International Parliamentary Conference on Climate Change July 2010

1. The Role of MDBs in Tackling Climate Change Dr. Anthony Nyong African Development Bank International Parliamentary Conference on Climate Change July 2010

2. 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

3. 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.

4. Climate Change interventions must be rooted in Development, aligned with mitigation & adaptation Development ‘Climate Resilient Dev Low Carbon Dev ‘Climate Compatible Development’ Mitigation Adaptation ‘Climate Proofed Abatements’ Source: Catalyst, 2009

5. 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

6. MDB Climate Change Finance How Much is Mobilized (US$ billion)? Source: MDB Joint Report to the Hokkaido G8 (Richard Stern, 2010)

7. Regional Distribution of MDB Climate Change Financing Where is the Money Spent? Regional disparity exacerbated by Focus on Mitigation

8. MDBs’ Climate Change Financing How Do MDBs Generate Climate Finance? Climate Change merits careful consideration in negotiations on these options

9. 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

10. 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

11. What Africa Needs to Adapt

12. AfDB and Climate Change in Africa

13. Components of the Strategy US$ 11 billion Climate Change Investment: 2010-2014

14. 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

15. 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.

16. 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

17. Thank You For Further Details www.afdb.org