Climate Change

Climate Change Fund

Background

The vulnerability of Asia-Pacific's natural resources, agriculture and infrastructure to climate change threatens to reverse the region's progress in poverty reduction and development.

To address this, in 2008 ADB allocated $40 million of its resources into the Climate Change Fund (CCF), as a way to encourage greater investments in projects that will reduce greenhouse gas (GHG) emissions, conserve biological diversity, and safeguard livelihoods against the effects of climate change.

Purpose

In May 2008, the CCF was established to facilitate greater investments in ADB's developing member countries (DMCs) to effectively address the causes and consequences of climate change. Through CCF, ADB provides grants to projects through technical assistance, or investments in the private and public sectors. CCF initially dedicated $25 million towards mitigation activities-to lower carbon emissions, $10 million for adaptation activities-to build resilience, and $5 million for pilot activities in reducing emissions from deforestation and land degradation (REDD).

Eligible Activities

CCF prioritizes projects that will help ADB's DMCs transition to the use of clean energy technologies, restore and enhance natural ecosystems, and strengthen existing investments and livelihoods against climate change impacts.

The sample projects which were eligible for CCF support include the following:

• Ensuring that ports, railways, sewage, and other transport and urban development systems are resilient to changing climate hazards
• Research on improving water management systems, accounting for changing climatic conditions such as glacial melt, changing rainfall patterns, etc.
• New power plant projects using clean energy technologies, and/or result in greater use of clean fuels
• Conversion or retrofitting of existing traditional power plants into power plants using clean energy technologies
• Setting up of new facilities to produce clean fuels, or upgrading existing facilities to reduce energy and fuel losses
• Upgrading of Transmission and Distribution systems for greater energy efficiency
• Business development of energy service companies, or upgrading of existing end-use facilities to include or switch to clean fuels
• Developing better disaster preparedness and response policies, plans and measures
• Industrial projects designed to withstand climate change impacts such as storm surges, sea level rises, and other extreme events
• Manufacturing solar panels and other renewable energy components
• Railway expansions or improvement of urban and transport projects that will decrease GHG emissions
• Policy and institutional changes to improve land-use planning and management
• Pilot activities applying the concept of REDD (Reduced Emissions from Deforestation and Degradation) or building capacity for it
• Studies that promote better understanding of GHG emission reduction for land use and forests
• Research into climate-resilient crops and/or animals
• Improving the climate-resiliency of biodiversity hotspots or corridors
• Activities focusing on the socio-economic development of communities and sectors vulnerable to climate change (may include studies on climate change migrants and refugees)

For more information, read the CCF Implementation Guidelines [ PDF: 91kb | 19 pages ].

Climate Change Fund (Clean Energy Component)