Poverty and Environment Fund (PEF)

What is the PEF?

The PEF is a multi-donor umbrella facility that promotes the mainstreaming of environment objectives in ADB operations and poverty reduction strategies, plans, programs, and projects of ADB members. The PEF provides a dedicated source of grant financing for collaborative approaches between ADB, other funding agencies, donors and members to purposefully address poverty-environment linkages in Asia and the Pacific.

What are the priorities?

The PEF is focused on the three main poverty-environment linkages prioritized in the Environment Policy: 

  • protection, conservation, and sustainable use of natural resources and ecosystem services to maintain the livelihoods of the poor
  • reduction of air and water pollution that directly impacts the health and productivity of poor people
  • reduction of vulnerability to natural hazards and disaster prevention.

What kind of activities are eligible for the grant?

The small-scale activities financed by the PEF covers a range of interventions where environmental management plays a role in poverty reduction. 

Examples include: 

  • interventions in the fields of community-based resource management 
  • sustainable utilization of biological resources and biodiversity
  • microfinance 
  • improved market access
  • other livelihood development projects resulting in environmental improvement
  • demonstration of land-use practices that sustain soil fertility or enhance soil and water
  • conservation
  • interventions that bolster the role of women in natural resources management
  • demonstration of environmentally sound technology choices and outputs in agriculture,
  • forestry, fisheries, and industry 
  • tackling of indoor air pollution, waste management, and
  • recycling
  • cleaner production and emission management/monitoring among small- and medium-sized enterprises.

Who is eligible to receive the grant?

Priority is given to demonstrating potential opportunities for environmental improvement and poverty reduction that could become an integral component of ADB-financed projects and those of other agencies. Through appropriate linkages with ADB operations, the outcome of PEF activities is being sustained by influencing future ADB policy dialogue, and project identification, design, and implementation. 

Who supports the grant?

Norway and Sweden have made initial contributions amounting to a combined total of approximately $3.6-million, to be provided for an initial three-year period commencing in mid-2003.