What is the fund all about?
The CCF was established in May 2008 to facilitate greater investment in developing member countries (DMCs) to effectively address the causes and consequences of climate change. The CCF is a key mechanism for pooling resources within ADB to address climate change through technical assistance (TA) and grant components of investment projects.
What are the fund's priorities?
CCF will focus on three areas:
- clean energy, sustainable transport and low-carbon urban development – The fund aims to help DMCs achieve energy security and transition to low carbon economies. This is accomplished through cost effective investments, especially in pre-commercial clean energy (CE) technologies, that result in greenhouse gas (GHG) mitigation. Financial, policy and institutional reforms, as well as regulatory frameworks that encourage CE development and energy access, are also supported by the fund;
- reduced emission from deforestation and degradation and improved land use management – The fund prioritizes interventions that maintain, restore and enhance carbon-rich natural ecosystems, especially forests, and prevent these carbon sinks from becoming sources of GHG emissions. It also aims to maximizes co-benefits from sustainable development and the conservation of biodiversity, and generation of other ecosystem services and ecological processes; and
- adaptation – The fund focuses on enhancing the climate resilience of infrastructure, communities, and key sectors, especially in the following geographic areas: arid and rain-fed agricultural areas, densely populated coastal lowlands and deltas, and low-lying islands.
What activities are supported by the fund?
The following types of activities may qualify for CCF support:
- Preparation of relevant strategies or action plans for ADB, its regional departments, and DMCs;
- Investment in climate change mitigation or adaptation measures;
- Development of knowledge products and services related to climate change
- Facilitating knowledge management activities, including regional conferences and workshops
- Funding to off-set ADB’s corporate carbon footprint.
More specifically, CCF resources are meant to be used for technical assistance, investment components of projects and direct charges.
Who is eligible to receive funding?
All DMCs are eligible for CCF resources. Project proposals are submitted by ADB’s User departments to the Climate Change Steering Committee (CCSC) in ADB for CCF support. The CCSC reviews and makes recommendations on the applications for CCF allocation. Applications are reviewed in six batches and are due on 31 January, 31 March, 31 May, 31 July, 30 September, and 30 November.
Who supports the fund?
ADB is working with regional and private partners in support of this fund, which is financed by ADB's net income and Ordinary Capital Resources (OCR).
As of 31 December 2012, the $50 million ADB financing for the CCF has been fully allocated to 60 projects -- 24 on CE development, 9 on REDD+, and 27 on adaptation.