea
Sub-
Saharan
Africa
Upper
middle
income
Least
Developed
Economy
- - - - 63 - -
Eritrea Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- - 7 - 34 - -
Eswatini Sub-
Saharan
Africa
Lower
middle
income
3 31 - 58 8 27 1
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
47
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Ethiopia Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
79 206 192 1 154 1 214 191 1 154
Fiji East Asia
and the
Pacific
Upper
middle
income
Small Island
State 53 31 15 - 2 18 62
Gabon Sub-
Saharan
Africa
Upper
middle
income
- 43 24 95 67 28 77
Gambia Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 5 9 53 21 29 16
Georgia Non-EU Upper
middle
income
109 187 88 110 415 304 314
Ghana Sub-
Saharan
Africa
Lower
middle
income
32 72 81 63 353 89 148
Grenada Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
- - 1 12 - 37 4
Guatemala Latin
America
and the
Caribbean
Upper
middle
income
- 3 22 31 334 33 735
Guinea Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 7 17 64 90 29 250
Guinea-Bissau Sub-
Saharan
Africa
Low
income
Both
10 - 3 12 8 12 11
Guyana Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
1 7 2 15 15 - 31
Haiti Latin
America
and the
Caribbean
Lower
middle
income
Both
41 4 143 234 107 100 153
Honduras Latin
America
and the
Caribbean
Lower
middle
income
253 44 46 99 184 250 477
India South Asia Lower
middle
income
1 948 3 017 2 678 3 703 3 671 3 549 3 735
Indonesia East Asia
and the
Pacific
Lower
middle
income
674 578 873 773 959 1 172 1 637
Iran Middle
East and
North
Africa
Lower
middle
income
- - - - 0 - -
48 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Iraq Middle
East and
North
Africa
Upper
middle
income
8 610 321 446 103 14 149
Jamaica Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
21 57 52 290 3 52 43
Jordan Middle
East and
North
Africa
Upper
middle
income
238 412 517 272 457 262 298
Kazakhstan Central
Asia
Upper
middle
income
438 521 389 260 364 96 564
Kenya Sub-
Saharan
Africa
Lower
middle
income
260 159 581 1 161 378 451 583
Kiribati East Asia
and the
Pacific
Lower
middle
income
Both
- 11 - 2 32 49 1
Kosovo Non-EU Upper
middle
income
74 56 31 48 96 57 96
Kyrgyz
Republic
Central
Asia
Lower
middle
income
73 179 55 118 189 101 109
Lao People’s
Democratic
Republic
East Asia
and the
Pacific
Lower
middle
income
Least
Developed
Economy
106 13 40 109 72 59 91
Lebanon Middle
East and
North
Africa
Upper
middle
income
303 27 82 581 241 2 54
Lesotho Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
- 11 5 15 108 9 22
Liberia Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
3 68 26 4 70 41 81
Madagascar Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 37 131 89 280 195 454
Malawi Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
58 1 210 218 210 301 27
Malaysia East Asia
and the
Pacific
Upper
middle
income
- - - - 0 - -
Maldives South Asia Upper
middle
income
Small Island
State 5 35 19 2 2 148 83
Mali Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 9 104 94 144 102 9
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
49
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Marshall
Islands
East Asia
and the
Pacific
Upper
middle
income
Small Island
State 2 1 21 32 12 17 2
Mauritania Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
- 6 - 11 39 56 31
Mauritius Sub-
Saharan
Africa
Upper
middle
income
Small Island
State 9 - - 1 - 81 -
Mexico Latin
America
and the
Caribbean
Upper
middle
income
330 277 1 211 1 193 1 006 575 1 277
Micronesia East Asia
and the
Pacific
Lower
middle
income
Small Island
State - - - - 46 23 40
Moldova Non-EU Upper
middle
income
45 106 110 7 68 186 189
Mongolia East Asia
and the
Pacific
Lower
middle
income
13 44 150 356 162 255 57
Montenegro Non-EU Upper
middle
income
62 1 68 25 7 13 12
Morocco Middle
East and
North
Africa
Lower
middle
income
914 729 668 1 057 927 842 916
Mozambique Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
111 51 55 224 408 312 397
Myanmar East Asia
and the
Pacific
Lower
middle
income
Least
Developed
Economy
81 107 212 178 90 574 14
Namibia Sub-
Saharan
Africa
Upper
middle
income
- - 58 46 5 82 20
Nepal South Asia Lower
middle
income
Least
Developed
Economy
567 111 204 435 252 1 022 280
New Caledonia East Asia
and the
Pacific
High
income
Small Island
State
- - - - 1 0 0
Nicaragua Latin
America
and the
Caribbean
Lower
middle
income
207 49 235 56 56 20 98
Niger Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
12 163 47 29 273 164 219
Nigeria Sub-
Saharan
Africa
Lower
middle
income
1 102 34 1 155 170 1 050 1 343
50 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
North
Macedonia
Non-EU Upper
middle
income
27 14 8 18 99 72 149
Pakistan South Asia Lower
middle
income
1 161 673 1 018 1 305 1 294 944 2 704
Panama Latin
America
and the
Caribbean
Upper
middle
income
112 25 350 171 67 140 128
Papua New
Guinea
East Asia
and the
Pacific
Lower
middle
income
Small Island
State 36 6 127 8 25 22 84
Paraguay Latin
America
and the
Caribbean
Upper
middle
income
4 4 51 294 116 542 33
Peru Latin
America
and the
Caribbean
Upper
middle
income
85 309 306 201 203 287 571
Philippines East Asia
and the
Pacific
Lower
middle
income
657 638 167 505 1 693 878 990
Romania EU Upper
middle
income
249 196 887 768 316 455 1 041
Russian
Federation
Non-EU Upper
middle
income
55 - - - - - 95
Rwanda Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
63 57 203 217 121 355 293
Samoa East Asia
and the
Pacific
Lower
middle
income
Small Island
State 22 - 4 5 66 9 5
São Tomé and
Príncipe
Sub-
Saharan
Africa
Lower
middle
income
Both
4 6 11 - 32 31 2
Senegal Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
41 16 679 272 168 265 441
Serbia Non-EU Upper
middle
income
100 143 290 621 284 332 418
Sierra Leone Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 10 2 51 51 55 112
Solomon
Islands
East Asia
and the
Pacific
Lower
middle
income
Both
- 10 36 10 101 17 6
Somalia Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 8 - 1 27 228 147
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
51
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
South Africa Sub-
Saharan
Africa
Upper
middle
income
55 59 103 544 178 557 520
South Sudan Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- 1 39 - 28 15 70
Sri Lanka South Asia Lower
middle
income
84 212 574 72 604 192 87
St, Lucia Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
- - 2 35 1 15 6
St, Vincent
and the
Grenadines
Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
- - 9 - 11 10 13
Sudan Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
5 - 13 41 58 13 572
Suriname Latin
America
and the
Caribbean
Upper
middle
income
Small Island
State
1 8 26 32 95 19 -
Syrian Arab
Republic
Middle
East and
North
Africa
Low
income
- - - - 1 -
Tajikistan Central
Asia
Lower
middle
income
149 34 232 192 116 214 150
Tanzania Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
243 138 549 198 44 376 455
Thailand East Asia
and the
Pacific
Upper
middle
income
176 91 130 533 97 76 316
Timor-Leste East Asia
and the
Pacific
Lower
middle
income
Both
- 5 9 2 - 46 40
Togo Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
- - 6 42 32 43 40
Tonga East Asia
and the
Pacific
Upper
middle
income
Small Island
State 15 8 1 14 83 28 27
Tunisia Middle
East and
North
Africa
Lower
middle
income
19 96 387 265 427 90 192
Türkiye Non-EU Upper
middle
income
2 582 2 135 1 790 1 450 1 449 1 383 2 386
52 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Turkmenistan Central
Asia
Upper
middle
income
1 1 6 5 - 4 2
Tuvalu East Asia
and the
Pacific
Upper
middle
income
Both
7 3 1 10 26 13 3
Uganda Sub-
Saharan
Africa
Low
income
Least
Developed
Economy
124 15 166 621 283 394 330
Ukraine Non-EU Lower
middle
income
940 865 833 519 1 115 1 192 1 128
Uzbekistan Central
Asia
Lower
middle
income
61 55 270 1 162 823 1 005 1 029
Vanuatu East Asia
and the
Pacific
Lower
middle
income
Small Island
State 23 51 17 - - 84 5
Vietnam East Asia
and the
Pacific
Lower
middle
income
385 1 211 862 210 445 510 523
West Bank and
Gaza
Middle
East and
North
Africa
Lower
middle
income
5 1 2 15 22 77 28
Yemen Middle
East and
North
Africa
Low
income
Least
Developed
Economy
- - - 78 131 23 169
Zambia Sub-
Saharan
Africa
Lower
middle
income
Least
Developed
Economy
68 20 140 113 81 45 20
Zimbabwe Sub-
Saharan
Africa
Lower
middle
income
12 18 24 - 4 36 8
Table B.2. Climate finance in high-income economies for 2015, 2016, 2017, 2018, 2019, 2020 and 2021
(in $ million)
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Austria EU
High
income
1 101* 1 188* 852* 344* 397 870 453
Bahamas
Latin
America
and the
Caribbean
High
income
Small Island
State
1 1 44 100 4 218 143
Bahrain
Middle
East and
North
Africa
High
income
Small
Island State
- - - - - - 32
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
53
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Barbados
Latin
America
and the
Caribbean
High
income
Small Island
State
1 5 - - 53 158 117
Belgium EU
High
income
427* 1 351* 689* 697* 587* 432* 1 344
Chile
Latin
America
and the
Caribbean
High
income
119 153 208 7 22 459 506
Cook Islands
East Asia
and the
Pacific
High
income
Small Island
State
- 4 12 - 5 5 -
Croatia EU
High
income
174 16 68 311 36 134 281
Cyprus EU
High
income
22 27 46 34 45 91 9
Czech
Republic
EU
High
income
91 11* 144* 59* 620 498 733
Denmark EU
High
income
115* 2* 151* 175* 335 275 564
Estonia EU
High
income
47 89 5 8 10 182 89
Finland EU
High
income
420* 1 357* 639* 942* 284 258 575
France EU
High
income
4 185* 3 124* 4 461* 2 673* 3 669 4 895 6 971
Germany EU
High
income
1 669* 2 390* 1 768* 1 868* 1 711 3 160 2 181
Greece EU
High
income
216* 91 673 225 732 1 353 1 193
Hungary EU
High
income
497 155 31 155 155 70 592
Iceland EU
High
income
- 189* - - - - -
Ireland EU
High
income
188* 219* 148* 221* 144 449 262
Israel
Middle
East and
North
Africa
High
income
160 - - - - - 17
Italy EU
High
income
2 593* 2 437* 2 492* 1 964* 1 985 3 473 3 546
Latvia EU
High
income
247 2 86 - 102 2 68
Lithuania EU
High
income
183 215 95 157 30 559 131
Luxembourg EU
High
income
60* 3* - - 223 0 7
Malta
Middle
East and
North
Africa
High
income
- - - - 1 0 -
54 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Nauru
East Asia
and the
Pacific
High
income
- - 3 62 22 - -
Netherlands EU
High
income
630* 465* 367* 913* 816 795 1 433
New Caledonia
East Asia
and the
Pacific
High
income
- - - - 1 0 -
Norway Non-EU
High
income
- 6* 347* 74* 72 - 282
Oman
Middle
East and
North
Africa
High
income
- - - - 264 - -
Palau
East Asia
and the
Pacific
High
income
Small Island
State
- - - 2 - 8 1
Poland EU
High
income
1 189 1 806 1 562 1 286 2 095 2 790 3 190
Portugal EU
High
income
- - - - 303 296 248
Seychelles
Sub-
Saharan
Africa
High
income
Small Island
State
25 - - 2 0 5 9
Singapore
East Asia
and the
Pacific
High
income
Small
Island State
- - - - - - 20
Sint Maarten
(Dutch part)
Latin
America
and the
Caribbean
High
income
Small Island
State
- - - - 118 55 25
Slovak
Republic
EU
High
income
302 87 53 281 143 36 74
Slovenia EU
High
income
154 18 47 1 93 6 46
Spain EU
High
income
1 973* 560* 1 876* 1 526* 2 561 3 259 4 498
Sweden EU
High
income
557* 417* 1 431* 1 038* 1 383 1 681 572
Switzerland
Europe &
Central
Asia
High
income
- 6 - - 2 - -
Trinidad and
Tobago
Latin
America
and the
Caribbean
High
income
Small Island
State
1 1 - - - 21 1
United Arab
Emirates
Middle
East and
North
Africa
High
income
- - - - 2 2 2
United
Kingdom
EU
High
income
4 010* 3 272* 376* 255 179 - -
Uruguay
Latin
America
and the
Caribbean
High
income
139 100 113 143 342 306 164
ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT |
55
Table B.3. Climate finance in regional, global and multi-regional projects for 2015, 2016, 2017, 2018, 2019,
2020 and 2021 (in $ million)
Economy Region Income Least
Developed
Economy/
Small
Island
State
Total climate finance in reporting year, in $ million
2015 2016 2017 2018 2019 2020 2021
Regional Regional Regional 1 427 409 1 436 2 143 2 668 2 425 4 106
Global Global Global 169 77 - - 103 145 188
Multi-regional
Multi-
regional
Multi-
regional
147 52 193 339 20 343 75
Note: Climate finance figures for the Czech Republic were reported under the EU-12 region in the 2015 Joint Report on MDBs’ Climate Finance
figures for Greece were reported under the EU-12 region starting from the 2016 edition of the report.
To facilitate comparability with data reported in previous years, Figure B.1 presents climate finance
commitments for the period 2011-18 as in past reports, plus the column for 2019-21 for the same
set of economies. Note, however, that this figure is provided for historical comparison only. The
2021 edition of the report includes all economies where the MDBs operate, with a disaggregation
by the income level of the borrowing or recipient country.
$ billion
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
AfDB
ADB ADB* AIIB EBRD EIB IDBG IsDB WBG
0
20
40
60
Figure B.1. Climate finance commitments for 2011-21 (in $ billion)
10.7
5.6
3.7
3.2
27.0
5.3
27.4
2.2
1.6
12.7
3.7
3.1
3.3
26.8
1.9
2.2
9.4
5.2
3.5
3.3
23.8
1.2
1.7
1.2
11.8
2.5
5.2
4.1
2.9
28.3
1.9
10.7
5.1
3.2
2.9
25.1
1.4
11.5
2.7
4.3
3.5
4.4
1.1
35.2
13.2
4.3
5.5
4.6
5.2
43.1
21.3
5.7
5.0
3.8
4.0
3.3
46.4
18.8
6.5
5.0
5.0
7.1
3.6
0.5
45.4
22.0
7.2
3.4
3.9
5.3
0.3
1.2
2.1
58.8
28.5
5.6
2.8
6.4
8.6
(3.9
0.7
2.4
0.9)
4.8
Notes:
1. Annex B details the economies reported for previous years.
2. In past editions of the Joint Report on Multilateral Development Banks’ Climate Finance, for the years 2011-18, EIB climate finance figures
were restricted to developing and emerging economies in transition where other MDBs were operating and did not include other economies
where only the EIB was operating and supported climate action.
3. In the years 2011-14, the numbers for the WBG included only IFC and WB, and IFC included short-term finance (such as trade finance).
Since 2015 IFC has not included short-term finance when reporting its climate finance figures. MIGA finance has been included since 2015.
4. (*) For ADB, external resources under Management (ERUM) includes finance administered for other clients, including AIIB. ADB administers
several AIIB projects, some of which have climate finance. For 2021, ADB’s climate adaptation finance of $19 million and climate mitigation
finance of $893 million from ADB-administered AIIB projects are reported under ERUM. As AIIB reports climate finance as a share of their
financing for these projects under their own resources, the 2021 MDB totals have excluded these figures from ADB to avoid double counting.
56 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
ANNEX C.1 DEFINITIONS AND CLARIFICATIONS
Avoiding double counting: Where the same project, sub-project or project element contributes
to mitigation and adaptation, an MDB’s individual processes will determine which proportion is
counted as mitigation or as adaptation, so that the actual financing will not be recorded more
than once. Some MDBs are reporting as a separate category climate finance in projects where the
same components or elements contribute to mitigation and adaptation simultaneously. The MDBs
are working on the best method for reporting projects where the same components or elements
contribute to both mitigation and adaptation.
Conservativeness: Where data are unavailable, any uncertainty must be overcome by taking
a conservative approach, where under-reported rather than over-reported climate finance is
preferable.
Financing instruments: This report accounts for climate finance through the largest and most
relevant development finance instruments of MDBs, including grants, loans, guarantees, equity,
and performance-based instruments.
Granularity: MDBs report climate finance by taking only those components and/or sub-
components or elements or proportions of projects with activities that contribute directly to or
promote climate change adaptation and/or mitigation.
Investments and technical assistance: Refers to vehicles that MDBs use to channel specific
investments to finance capital and recurrent expenditures for goods and services, as well as to
specialised advisory services and capacity-building initiatives.
MDB-managed external resources: Refers to the volume of operations supported by bilateral
institutions through dedicated climate finance entities such as the GEF and CIF, or other donor
funds such as EU blending facilities, which may also be reported to the Development Assistance
Committee of the Organisation for Economic Co-operation and Development (OECD) by contributor
countries.
Point of reporting: Data reported herein reflects financial commitments at the time of board
approval or financial agreement signature and is therefore based on ex-ante estimations. All efforts
have been made to prevent double counting. No revisions will be issued in cases where a project’s
scope changes later to either increase or decrease climate financing.
Private direct mobilisation: Financing from a private entity on commercial terms due to the
active and direct involvement of an MDB leading to commitment. Evidence of active and direct
involvement includes mandate letters, fees linked to financial commitment or other valid or
auditable evidence of an MDB’s active and direct role leading to commitments by private financiers.
Private direct mobilisation does not include sponsor financing.
Private indirect mobilisation: Financing from private entities supplied in connection with a
specific activity for which an MDB is providing financing, where no MDB is playing an active or
direct role that leads to the commitment of the private entity’s finance. Private indirect mobilisation
includes sponsor financing, if the sponsor qualifies as a private entity.
Public and private sector operations: This determination is based on the status of the first
recipient or borrower of MDB finance. The first recipient or borrower is considered to be public
when at least 50% of the stakes or shares of the recipient or borrower are publicly owned.
Public direct mobilisation: Financing from a public entity due to the active and direct involvement
of an MDB leading to commitment. Evidence of active and direct involvement includes mandate
letters or other valid or auditable evidence of an MDB’s active and direct role. The main difference
METHODOLOGIES AND DEFINITIONS
ANNEX C
ANNEX C: METHODOLOGIES AND DEFINITIONS |
57
between an external resource under MDB management (ERUM) and a public direct mobilisation is
the disbursement which under public direct mobilisation goes directly from a public entity to the
beneficiary.
Recipient or 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 2021. 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: These include 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 that the value is below $0.5 million while a “—“ means that no amount was reported. As
all financial figures are rounded to the nearest $ million, calculations contained in a table may vary
slightly and may not always add up to 100% or to the total shown.
ANNEX C.2 JOINT METHODOLOGY FOR TRACKING
CLIMATE CHANGE ADAPTATION FINANCE
In 2021, the MDBs commenced a review of the joint MDB methodology for tracking adaptation
finance. This review aims to take stock of recent developments in the field of adaptation finance,
MDBs’ efforts to support climate adaptation and resilience through a wide range of sectors
beyond traditional infrastructure sectors, and the increasing diversity of financial modalities that
are used to support adaptation and resilience. This review, expected to be completed in 2022,
will complement ongoing efforts by MDBs to enhance the robustness and transparency of climate
finance tracking and support climate action, in line with the objectives of the Paris Agreement.
Background and guiding principles
Climate resilience and adaptation are intrinsically linked to development. This makes it challenging
to accurately estimate adaptation finance elements in development operations. In response
to this challenge, the joint MDB Working Group on Climate Finance Tracking applies a common
adaptation finance tracking methodology to identify within the development operations of MDBs
those specific adaptation activities (or, in other words, the differentiating elements of development
operations) that are carried out in response to perceived or expected climate change impacts. The
methodology applies a context-specific, location-specific and granular approach, and estimations
are made conservatively to reduce scope for over-reporting of adaptation finance.
The MDB adaptation finance tracking methodology considers the sub-project level or project-
element level to be appropriate. The joint MDB approach also seeks to identify the links between
adaptation activities and the project’s explicit intent to reduce vulnerability to climate change.
Thus, the volume of MDB-reported adaptation finance is an estimation of total project finance for
specific project activities that contribute to overall project outcomes in the process of adapting to
climate change.
It is important to note that the MDBs’ estimated climate finance may not express the full value of
project finance that contributes to climate resilience. For instance, the granular approach would
58 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
capture financing for improved drainage of a newly constructed road to withstand heavy rainfall or
storm surges that in turn contributes to the overall resilience of the road and the investment. The
granular approach does not capture the value of the entire project or investment that may increase
resilience due to specific adaptation activities within the project. In addition, some activities
without associated incremental costs, such as operational procedures to ensure business
continuity or the practice of siting assets outside the range of a future storm surge, may not be
tracked in quantitative terms.
MDB methodology and MDB-IDFC common principles
MDBs and the International Development Finance Club (IDFC) are fully committed to promoting
and supporting climate-resilient development as an essential part of the sustainability of their
investments. With this shared commitment, MDBs and the IDFC work together towards improved
definitions and understanding of the different approaches and principles for tracking climate
change adaptation finance.
As a result, in July 2015 these institutions agreed on the Common Principles for Climate Change
Adaptation Finance Tracking. The principles establish the parameters with which to identify and
estimate the volume of adaptation finance in MDB and IDFC operations. They also form the basis
for further joint work to increase the comparability of reported figures on climate adaptation
finance and to harmonise key concepts related to reporting guidelines and processes. MDBs and
the IDFC are currently developing additional metrics to identify and report on climate resilience in
their development operations.
Application of the adaptation finance tracking methodology
The MDB methodology on adaptation finance tracking consists of the following three key steps:
1. Setting out the climate change vulnerability context of the project.
2. Making an explicit statement of intent of the project to reduce climate change vulnerability.
3. Articulating a clear and direct link between specific project activities and the project’s objective to
reduce vulnerability to climate change.
The identification and estimation of adaptation finance is limited solely to those project activities
(that is, projects, project components, or elements or proportions of projects) that are clearly linked
to the climate change vulnerability context.
Step 1. Context of vulnerability to climate change
For a project to be considered as contributing to adaptation, the context of climate change
vulnerability must first be set out clearly using a robust evidence base. Project documents may
refer to existing analyses and reports or to original, bespoke assessments of climate change
vulnerability, such as those carried out as part of project preparation. Good practice in the use of
existing analyses or reports includes citing authoritative, preferably peer-reviewed sources, such as
academic journals, national communications to the UNFCCC, Nationally Determined Contributions
(NDCs), reports of the Intergovernmental Panel on Climate Change, or strategic programmes for
climate resilience.
Good practice in conducting original, bespoke analysis entails the use of information from trusted
sources, which document the vulnerability of communities, physical assets or ecosystems to
climate change as well as the use of recent climate trends including any departures from historic
means. These may be combined with climate change projections drawn from a range of climate
change models, with high and low greenhouse gas emission scenarios, to explore the full array of
projected outcomes and uncertainties. Climate projection uncertainties should be presented and
interpreted in a transparent way. The timescale of projected climate change impacts should match
the intended lifespan of the assets and systems being financed through the project (for example, a
time horizon of 2030, 2050, 2080, and so on).
ANNEX C: METHODOLOGIES AND DEFINITIONS |
59
Step 2. Statement of purpose or intent
Once a project’s context of vulnerability to climate change has been established, the project should
set out the explicit intention to address the context-specific and location-specific climate change
vulnerabilities in response to the project’s climate vulnerability assessment. This is an important
step to distinguish between a development project contributing to climate change adaptation and
a standard development project.
The methodology is flexible about the location and form of this statement of intent in the document,
as long as the MDB is able to record and track the rationale for each adaptation element linked to
the climate change vulnerability context described. MDB projects with adaptation finance usually
state — in final technical documents, documents for board approval, internal memos or other
associated project documents — the intention to reduce vulnerability.
Step 3. Clear and direct link between climate change vulnerability and project activities
In line with the principles of the overall MDB climate finance tracking methodology, adaptation
finance estimations consider only the finance allocated to specific project activities that are clearly
linked to the project’s climate change vulnerability context.
Where climate change adaptation activities are planned in projects that have additional objectives,
adaptation finance tracking takes into account the estimated incremental cost or investment
associated with such discrete project components — or elements of project design — that address
risks and vulnerabilities under conditions of current and future climate change, and compares
these with a project design that does not consider such conditions.
When it is not possible to estimate incremental cost or investment directly from project budgets —
for example, when using policy instruments or balance-sheet lending, equity investments or credit-
line lending through financial intermediaries — a proportion of the project cost or investment
corresponding to adaptation activities may be used to represent the incremental amount.
Table 1 in Annex B of the 2016 Joint Report on Multilateral Development Bank’s Climate Finance
23
provides a list of examples illustrating sector-specific and subsector-specific adaptation activities
in which MDB adaptation finance may be identified. The list is not meant to be exhaustive, nor is it
intended for application as a positive list. It is for illustrative purposes only. Any adaptation finance
that is identified needs to be substantiated through the application of the three-step process
described above.
For an illustration of how the MDB adaptation finance tracking methodology is applied to
development operations, see Table A.B.1.
Adaptation finance tracking among development finance institutions
A growing number of institutions and initiatives work on the methodologies for tracking climate
adaptation finance and make increasing efforts to harmonise these approaches. The MDB-
IDFC common principles result from such joint work. These institutions continue their efforts
for greater harmonisation, comparability and transparency of their reported climate finance. In
addition, the OECD, which designed and applies the OECD-DAC Rio Markers, recommends the MDB
methodology‘s three-step approach to tracking climate adaptation finance as a “best practice”.
The OECD’s efforts have resulted in improved guidance for tracking bilateral official development
assistance (ODA) targeting climate change adaptation.
In 2021, the MDBs commenced a review of the joint MDB methodology for tracking adaptation
finance. This review aims to take stock of recent developments in the field of adaptation finance,
MDBs’ efforts to support climate adaptation and resilience through a wide range of sectors beyond
23 www.ebrd.com/2016-joint-report-on-mdbs-climate-finance.pdf
60 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
traditional infrastructure sectors, and the increasing diversity of financial modalities that are used
to support adaptation and resilience. This review will complement ongoing efforts by MDBs to
enhance the robustness and transparency of climate finance tracking and support climate action,
in line with the objectives of the Paris Agreement.
Table A.B.1. Case study #1 of tracking adaptation finance in projects
Project focus Water and wastewater management
Sector Water and other urban infrastructure and services — Urban policy, institutional and capacity
development
Brief description
of project
The programmatic policy-based loan (PBL) aims to improve access to basic urban services by
accelerating a series of policy actions and reforms that will mainstream performance-linked
funding for urban service delivery. The programme reforms will establish and operationalise (i)
national and subnational policies, guidelines, and programmes for accelerated achievement of
universal water supply and improved sanitation service delivery with associated urban reforms;
(ii) policies and programmes for providing affordable housing to urban migrant and industrial
workers, working women, and the poor; and (iii) policies and guidelines for performance-based
fiscal transfers. Subprogram 1 will establish essential policies and guidelines at the national level.
Subprogram 2 will prepare and commence the specific reform actions and programme proposals
at provincial state and city levels following the set policies and guidelines under subprogram 1,
which will be enforced through performance-based grants.
Climate
vulnerability
context
Urban sector in the country is vulnerable to negative impacts of climate change with insufficient
infrastructure base and its sensitivity to change in precipitation and temperature. A climate
change risk assessment was undertaken during programme preparation and identified how basic
urban services are sensitive to a changing climate. The monsoon precipitation over the country
has declined over the last few decades and there has been a shift towards more frequent dry
spells. Basic urban service such as water supply is sensitive to these changes as availability of
water sources is affected by rainfalls while higher temperature could increase water demand. The
frequency of daily precipitation extremes has increased and is projected to further increase with
global warming, which will lead to more frequent and extreme floods and landslides damaging
wide range of urban infrastructure including water supply, wastewater management system and
housing.
Statement of
purpose or intent
to reduce climate
vulnerability
The programme, though PBL modality, will accelerate implementation of policy actions that are
crucial for structural urban reforms. The programme aims to provide basic infrastructure services
and a decent quality of life to people by building a clean and sustainable environment to tackle
the adverse impact of climate change. Several policy actions under the programme are aligned
with the government’s strategy to address climate change and contributes to climate adaptation
though enhancing efficient use of water, conservation of water resources, and drought and flood
risk management.
Project activities
linked to
reducing climate
vulnerability
Under subprogram 1, the national government approved a national urban water mission, under
which several policy actions incentivised local governments for reforms through provision of grants
that directly and indirectly contribute to building climate resilience such as:
• Reducing non-revenue water and reuse of treated wastewater to meet at least 20% of water
demand will reduce water extraction and contribute to conservation of water resources
including groundwater contributing to increased climate resilience
• Rejuvenating urban water bodies to augment fresh water supply, with the objectives of
developing green spaces to augment water conservation and amenity value, reducing flood
impacts, and maintaining a positive groundwater balance which would help in strengthening
climate resilience
• Bringing in public-private partnerships in water sector to encourage private investments
supporting adaptation elements
• Instituting a policy to promote sustainable building practices such as rainwater harvesting, and
adopting innovative and replicable technologies for green and climate-resilient construction
meeting diverse geo-climatic conditions
• Making fiscal transfers from national government to local governments partly conditional upon
achieving targets under national water mission
• Rolling out of operational guidelines essential to realise above objectives
• Capacity building for local governments in design of climate change and disaster resilient
infrastructure.
ANNEX C: METHODOLOGIES AND DEFINITIONS |
61
Project focus Water and wastewater management
Type of financial
instrument
Programmatic Approach and Policy-Based Loan, and Technical Assistance Grant
Estimation of
adaptation
finance
Subprogram 1 is $350 million financed by MDB. Climate adaptation finance is $75.69 million or
22% of the subprogram 1 cost.
Table A.B.2. Case study #2 of tracking adaptation finance in projects
Project focus
Institutional Strengthening of the National Development Bank
Sector Finance, Competitiveness & Innovation
Brief description
of project
This project aims to support the recovery of private sector exporters from the economic impacts
of the COVID-19 pandemic; enhance access to finance for firms in underserved segments and
lagging regions; and strengthen the institutional capacity of the country’s National Development
Bank.
Climate
vulnerability
context
The country is highly vulnerable to the impacts of climate change with climate projections
indicating hotter and drier conditions in the next few decades and an increased frequency and
intensity of extreme weather events including droughts, heat waves, and wildfires. In addition to
physical climate risks, the country is also vulnerable to transitional climate risks linked to changes
in regulations, and investor and consumer behaviour.
Statement of
purpose or intent
to reduce climate
vulnerability
Support for institutional capacity reforms will help integrate sustainability and climate resilience
considerations in the National Development Bank’s business operations.
Project activities
linked to
reducing climate
vulnerability
Capacity-building support will enable the National Development Bank to implement institutional
reforms and strengthen its resilience to climate change by (i) integrating climate risks and
vulnerabilities in procedures related to export financing; and (ii) developing integrated
environmental and social sustainability and climate resilience principles, policies, and procedures
that would systematically cover all business operations and decision making for all risk levels.
Type of financial
instrument
Investment Loan
Estimation of
adaptation
finance
The total financing for this project was $242 million and financed by the MDB. Adaptation finance
was estimated at $35 million (around 15% of the MDB’s project financing) to account for the
proportion of the project’s investments directly addressing climate change adaptation.
Table A.B.3. Case study #3 of tracking adaptation finance in projects
Project focus Post-disaster reconstruction and recovery, flood risk management
Sector Water resources and flood risk management, urban infrastructure, transport
Brief description
of project
In response to the urgent need of the government for post flood recovery, an emergency loan to the
government to support the recovery efforts was proposed. The scope of the proposed emergency
project is in line with the government’s Master Plan for post-disaster reconstruction and recovery.
The project aims to (1) support the post-disaster rehabilitation and recovery in three worst affected
municipalities, and (2) strengthen the capacity of the three municipalities in integrated flood risk
management and flood emergency response. As an emergency project, a framework approach is
adopted for overall project design while a list of project activities consistent with the framework is
proposed by the government based on the agreed sub-project selection criteria.
The total project cost is $1.399 billion, with MDB providing $1 billion.
62 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Project focus Post-disaster reconstruction and recovery, flood risk management
Climate
vulnerability
context
The province being targeted by the project spans four large river basins. With its unique
geographical and hydrometeorological characteristics, it is one of the provinces most vulnerable
to flood and drought risks in the client country. With climate change, heavy rainfall events have
become more frequent and intense. Of the 66 years from 1950 to 2015, flooding occurred in 32
years, with a less than three-year recurrence interval, and in each of these years the flooded area
in the province was greater than 667 000 hectares. In 2021, heavy rainstorms struck the province,
with the hourly maximum rainfall of 201.9 mm breaking historic records of precipitation in the land
territory of the client country. The flood led to significant losses and damage: lives of more than
300 people lost; over 1 million hectares of cultivated lands flooded; houses of 30 000 families
collapsed; nearly 1.5 million people displaced or evacuated; and severe damages to infrastructure
and other public assets including urban and rural roads, bridges, water utilities, drainage systems,
dykes, and dams. The direct economic losses were initially estimated at around $17.5 billion.
Statement of
purpose or intent
to reduce climate
vulnerability
Fully recognising that damaging flood events are to become more frequent and more intense
under a changing climate, the client country and the MDB concluded that it is imperative to build
in climate resilience in proposed investments and disaster risk reduction activities, and so too in
this emergency project. Therefore, this project will be implemented in stages to achieve two goals:
1) to meet the urgent need for rehabilitation and reconstruction of the essential infrastructure
required for quickly restoring social and economic activities; 2) to achieve the medium- and long-
term sustainability and climate resilience of sub-projects.
Project activities
linked to
reducing climate
vulnerability
Mainstreaming climate adaptation in the project design is one of the key design objectives. The
project interventions will include not only “build back” activities but also “build better” measures
with the objective to increase climate resilience and provide for long-term sustainability. The MDB
will support the implementing entities to take climate adaptation measures into feasibility studies,
technical designs and constructions. Specific adaptation measures will include application of
higher flood protection standards, nature-based solutions and combination of grey and green
infrastructure, climate-resilient construction materials, as well as smart river management
system, integrated flood risk management system and enhanced capacity for emergency
response.
Type of financial
instrument
(Emergency) Investment loan
Estimation of
adaptation
finance
The project consists of three sub-projects in three cities, with the following components with MDB
finance:
1. Integrated river management ($317.6 million);
2. Smart water and emergency response system ($13.1 million);
3. Emergency response capacity enhancement ($14.2 million);
4. River and river canal rehabilitation ($162.4 million);
5. Urban drainage system and roads improvement ($34.9 million);
6. Urban roads and canal rehabilitation ($103.9 million);
7. Rural roads and bridge rehabilitation ($251.7 million);
8. Rehabilitation of national and provincial highways ($66 million);
9. Public transport infrastructure rehabilitation and repurchase of EV buses ($28.5 million)
10. (Institutional) capacity improvement and consultancy services ($7.7 million).
No adaptation finance is reported under Component 9) which primarily contributes to mitigation
objective or component 10) which covers a broad range of issues.
A combination of proportional and incremental costing approaches was applied to estimate
adaptation finance under the other eight components of this project.
For Components 1) and 2), 50% of the total allocated cost was considered as adaptation finance as
they aim to enhance flood resilience as well as other environmental and development objectives;
Components 3) and 4) are designed to improve flood emergency response and therefore 100% of
the allocated cost is reported as adaptation finance; Based on literature, an incremental cost of
40% was used to estimate the adaptation finance under component 5) while an incremental cost
of 10% was used to estimate the adaptation finance under Components 6), 7) and 8).
The total adaptation finance under the project is therefore $391 million, representing about 39%
of the total MDB finance for the project.
ANNEX C: METHODOLOGIES AND DEFINITIONS |
63
Table A.B.4. Case study #4 of tracking adaptation finance in projects
Project focus Flood Impact Mitigation Project in Coastal Cities
Sector Coastal and riverine infrastructure
Brief description
of project
• Flood mitigation project in coastal urban area with a focus on addressing recurrent flooding
and surge in the city and its suburbs. It addresses flood and coastal surge risks through the
development of adapted engineering infrastructure solutions across the shorelines and
through critical urban infrastructure to be built under the project. In addition, the project aims
to develop social interventions and safety net including low-cost coastal housing, access to
potable water and short-term MSMEs grant for the vulnerable and flood exposed individuals in
the community.
• Strategically, the project falls under the implementation of the country’s National Climate
Change Adaptation Program of Action (NAPA) as it supports reduction of flood related risks and
strengthens urban resilience to climate change.
Climate
vulnerability
context
• Climate risk assessment shows that project location is highly vulnerable to natural disasters
including excessive flooding and frequent surge from the ocean. Natural disasters have
increased in intensity in recent years and climate change is expected to further increase the
frequency of extreme weather patterns and natural hazards in the country thereby exposing
urban dwellers especially the urban poor to increasing environmental stress and poverty.
• In the past three decades, floods have displaced and affected over 600 000 people per
year. This has caused significant damage to public infrastructure, equipment, human health,
livelihoods and assets, and private property along with economic losses especially of the most
vulnerable population women and children. It is estimated that by 2030, more than a million
inhabitants of the project location could be displaced and impacted by coastal erosion and
flooding.
Statement of
purpose or intent
to reduce climate
vulnerability
• The project objective is to attenuate the impact of recurrent floods through adapted engineering
infrastructure solutions and integrated urban development approach. It focuses on physical
restructuring of flood-prone zones, development of coastal lowlands, provision of essential
social services, and construction of resilient storm water drainage infrastructure in coastal
urban communities in beneficiary country.
Project activities
linked to
reducing climate
vulnerability
• Adapted Engineering Infrastructure Civil Works Component: This component has sub-
components including (i) drainage of main area through masonry and slabbed main sewers
consisting of built-in drainage mat, built-in metal drip edge, and built-in termination bar;
(ii) masonry drainage channels for all secondary roads developed for evacuation in flood
emergencies; (iii) construction of all weathered dykes and multi-layered secondary roads
(coated with bitumen). The flood drainage network specification of 25% above BAU was
developed and a layered network of 10 cm (CBR>60) with a 15 cm (CBR >30) foundation layer
was proposed.
• Social Infrastructure and Displacement Support Component: This component has sub-
components including (i) replacement of contaminated water with potable water and sewerage
system for entire community; (ii) building of durable and flood resistant electrification network
and (iii) affordable low-cost resilient housing for flood displaced victims. For the water network,
flexible all-weather PVC with dimension ranging from 160, 250, 315, 400 and 500 mm were
proposed.
Type of financial
instrument
Investment Loan
Estimation of
adaptation
finance
The total project cost is $57.9 million.
The proportional approach was applied.
For the adapted engineering infrastructure civil works component, the adaptation finance of 100%
of this component (amounting to $13.75 million) was recorded due to the direct link of these sub-
components to mitigating flood and sea surge risks.
For the social infrastructure and displacement support component, the adaptation finance of 5%
of this component (amounting to $1.776 billion) was recorded due to the humanitarian nature of
most of the sub-components financed and less related to climate adaptation.
Total climate adaptation finance: $15.5 million
Share of climate finance: 26.8%
64 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
ANNEX C.3 JOINT METHODOLOGY FOR TRACKING CLIMATE MITIGATION FINANCE
In order for MDB finance to qualify as climate mitigation finance, the MDBs apply the Common
Principles for Climate Mitigation Finance Tracking
24
to validate their investment as mitigation
finance. These common principles have been designed for use in ex-ante assessments and focus
on the type of activity financed, and not on its purpose or the origin of the financial resources. The
list of eligible activities is presented by sector. Policy actions, technical assistance and programmes
in support of the eligible activities are also eligible, provided that the link to eligible activities is
clear or sufficiently demonstrated
25
. The results of the assessments are applied for reporting of
the climate change mitigation finance in the Joint Report on the Multilateral Development Banks’
Climate Finance.
The common principles recognise that a substantial contribution to climate change mitigation can
involve the following three categories of climate change mitigation activities:
i. Negative- or very-low-emission activities, which result in negative, zero or very low GHG
emissions and are fully consistent with the long-term temperature goal of the Paris Agreement,
such as carbon sequestration in land use or some forms of renewable energy.
ii. Transitional activities, which are still part of systems emitting material greenhouse gases
(GHGs) but are important for and contribute to the transition towards a climate-neutral
economy, such as energy efficiency improvement in manufacturing that directly or indirectly
uses fossil fuels.
iii. Enabling activities, which are instrumental in enabling other activities to make a substantial
contribution to climate change mitigation, such as manufacture of very-low- emission
technologies.
On the 18 October 2021 the MDBs and IDFC published a new version of the common principles.
This new version of the common principles, including the list of eligible activities, was developed
over a period of two years, taking particularly the following two aspects into account:
i. Consideration of new mitigation activities that are required in order to achieve the structural
changes in the economy pointed out by the IPCC as necessary to achieve the goals of the Paris
Agreement.
ii. Identification of activities that, despite reducing GHG emissions in the short term, risk a long-
term lock-in of emissive technologies, thereby undermining the long-term temperature goal of
the Paris Agreement. Such activities cannot be considered as climate mitigation finance.
The MDBs agreed to operationalise the new version of the common principles starting in 2021 over
a period of two years, during which time the list of eligible activities will be used as an exhaustive list.
At the end of the two-year period, the MDBs and the IDFC will adjust the list, if required, based on
their respective experience. The aim at the end of this two-year operationalisation period is to have a
common list of eligible activities, considered an exhaustive list by both the MDBs and the IDFC.
A major review of the methodology is planned within five years of the publication of the new version
of the common principles, whilst minor amendments may be made on a more regular basis. These
reviews will account for technology developments that may enable deeper decarbonisation of
economic activities. Thus, the current list includes some activities that may not be eligible in the
future as the transition to an economy with net-zero GHG emissions progresses.
Please see full list of the common principles and list of eligible activities
https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf
24 https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf
25 Each eligible activity is understood to include policy actions, technical assistance and programmes carried out in its support, which are
not listed separately. Only policy actions, technical assistance and programmes that cannot be directly linked to eligible activities described
elsewhere are listed separately.
ANNEX C: METHODOLOGIES AND DEFINITIONS |
65
Table C.3.1. Case study #1 of tracking mitigation finance in projects
Project focus Energy and resource efficiency investments
Sector Electrical Equipment, Appliance & Component Manufacturing
Brief description
of project
The proceeds of the loan will be used by the company to support the investment programme in its
manufacturing facilities in the target country during 2021-2024 period. The loan consists of two
facilities a) The Green Facility and ii) The investment facility.
The Green Facility will finance the company’s climate investments under its Green Financing
Framework (“GFF”) across its production facilities in the country. Investment Facility will finance
(i) modernisation investments in Refrigerator Plant, (ii) new production line in Refrigerator
Plant, which will be built using the state-of-the-art technology taking into the best practices and
developed novel production technologies by the company, (iii) modernisation, health and safety,
and various other investments in Cooking Appliances Plant.
The allocation of the proceeds under the Green Facility will be reported by the company annually,
with ex-post external verification of climate use of proceeds in line with LMA GLP. The use of
proceeds under the investment facility will be controlled at the project implementation stage via
annual monitoring reports and site visits if necessary.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
Manufacturing — Support for low-carbon Development
9. Projects that support production of components, equipment
or infrastructure dedicated exclusively to utilisation in the renewable energy, energy efficiency
improvement, or other
low-carbon technologies.
Type of financial
instrument
Investment loan
Calculation of
mitigation finance,
including basis
(for example,
eligible
components)
The Bank committed €150 million, of which 48% is conservatively estimated as Mitigation finance.
€72 million of mitigation finance was expected to deliver significant climate change mitigation
benefits as resulting in a reduction of greenhouse gas emissions at the level of company’s
operations and product end-use level. The Bank’s financing will help the company achieve its 2030
climate targets formulated in line with the Science-Based Targets Initiative (“SBTi”). Investments
that were considered as mitigation activities are (1) Renewable Energy Systems, (2) investments
resulting from Scope 1-2 emission reductions in line with the company’s SBTI target of 30% by
2030 (from a 2018 base year), (3) investments resulting from Scope 3 emission reductions —
from the use of sold products — in line with SBTI target of 15% over the same timeframe, (4)
building insulation, (5) energy management.
Type of mitigation
finance (own
resources,
co-finance)
MDB own account
66 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table C.3.2. Case study #2 of tracking mitigation finance in projects
Project focus RDI in renewable energy and low-carbon technologies
Sector Research, development and innovation
Brief description
of project
The project covers research, development and innovation (RDI) in renewable energy and
low-carbon technologies.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
Research, development and innovation — Research on, or development of, renewable
energy, energy efficiency improvement, low-carbon technologies, or other technologies
instrumental to achieving full decarbonisation.
Type of financial
instrument
Investment loan
Calculation of
mitigation finance,
including basis
(for example,
eligible
components)
The project covers RDI in renewable technologies, including onshore and offshore wind
farms and solar, targeting:
• The improved performance and efficiency of renewable energy production assets,
enhancing the competitiveness and thus the deployment of these technologies;
• The extension of economic life and up-time of existing renewable energy assets, which
contributes directly to a larger share of renewable energy in the overall energy mix;
• The implementation of new technologies at the demonstration level, hence accelerating
the faster adoption of renewable energies;
• The development of more cost efficient and autonomous concentrated solar panel (CSP)
technology to be used during construction works in remote locations;
• The deployment of remote operation automation, digital twins and smart sensoring to
increase efficiency and performance of renewable energies installations operation and
maintenance;
• The deployment of augmented and virtual reality solutions during engineering,
construction, operation and maintenance of renewable energies assets to maximise
zero based field operations;
• The deployment of renewable material/feedstock traceability, such as biomass
blockchain traceability.
Moreover, the RDI programme aims at exploiting the development of CO
2
capture
technology and recovery system for the production of carbonates as raw material for
construction.
The project is therefore fully considered climate mitigation finance.
Type of mitigation
finance
(own resources,
co-finance)
MDB own account
ANNEX C: METHODOLOGIES AND DEFINITIONS |
67
Table C.3.3. Case study #3 of tracking mitigation finance in projects
Project focus
Integration of PV, batteries for energy storage and an electrolyser for the production of
green hydrogen
Sector Energy and manufacturing
Brief description
of project
Installation and operation of a medium-scale photovoltaic plant (nominal capacity 100 MWp),
including a battery storage system, directly connected to a large-scale electrolyser for hydrogen
production (20 MW), using partially the renewable (PV) energy capacity installed nearby. The
hydrogen will be supplied to the fertiliser industry, situated nearby the PV plant, replacing hydrogen
produced from natural gas.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
• Energy — Renewable energy generation — 1. Generation of renewable energy with low lifecycle
GHG emissions to supply electricity, heating, mechanical energy or cooling.
• Energy — Energy storage and network stability — 9. Energy storage or measures to improve
network stability that increase consumption of very-low-carbon energy.
• Manufacturing — Low-carbon fuels — 10. Production or use of low-carbon hydrogen.
Type of financial
instrument
Investment loan
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
The project covers the production of renewable electricity, trough PV panels, its storage (excess)
in batteries and the production of green hydrogen (using renewable electricity self-produced and
low-carbon electricity from the grid). The project is therefore fully considered climate mitigation
finance.
Type of mitigation
finance (own
resources, co-
finance)
MDB own account
68 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table C.3.4. Case study #4 of tracking mitigation finance in projects
Project focus Rural development
Sector Natural Resources and Rural Development
Brief description
of project
AAA County is rural and was one of the remaining national poverty counties in the country in
2020. The county’s institutional capacity for environmental planning and management is weak.
The country faces various restrictions on development activities mainly because of concerns over
degradation of quality and quantity of water in the BBB Reservoir. AAA Country is also part of the
CCC River watershed in the DDD River basin, which has been designated a national key ecological
function zone by the government; it is geologically and ecologically fragile because of extreme
soil erosion and rocky desertification. The frequency and intensity of devastating floods have
increased from 1990 to 2020 as a result of ecological degradation and climate change. Most of
the county’s rural population lacks basic water and sanitation facilities, which negatively impacts
public health and the environment.
Poverty, declining water quality, and ecosystem degradation are the three most prominent
development challenges in AAA County. Considering the complex nexus among these three
key problems in the county and their potential threats to water quality and quantity in the BBB
Reservoir, the AAA County Government (ACG) urgently needs to adopt a holistic approach
to development planning that leverages benefits from individual sector interventions and
develops synergies in support of broader development. To do so, ACG needs to improve its water
management planning and strategy development as well as enhance institutional coordination
and technical capacity for more effective implementation.
The project will promote environmental improvements and green development in ecologically
sensitive rural areas by (i) building the capacity of the ACG in environmental planning and
management; (ii) promoting soil and water conservation through the use of high-level technology,
including remote sensing, smart drip irrigation, and peripheral rainfall runoff harvesting; and (iii)
facilitate recovery in the project area from the economic impacts of COVID-19 through inclusive
rural economic development.
Classification:
(1) mitigation and
(2) adaptation
finance
Adaptation and Mitigation Finance.
(1) Mitigation
1. Energy; 1.1. Renewable energy generation.
4. Agriculture, forestry, land use and fisheries; 4.6. Forestry: GHG-emission reduction
and carbon sequestration.
6. Solid waste management; 6.7. Landfill gas capture, abatement and utilisation.
(2) Adaptation:
Coastal and riverine infrastructure.
Energy, transport and other built environment and infrastructure.
Institutional capacity support or technical assistance.
Other agricultural and ecological resources.
Calculation of
climate finance,
including the basis
(for example,
eligible
components)
Mitigation ($ million)
$8.26
Adaptation ($ million)
$10.03
The cost of each of the climate change activity were estimated and counted as climate finance.
Mitigation activities in the project include:
• Use of solar power in smart irrigation system and solar insecticidal lamp;
• Ecological restoration and ecological construction of forest areas of around 827 hectares;
• Disposal of municipal organic waste such as kitchen waste and municipal sludge. Disposal
facilities to be purchased could handle 30 tons per day of kitchen waste, and 70 tons per day
of municipal sludge.
While adaptation activities include: i) installation of hydrometeorological and water quality monitor
devices; ii) peripheral rainfall harvest facilities; iii) intelligent irrigation systems, and iv) increase in
embankment height, among others.
Type of financial
instrument
Investment loan
Type of finance
(own account,
co-finance)
MDB own account
Counterpart
ANNEX C: METHODOLOGIES AND DEFINITIONS |
69
Table C.3.5. Case study #5 of tracking mitigation finance in projects
Project focus Data Center Development Fund
Sector Information and Communications Technology (ICT) and Digital Technologies
Brief description
of project
Many low- and mid-income economies lack their own domestic data infrastructure, and the
disparities in data centre penetration among countries with different income levels are wide.
This reflects shortcomings in the investment climate where major global investors have largely
shunned investing in emerging and frontier economies.
The MDB has committed $150 million to invest in the development of data centres that mostly
serve emerging markets through the Fund, a closed-end private equity vehicle, as investments
are becoming more essential nowadays with the acceleration of 5G technology and other high-
speed/supercomputing digital infrastructure due to the pandemic.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
(1) Information and Communications Technology (ICT) and Digital Technologies
(2) Category: Energy efficiency and renewable energy
(3) Eligible activity: Greenfield data centres that meet best international practices for energy
efficiency or that are supplied largely by on-site renewable energy generation
Type of financial
instrument
Equity
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
The MDB has committed $150 million to this project and counted 80% of the financing as
mitigation finance, by setting a target together with the client that at least 80% of the data centres
(by cost) will meet the eligible activities as per the Joint MDB methodology on Climate Mitigation
Finance Tracking, namely:
(a) Energy efficiency performance of the data centres following internationally recognised best
practice guidelines, or substantially better than market standards or benchmarks;
(b) Data centre buildings following green building certification criteria provided by the
methodology; and
(c) Where applicable, on-site renewable energy generation will be explored to supply the power
needs.
Type of mitigation
finance (own
resources,
co-finance)
MDB own account
70 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table C.3.6. Case study #6 of tracking mitigation finance in projects
Project focus Improving education outcomes for girls by reducing learning disruptions
Sector Education
Brief description
of project
This project aims to improve education for girls in the context of a post-conflict nation which is
facing the harsh impacts of the COVID-19 pandemic, and the subsequent compounded impacts
on human development outcomes, especially for women and girls. By addressing the key issues
of social barriers to women’s education, learning poverty in terms of lack of resources and
schools, and gender disparities, this project aims to incorporate climate-resilient measures into
a multisectoral approach to improve human capital outcomes for young girls who are proven to
be more vulnerable to climate risks in the region. It will minimise disruptions to girls’ educations
by financing access to health services (such as family planning and nutrition), infrastructure
investments, and the provision of scholarships.
Classification
(as per COMMON
PRINCIPLES
FORCLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
Mitigation finance eligible under the following activities:
Activity 9.1:
• Sector (Table 9): Buildings, public installations and end-use energy efficiency.
• Category: Energy efficiency, on-site renewable energy, CO
2
e emission reduction, and carbon
sinks in buildings.
• Eligible Activity (Activity 9.1): Measures that reduce net energy consumption, resource
consumption or CO
2
e emissions, or increase plant-based carbon sinks in greenfield and
brownfield buildings and associated grounds.
Activity 12.13:
• Sector (Table 12): Cross-Sectoral Activities.
• Category: Capacity building and information dissemination.
• Eligible Activity (Activity 12.13): Education, training, capacity building or awareness-raising
focused on climate change mitigation.
Project’s Eligible Activities: Energy efficient design of schooling spaces, including the installation of
solar panels, content on GHG emissions in the school curriculum, life skills for the green economy,
use of green cookstoves, and incorporating content on climate change mitigation in teacher/
manager training.
Type of financial
instrument
Investment loan
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
The total financing of this project was $250 million, of which mitigation financing accounted for
around 7.8% of the total financing. Mitigation activities have been embedded within the approach
to improve learning outcomes by:
• Including content on GHG emissions in the student curriculum (for example life skills for the
green economy, promoting the use of green cookstoves, and promoting plantation drives as
part of the life skills training).
• Training for teachers and managers of the schools.
• Raising awareness on climate action as part of the core element of the schooling programme.
Infrastructure investments and improvements also ensure the design with energy efficiency
principles, installation of solar panels, and energy audits.
Type of mitigation
finance
(own resources,
co-finance)
MDB own account
ANNEX C: METHODOLOGIES AND DEFINITIONS |
71
Table C.3.7. Case study #7 of tracking mitigation finance in projects
Project focus
Digital Connectivity in Schools to Accelerate Education and Learning during COVID-19
Pandemic
Sector Information and Communication Technology (ICT)
Brief description
of project
The project aims to help restore and restart the country’s educational system and connect
communities to critical information and opportunities in the digital economy, and to accelerate
post-COVID learning. It will accelerate connectivity and online learning and service initiatives for
children and their communities and drive economic stimulus. ICT-based communication offers
immense potential to support the delivery of information including educational and climate
information.
This project focuses on connecting schools to the internet at community level. The components
financed by the project include ICT infrastructure, such as hardware, connectivity and power
sources for connection nodes, solar panels, batteries, central server, community monitoring
centres and data collection stations.
The project activities support the cost-effective connection of approximately 11 200 schools and
also equip a further 3 million people in local communities with ICT access, educational tools and
related skills.
Specifically, the project supports the deployment of solar energy as a source of power in rural
communities to contribute to reducing the carbon footprint of the project and the community at
large. In addition, it has indirect emission reduction benefits by reducing the emissions that would
otherwise have been generated through daily commuting and transportation of students and
pupils to educational centres across the project areas (although this was not estimated and as
such not counted). Also, the project responds to both development and humanitarian challenges
using clean energy options to reach remote and previously unreached communities in a timely
manner.
This project provides an example of the intersection between ICT, COVID-19 recovery, and climate-
smart development.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12 of
CPs)
(2) Category
(3) Eligible activity
(1) Information and communications technology (ICT) and digital technologies.
(2) This project is eligible under the category of energy efficiency improvement, renewable energy
deployment, and/or CO
2
e-emission reduction in existing data centres.
(3) Solar energy generation in all ICT centres and hubs, solar electricity utilised in the built data
and internet hubs.
Other potential climate mitigation finance opportunities not considered by the project include
the efficiency of the ICT equipment to be procured for the project and indirect emission reduction
benefits from emissions that would otherwise have been generated through daily commuting and
transportation of students and pupils to educational centres across the project communities.
Based on the principle of conservativeness, these aspects were excluded from the estimated
climate finance.
Type of financial
instrument
Investment loan.
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
Total project cost: $6.9 million.
Renewable energy component: $1.5 million.
Total share of climate finance: 21.7% of total project cost ($1.5 million).
Type of mitigation
finance
(own resources,
co-finance)
MDB own account
72 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
ANNEX C.4 FINANCE THAT BENEFITS BOTH ADAPTATION AND MITIGATION
The MDBs identify some components and/or sub-components, or elements or proportions of
projects, which help to reduce GHG emissions while also reducing climate vulnerability, thereby
delivering dual benefits of mitigation and adaptation. Where the same project, sub-project or
project element contributes to both mitigation and adaptation, the MDB’s internal processes will
determine which proportions to count as mitigation or as adaptation so that the actual financing will
not be double-counted. Some MDBs report projects where the same components or elements or
proportions contribute to both mitigation and adaptation as a separate category (see Table C.4.1).
The MDBs work continuously to improve work on the best reporting method for such projects.
For 2021, the AIIB, EBRD and IDBG have tracked dual-benefit figures separately, while other MDBs
have split the dual-benefit finance between adaptation and mitigation, according to their internal
systems. There is no double counting in either approach. Table C.4.2 provides greater detail on the
instrument types used in adaptation, mitigation and dual-benefit finance.
Table C.4.1. MDB adaptation, mitigation and dual-benefit climate finance (in $ million)
MDB Adaptation finance Mitigation finance Dual-benefit finance Total
AIIB 583 2 184 68 2 835
EBRD 309 6 039 27 6 375
IDBG 1 614 3 275 668 5 557
Total 2 506 11 499 762
14 767
Note: Numbers may not add up due to rounding.
Table C.4.2. MDB adaptation, mitigation and dual-benefit climate finance, by instrument type (in $ million)
Instrument type Adaptation finance Mitigation finance Dual benefit Total
Investment loan 12 141 51 054 727 63 902
Policy-based financing 1 520 2 517 0 4 037
Grant 2 640 1 632 14 4 286
Guarantee 145 2 250 0 2 395
Equity 38 1 245 0 1 283
Line of credit 69 1 380 0 1 449
Results-based financing 1 181 935 1 2 117
Other 1 044 1 182 21 2 247
Total 18 759 63 090 762
81 717
Note: Numbers may not add up due to rounding.
ANNEX C: METHODOLOGIES AND DEFINITIONS |
73
Table C.4.3. Case study #1 of tracking a dual-benefit project
Project focus Improving healthcare/healthcare facilities/buildings
Brief description
of project
The project aims to support the health system of the beneficiary country to meet the health
needs of the population, to: (i) integrate primary and secondary care services; (ii) improve access,
coverage and quality of community, ambulatory, and hospital services through a person and
community-centred model of care; and (iii) increase health services efficiency. Some components
of this project include building and renovating of care facilities including components of resiliency
and meeting green building certification criteria.
Classification for
dual benefit:
(1) mitigation and
(2) adaptation
finance
(1) mitigation finance (positive list of eligible activities):
• Table 1: Buildings (Public Installations and End-Use Energy Efficiency, Energy efficiency,
renewable energy, CO
2
e-emission reduction, and carbon sinks in green buildings, (eligible
activities 2 and 3)).
(2) adaptation finance (Climate vulnerability context, statement of purpose or intent to reduce
climate vulnerability, project activities linked to reducing climate vulnerability).
The beneficiary country is a small island that faces high-risk for natural disasters exacerbated by
climate change. This country is vulnerable to high sea levels, tropical and extratropical cyclones,
increasing air and sea surface temperatures, and changing rainfall patterns. This has severely
affected the infrastructure, equipment, medical supplies and electrical and water supply. In
previous years, hurricanes have damaged all three public hospitals in the island, mainly roof
damage, and the corporate building of the Ministry of Health have also suffered from floods. One of
the components of this projects aims to enhance the capacity for provision of primary care through
creating a stronger preventive maintenance system for medical infrastructure and equipment.
The upgrades of the infrastructure will include disaster risk and climate change adaptation and
mitigation actions to increase resilience. The adaptations comprise energy and water efficiency
standards, and a disaster and climate change resilient design for several healthcare facilities.
Calculation of
(1) mitigation and
(2) adaptation
finance
The Climate Finance Contribution estimation considers that all the clinics intervened will have
basic Level 1 EDGE certification considerations as well. With this, the estimation considers that
investments in construction, architecture and supervision can be considered as a mitigation
and adaptation contribution. The components of the project related to the construction and
rehabilitation of the healthcare clinics is therefore considered dual finance. This component is
equal to $17.787 billion which represents 44% towards climate finance.
Type of financial
instrument
Investment Loan
Type of finance MDB own account
Table C.4.4. Case study #2 of tracking a dual-benefit project
Project focus
Green Small and medium-sized enterprises
Sector: Industrial, Commercial and Agribusiness
Brief description
of project
Senior unsecured loan in favour of National Bank. The National Bank will on-lend the funds for
investments in climate change mitigation and adaptation technologies and services. The facility
will be accompanied by a comprehensive technical assistance to support implementation and
verification and expected to support incorporating climate-related considerations in National
Bank’s corporate governance framework.
Classification:
(1) mitigation and
(2) adaptation
finance
Mitigation
3. Manufacturing — Energy Efficiency
1. Brownfield industrial energy efficiency improvement
Adaptation
Crop and Food production — Primary agriculture and food production
74 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Project focus
Green Small and medium-sized enterprises
Sector: Industrial, Commercial and Agribusiness
Calculation of
climate finance,
including the
basis (for
example, eligible
components)
The Bank provided a senior unsecured loan to the National Bank in the amount of up to
$100 million.
Adaptation: $10 million accounted proportionally, considering the country’s extremely water
intensive power systems in a context of increasing water stress, this investment in a near-zero
water consuming power generation technology aims to reduce the baseline water intensity of the
country’s power system. The project will additionally tackle water consumption in the agribusiness
sector through the financing of drip irrigation systems to replace traditional floor irrigation
techniques. Amount of expected water savings informed the appropriate proportion of the eligible
adaptation finance attribution.
Mitigation: $90 million accounted based on 80% of the investments is for energy efficiency
and 20% for Renewable Energy technologies. Potential energy efficiency investments include
process machinery replacements, HVAC, industrial furnace/boiler, insulation technologies. The
programme supports the implementation of energy improvements with the help of Best Available
Technologies (“Green Technology Selector”) that are locally available in the market where High-
performing equipment and materials are identified, pre-assessed (for their performance) and will
be suggested for various types of green investment.
Type of financial
instrument
Intermediary Finance
Type of finance
(own account, co-
finance)
MDB own account
ANNEX C.5 TYPES OF INSTRUMENTS
The types of financial instrument containing climate finance as reported for 2021 include the
following:
a) Advisory services: MDB advisory services include advising national and local governments
as well as private sector players on a variety of topics, for instance how to improve their
investment climate and strengthen basic infrastructure. The MDB tracks and reports the costs
of managing advisory programmes, which may consist of staff time, studies, and training with
clients. Similar to investments, some programmes are 100% climate-related and some have a
climate component tracked in the overall programme budget.
b) 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.
c) Grants: Transfers made in cash, goods or services for which no repayment is required. Grants
are provided for investment support, policy-based support and/or technical assistance and
advice.
d) Bond: A type of bond, the issuance of which is done by a client and supported by an MDB,
where the proceeds are applied exclusively to financing or refinancing, in part or in full, new
and/or existing climate projects.
Only the percentage of proceeds that are used for activities included in the joint MDB
methodology for tracking climate finance count as climate finance.
e) Guarantees: Guarantees are instruments provided by an MDB to cover commercial and non-
commercial risk.
Guarantees support private sector investments, commercial borrowing by sovereign or state-
owned enterprises, and/or commercial borrowing by the sovereign for budget financing and
to support reform programmes. Guarantees are extended for eligible projects that enable
financing partners to transfer certain risks that they cannot easily absorb or manage on their
own. Guarantees cover equity and a variety of debt a wide variety of debt instruments and
support financial sector projects (including those of capital market investments and trade
ANNEX C: METHODOLOGIES AND DEFINITIONS |
75
financiers and non-financial-sector business activities corresponding to activities across
sectors).
f) Investment loans: Loans are transfers for which repayment is required.
Investment loans can be used for any development activity that has the overall objective of
promoting sustainable social and/or economic development, in line with the MDBs’ mandates.
Proceeds used for activities included in the joint MDB methodology for tracking climate finance
count as climate finance.
Refinancing: Refinancing is the replacement of an existing debt obligation with another debt
obligation under different terms.
Refinancing can be classified as climate finance subject to the following terms:
• Refinancing of assets that have reached financial closure for the entire term of the project
or that have passed the break-even point, provided that the client commits to originating
new climate deals for that amount within the next 24 months.
• Refinancing of assets where financial closure has not yet taken place, or the project has
not yet been fully constructed and is not yet operational.
• Bringing in additional long-term funds to replace short-term bridge loans or strengthening
the financial terms of the climate-related asset through long-term loans with better terms
than those of previous loans (for example, they correct a mismatch of maturity, adjust the
costs of asset construction, reduce exchange rate impact, replace expensive debt, and so
on).
• Refinancing climate finance projects that have already been constructed or are already
operational but have not passed the break-even point (for example, recently built solar
projects). The break-even conditions are confirmed by the investment team.
Working capital: Working capital is finance provided for operational expenditures.
Working capital is considered to be climate finance if leads to, enables or supports the
implementation and operation of activities included in the joint MDB methodology for tracking
climate finance.
g) 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. Climate finance is the proportion of
the credit line that is committed to activities defined as eligible in the MDBs’ climate finance
tracking methodologies.
h) Policy-based financing (PBF): Financing for a public borrower that helps the borrower to
address actual or anticipated requirements for development finance of domestic or external
origins.
Policy-based financing supports a programme of policy and institutional actions for a particular
theme or sector of national policy. While it does not use the cost estimation approach for
each policy action, disbursements of PBF are conditional on the borrower fulfilling their policy
commitments in the lending agreement.
The proportion of this public financing that is reported as climate finance is the same as the
proportion of the climate-related “prior actions” agreed in order to allow the policy-based
financing to proceed. For example, if one in three prior actions are climate-related, one-third of
the resulting policy-based financing would be counted as climate finance.
i) Results-based financing (RBF): Results-based financing directly links the disbursement of
funds to measurable results in a government-owned programme.
RBF aims to increase accountability and incentives for delivering and sustaining results, improve
the effectiveness and efficiency of government-owned sector programmes, promote institutional
development and enhance the effectiveness of development. Proceeds used for activities
included in the joint MDB methodology for tracking climate finance count as climate finance.
76 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
Table C.5.1. Case study #1: types of instruments
Project focus Low-carbon manufacturing
Sector Manufacturing
Brief description
of project
The company is improving its production process to reduce its carbon footprint in terms of tCO
2
e/t
produced. A bond linked to performance on GHG reduction was issued.
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
Table 3: Manufacturing.
Category: Energy efficiency.
Eligible activity: Brownfield industrial energy efficiency improvement.
Type of financial
instrument
Sustainability linked Bond
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
The Climate finance of the project was estimated according to the use of proceeds of the
transaction. In this case the applicable components are: i) efficient machinery acquisition, ii)
research in efficient machinery and efficient agricultural production, and iii) circular economy
practices.
Eligible CF categories:
1. Energy and resource efficiency: Highly efficient or low-carbon greenfield manufacturing
facilities or greenfield supplementary equipment or production lines at an existing
manufacturing facility.
2. Research, development, and innovation: Research on or development of renewable energy,
energy efficiency improvement, low-carbon technologies, or other technologies instrumental
to achieving full decarbonisation.
3. Energy and resource-use efficiency: An activity that enables a reduction in energy or material
use across a supply chain (upstream or downstream) through energy efficiency or resource-
use efficiency improvements in the existing supply chain, through a shift to a less carbon-
intensive supply chain, or by implementing circular economy systems.
In total the transaction was identified as 80% climate finance.
Type of mitigation
finance
(own resources,
co-finance)
MDB own account + co-finance
Table C.5.2. Case study #2: types of instruments
Project focus Strengthening the national health system for public health preparedness for COVID-19
Sector Health
Brief description
of project
This project aims to strengthen the national immunisation and health service delivery system of
a highly climate vulnerable country to respond to the COVID-19 pandemic through the effective
procurement and distribution of vaccines, and by developing appropriate standards for cold-chain
facilities for vaccines.
ANNEX C: METHODOLOGIES AND DEFINITIONS |
77
Project focus Strengthening the national health system for public health preparedness for COVID-19
Classification
(as per COMMON
PRINCIPLES
FOR CLIMATE
MITIGATION
FINANCE
TRACKING
Version 3 —
18 October 2021):
(1) Sector
(according to
tables 2-12
of CPs)
(2) Category
(3) Eligible activity
Mitigation finance eligible under the following activities:
Activity 2.1:
Sector (Table 2): Energy
Category: Renewable energy generation
Eligible Activity (Activity 2.1): Generation of renewable energy with low lifecycle GHG emissions to
supply electricity, heating, mechanical energy or cooling
Activity 12.1:
Sector (Table 12): Cross-Sectoral Activities
Category: Energy and resource-use efficiency
Eligible Activity (Activity 12.1): An activity that enables a reduction in energy or material use across
a supply chain (upstream or downstream) through energy efficiency or resource-use efficiency
improvements in the existing supply chain, through a shift to a less carbon-intensive supply chain,
or by implementing circular economy systems.
Project’s Eligible Activities: Use of energy efficient principles and renewable energy generation in
building and retrofitting of cold-chain facilities and low-carbon procurement criteria for vaccine
distribution and storage.
Type of financial
instrument
Investment loan
Calculation of
mitigation finance,
including basis (for
example, eligible
components)
The total financing for this project was estimated at $75 million. Of this, around 10% was attributed
to mitigation finance. Eligible activities for mitigation finance mainly fell under Component 1:
Emergency COVID-19 Response ($74 million) and were as follows:
Procurement, storage, and distribution of vaccines that follow energy efficient principles and low
carbon, procurement criteria to avert greenhouse gas emissions.
Building, outfitting, and retrofitting of cold-chain facilities that incorporate renewable energy
generation and energy efficiency standards, thus ensuring that building back better and green
recovery remained at the core of the pandemic response.
Type of mitigation
finance
(own resources,
co-finance)
MDB own account
78 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE
ANNEX C.6 POST-2020 TARGETS RELATED TO THE JOINT
MDB CLIMATE FINANCE TRACKING METHODOLOGY
MDB Post-2020 targets related to the joint MDB climate finance tracking methodology
AfDB Doubling of climate finance to $25 billion for the period 2020-25, giving priority to adaptation finance.
Source: The African Development Bank pledges $25 billion to climate finance for 2020-2025, doubling its commitments
ADB By 2030, at least 75% of the number of its committed operations (on a three-year rolling average,
including sovereign and non-sovereign operations) will be supporting climate change mitigation and
adaptation. Climate finance from the ADB’s own resources will reach $80 billion for the period 2019–30.
In 2021, ADB elevated its climate finance ambition to reach $100 billion, up by $20 billion by 2030.
Sources: Strategy 2030:
Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific
News Release: ADB Raises 2019–2030 Climate Finance Ambition to $100 Billion
Medium-term targets: 65% of the number of operations (on a three-year rolling average) and $35 billion
for the period 2019-24.
Source: ADB Corporate Results Framework, 2019–2024: Policy Paper
AIIB Reflecting its commitment to support the Paris Agreement, AIIB will aim to reach or surpass by 2025
a 50% share of climate finance in its actual financing approvals. The Bank currently estimates its
cumulative climate finance approvals to be $50 billion by 2030.
Source: AIIB Corporate Strategy: Financing Infrastructure for Tomorrow, AIIB to Fully Align with Paris Agreement Goals by
Mid-2023, Currently projects $50 billion investment for climate finance by 2030
EBRD
Green finance is to account for more than 50% of total annual EBRD investment by 2025.
The EBRD’s Green Economy Transition (GET) approach for the period 2021-25 is helping economies
where EBRD operates build green, low-carbon and resilient economies. The new approach sets a green
finance target of 50% of all EBRD’s Annual Bank Investment by 2025. This green finance is composed
of climate finance for both mitigation and adaptation as well as finance addressing other environmental
objectives. The EBRD does not have separate targets for climate action. Nevertheless, it expects that
the bulk of the finance will be classified as climate finance under the joint MDB approach, in line with
the EBRD’s current investment focus. For the previous period, 2016-20, cumulative climate finance
accounted for approximately 95% of the reported green finance.
Source: https://www.ebrd.com/what-we-do/get.html
EIB The EIB will gradually increase the share of its financing dedicated to climate action and environmental
sustainability to more than 50% of its operations in 2025.
From 2021, the EIB will deliver against a target that comprises both climate finance and environmental
sustainability finance. Although the EIB does not use any separate climate finance target, the joint target
has been approved by the EIB’s Management Committee on the basis of modelling the climate finance as
a percentage of total financing. This modelling has shown that climate finance comprises approximately
85% of the volume reported against the target. Additionally adaptation finance should increase to 15% of
climate finance by 2025.
Sources:
The EIB Group Climate Bank Roadmap 2021-2025.;
The EIB Climate Adaptation Plan: Supporting the EU Adaptation Strategy to build resilience to climate change
IDBG Climate finance in IDB Group operations (of climate finance approvals as a percentage of all financing
commitments for 2020-23) is ≥30% (annual floor). Note: IDB Invest reports at the level of closings (not
approvals).
Source: https://crf.iadb.org/en
IsDB The IsDB is committed to a climate finance target of 35% of total financial commitment by 2025.
This 35% climate finance target excludes operations of IsDB Group members including the Islamic
Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance
Corporation (ITFC) and the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC).
Source: IsDB 2020-2025 Climate Action Plan
NDB NDB aims to direct 40% of total approvals to projects contributing to climate change mitigation and
adaptation, including energy transition, over 2022-2026.
Source: https://www.ndb.int/wp-content/uploads/2022/07/NDB_StrategyDocument_eVersion_07.pdf
WBG The WBG announced a target for an average of 35% of its financing to be climate finance over the period
2021-25. 50% of World Bank — IBRD and IDA — climate financing will support adaptation and resilience.
The 35% target is a significant increase from the 26% achieved on average in FY 2016-20 and an even
larger increase in dollar terms as the World Bank Group’s total financing has also expanded.
Source: https://openknowledge.worldbank.org/handle/10986/35799
ANNEX C: METHODOLOGIES AND DEFINITIONS |
79
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