Transcript Dr Anthony Nyong, Manager, Compliance and

The Role of MDBs in Tackling
Climate Change
Dr. Anthony Nyong
African Development Bank
International Parliamentary Conference on Climate
Change
July 2010
Outline of Presentation
Role of MDBs in Financing Climate Change
How Much Climate Change Finance Do
MDBs Provide
Constraints and Prospects for Effective
Climate Change Financing
The African Development Bank: Rising to the
Challenge in Africa
Role of MDBs in Climate Finance

MDBs’ mandate on Sustainable Development
is burdened by Climate Change

MDBs able to integrate climate across their
strategic priorities, supporting a coherent
approach to development.
Climate Change interventions must be rooted in
Development, aligned with mitigation & adaptation
Development
‘Climate
Low Carbon
Resilient
Dev
Dev
‘Climate
Compatible
Development’
Mitigation
Adaptation
‘Climate
Proofed
Abatements’
Source: Catalyst,
2009
MDBs’ Response to Climate
Change

Increasing climate change analytical, policy and
capacity building support.

identified and developed programs to assist
developing countries

Provide innovative climate change financing
instruments

Leveraging private sector capital

Instrumental to development of carbon markets
and reduction of GHG emissions
MDB Climate Change Finance
How Much is Mobilized (US$ billion)?
2007
2008
2009
2010
10
13.8
15.7
16.2
24.9
35.8
39.5
42.4
2.4
4.4
5.3
5.8
7.5
12.2
14.9
17.4
4.7
7.6
9.4
10.6
15.4
n.a.
28.6
n.a.
36.2
9
41.3
15
Energy
Lending/ Investments
Total cost of projects/
programmes
supported
Energy Access
Lending/ Investments
Total cost of projects/
programmes
supported
Low Carbon
Lending/ Investments
Total cost of projects/
programmes
supported
CTF
Source: MDB Joint Report to the Hokkaido G8 (Richard Stern, 2010)
Regional Distribution of MDB
Climate Change Financing
Where is the Money Spent?
Shares
2006 2009
2006
2007
2008
2009
2006 2009
Africa
0.8
1.4
1.5
1.3
5.0
12%
Asia/Pacific
1.2
1.5
4.1
3.7
10.6
26%
EMENA
2.6
3.5
3.5
5.3
14.8
37%
LACC
0.9
0.7
1.5
6.8
9.8
24%
Total
5.5
7.0
10.5
17.1
40.1
100%
Region
Regional disparity exacerbated by Focus on
Mitigation
MDBs’ Climate Change Financing
How Do MDBs Generate Climate Finance?
Shareholder Capitalization
Replenishment
Concessional Trust Funds
Capital Market
Climate Change merits careful consideration in
negotiations on these options
African Development Bank & Climate
Change Financing in Africa
Enormous Additional Burden to Development
BUT, Opportunities exist for climate-resilient
and low carbon growth in Africa
Climate Change and Africa

Cost of adaptation and of putting Africa on a low
carbon growth pathway at about US$22-31 billion
per year by 2015, and $52-68 billion per year by
2030.

« Climate-proofing » will add 40% to the costs to
meeting the MDGs in Africa.

This would require international financial
assistance of some US$ 100 billion a year over the
next decade

These costs are low in comparison with the
economic benefits of adaptation and mitigation
What Africa Needs to Adapt
Costs of Adaptation to Current and Future Climate in Africa $Billion per year
Enhancing
resilience for future
investment
$50 Billion.
$40 Billion.
Adaptation to
Future Climate
Change
Immediate priorities
and capacity building
$30 Billion.
Accelerated
Development
$20 Billion.
Adaptation to
Current Climate
(development)
but essential for
future resilience
$10 Billion.
Social
Protection
2012
2030
AfDB and Climate Change in Africa
Components of the Strategy
US$ 11 billion Climate Change Investment: 20102014
MDB Climate Change Finance
Examples of Good Practices from AfDB






Regional co-generation Initiatives in Eastern and
Southern Africa.
Lake Turkana Independent Wind Power project
Financed about 100 operations worth approximately
US$ 2.8 billion in the Congo Basin forests (world’s
second largest rainforest)
Major analytical pieces of work leading towards an
African Green Development Strategy for Africa.
Support to strengthen Regional African Climate
Institutions through the ClimDev-Africa Special Fund.
Off-setting of Carbon emissions for Major Corporate
Events and travels
Financing Climate Change
Interventions in Africa
Africa’s Low Access Rate to Global Resources
Africa Requires Substantial Resources and
Effective Financing Instrument
AfDB has Comparative Advantages to Host
and Manage Africa’s Resources
Africa’s needs are enormous and the AfDB has
demonstrated capacity to deliver.
Conclusion

MDBs have an important role to play in addressing
climate change challenges

Effective interventions by MDBs depend on availability
of new and additional resources

African Development Bank, Committed to helping
Africa address Climate Change Challenges:

Competing demands, limited resources

Requires substantial resources to meet the growing demands
from Regional Member Countries

Responded to Requests by Africa’s Leadership to Host and
Manage the Africa Green Fund.

Created a Department of Energy, Environment and Climate
Change and substantially ramped up its capacity
Thank You
For Further Details
www.afdb.org