Climate Change Fund, 2008–2019

Evaluation Document | 14 July 2020

The Climate Change Fund (CCF) was established in May 2008 by Asian Development Bank (ADB), from its net income. Its goal was to facilitate greater investments in developing member countries in Asia and the Pacific to address the causes and consequences of climate change, alongside ADB’s own assistance in various related sectors. As of 31 December 2019, CCF had allocated $77.1 million for 118 CCF projects. The allocation of resources was concentrated on clean energy and adaptation: $39.3 million for clean energy development (51%); $28.5 million for adaptation (37%); $9.1 million for reduced emissions from deforestation and forest degradation, and improved land use management (12%); and $0.2 million for climate finance readiness (0.3%). Climate finance readiness was added as an area of intervention in 2014. By sector, most funds were allocated to the energy sector and the agriculture, natural resources, and rural development sector. Regional projects covering two or more developing member countries across ADB regions received the largest proportion of CCF funding. By country, the People’s Republic of China received the largest allocation, followed by Sri Lanka, and Indonesia. The East Asia region received the largest allocation, while CCF allocations for projects in the Pacific and Central and West Asia regions were small. 

This evaluation found that the CCF had been instrumental in mainstreaming and scaling up ADB’s climate actions and had met most of its objectives. It assessed the fund successful. The CCF had generally delivered well on its mandate to support climate action at ADB and had facilitated greater investments in developing member countries to address climate change. However, there were some disbursement and delay inefficiencies at the project level and concerns remain on the fund’s overall sustainability. Funding uncertainty limits the CCF’s strategic importance in supporting ADB’s Strategy 2030 operational priority 3: tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.

The evaluation offers three recommendations for ADB: (i) develop predictable and regular funding for the CCF and target projects that directly facilitate greater climate investments in developing member countries, such as technical assistance associated with or linked to loan and/or grant component of the investment, particularly for adaptation, and across more sectors and countries, to better align with operational priority 3 and Strategy 2030; (ii) continue to use CCF resources to provide strategic support for climate risk and adaptation options assessments and provide project-level support only on a selective basis; and (iii) develop an overarching results framework for the CCF with updated guidelines to define its strategic role and ringfence dedicated staff resources to improve monitoring and evaluation of the portfolio.