2021

CLIMATEFINANCEJOINT REPORTON MULTILATERALDEVELOPMENT
BANKS’

2021JOINT REPORT ON MULTILATERALDEVELOPMENT BANKS’

CLIMATEFINANCEOCTOBER 2022

This report was written by a group of multilateral development banks (MDBs),
composed of the African Development Bank (AfDB), the Asian Development
Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council ofEurope Development Bank (CEB), the European Bank for Reconstruction
and Development (EBRD), the European Investment Bank (EIB), the InterAmerican Development Bank Group (IDBG), the Islamic Development Bank(IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).
The findings, interpretations and conclusions expressed in this work do notnecessarily reflect the official views of the multilateral development banks’boards of executive directors or the governments they represent.

CONTENTS
iv		
v		
vii		

Abbreviations and acronyms
Preface
Executive summary

1
1		
1		
3		

1. OVERVIE W OF MDB ME THOD OLO GIES FOR TR ACKING CLIMATE FINANCE
1.1. Finance for adaptation to climate change
1.2. Finance for the mitigation of climate change
1.3. Methodology for climate co-finance5
2. MDB CLIMATE FINANCE IN LOW- AND MIDDLE- INC OME EC ONOMIES, 20215		
2.1. Total MDB climate finance6			 2.1.1. MDB climate finance by type of recipient or borrower
7			 2.1.2. MDB climate finance by type of instrument8			 2.1.3. MDB climate finance by region8		
2.2. MDB adaptation finance12
2.3. MDB mitigation finance16
2.4. Climate co-finance19
3. MDB CLIMATE FINANCE IN HIGH - INC OME EC ONOMIES, 2021
19
3.1. Total MDB climate finance20		 3.1.1. MDB climate finance by type of recipient or borrower
21		 3.1.2. MDB climate finance by type of instrument22		 3.1.3. MDB climate finance by region
22
3.2. MDB adaptation finance26
3.3. MDB mitigation finance29
3.4. Climate co-finance
31
45
57

ANNEX A. Further detailed analysis of total MDB climate finance data, 2021
ANNEX B. Geographical coverage of the report, 2021
ANNEX C. Methodologies and definitions

ABBREVIATIONS AND ACRONYMS
ADB

Asian Development Bank

AfDB

African Development BankAIIB

Asian Infrastructure Investment BankCCF

Climate co-finance

CEB

Council of Europe Development BankCIF

Climate Investment Funds

CO 2

Carbon dioxide

EBRD

European Bank for Reconstruction and Development

EIB

European Investment BankEU

European Union

€

Euro

FY

Fiscal year

GEF

Global Environment Facility

GCF

Green Climate Fund

GHG

Greenhouse gas

IDB

Inter-American Development BankIDBGInter-American Development Bank Group, composed of the IDB, IDB Lab and IDB Invest

IDB Invest The private sector arm of the IDBG
IDB Lab

The innovation laboratory of the IDBG

IDFC

International Development Finance Club

IFC

International Finance Corporation

IsDB

Islamic Development Bank

MDBs

Multilateral development banks

MIGA

Multilateral Investment Guarantee Agency

NAMAs

Nationally Appropriate Mitigation Actions

NDCs

Nationally Determined Contributions

NDB

New Development BankUNFCCC

United Nations Framework Convention on Climate Change$

United States dollar

WB	World Bank, composed of the International Bank for Reconstruction and Development (IBRD), and theInternational Development Association (IDA)
WBG

World Bank Group, composed of the WB, IFC and MIGAPREFACE
The Joint Report on Multilateral Development Banks’ Climate Financeis an annual collaborative effort to publish multilateral developmentbank climate finance figures, together with a clear explanation of themethodologies for tracking this finance. This joint report, alongside thebanks’ publication of climate finance statistics in their respective corporate
media, is intended to track progress in relation to their climate financetargets such as those announced at COP21 and the greater ambition
pledged for the p­ ost-2020 period.
Since the first Joint Report on Multilateral Development Banks’ Climate Finance, which covered
climate finance for 2011, figures reported for climate finance have been based on a joint MDB
climate finance tracking and reporting methodology. This methodology has been gradually updated
as and when need arose, in particular in light of experience and global dynamics in this space.
From the 2014 edition onwards, the methodology has included reporting on climate co-financealongside MDB climate finance. The first eight editions of the report provided climate finance dataon a group of emerging and developing economies.
A detailed breakdown is provided throughout the report, differentiating between climate financegoing to low- and middle-income economies and high-income economies. This edition of the reportpresents the multilateral development banks’ climate finance commitments data in two separate
chapters based on the economies where these banks operate; the first with data for low- andmiddle-income economies, and the second for high-income economies.
In 2015, the multilateral development banks and the International Development Finance Club (IDFC)
agreed on a set of common principles for finance to mitigate climate change and an initial setof common principles for finance to support adaptation to climate change. Their intention was
to take a common approach to tracking reporting on climate finance. In December 2019, themultilateral development banks1 and members of the IDFC published the joint Framework andPrinciples for Climate Resilience Metrics in Financing Operations, setting out the core concepts andcharacteristics of climate resilience metrics alongside a high-level framework for such metrics infinancing operations.
The multilateral development banks also conducted a review of the joint methodology for
tracking adaptation finance over the 2021-2022 period. This review aims to take stock of recent
developments in the field of adaptation finance, the MDBs’ efforts to support climate adaptation
and resilience through a wide range of sectors beyond traditional infrastructure, and the increasing
diversity of financial conditions that are used to support adaptation and resilience. This review
complements ongoing efforts by the multilateral development banks to enhance the robustness
and transparency of climate finance tracking and reporting, and support climate action, in linewith the objectives of the Paris Agreement. Building on the review, the Climate Change Adaptation
Working Group has commenced an update of the tracking methodology for climate adaptation toreflect the evolving understanding of adaptation and the advancements in the fields of adaptation
finance. The working group aims to complete the methodology update during 2022.
The Climate Change Mitigation Working Group finalised its review of the tracking methodology forclimate mitigation finance and commenced tracking using the new methodology on 1 January 2021
for the AfDB, ADB, AIIB, EBRD, EIB, IDBG, IsDB and NDB and on 1 July 2021 for the WBG tocoincide with the institutions’ new fiscal years. The new version of the methodology published on
18 October 2021 includes a more granular breakdown of types of eligible activity, clear criteria thatmust be met and additional guidance to facilitate the application of these criteria.

1

The AfDB, ADB, AIIB, EBRD, EIB, IDBG and IsDB.

PREFACE | v

The multilateral development banks will continue to improve their tracking and reporting of climate
finance as part2 of their commitments to ensure consistent financial flows to the countries’ longterm, low-carbon and climate-resilient development pathways, as established in Article 2.1(c) of
the Paris Agreement.
The multilateral development banks announced their climate action targets for 2025 at the UN
Secretary General’s Climate Action Summit in New York in September 2019. This resulted in an
expected collective total of $50 billion for low-income and middle-income economies, and at
least $65 billion of climate finance globally, with an expected doubling in adaptation finance to$18 billion, and private mobilisation of $40 billion. In 2021, the MDBs already surpassed thesecollective expectations on climate finance — both for low- and middle-income economies andglobally. They also notably increased adaptation finance to over $19 billion. The table in Annex C.6
summarises post-2020 MDB climate commitments.
The banks presented updates on their work to align with the Paris Agreement at COP25 in
December 2019 and COP26 in November 2021. This included the key principles and criteria of
their approach, as well as some draft methodological guidance on how to operationalise it (theMDB Paris Alignment Framework). 3, 4 Financial flows presented in this report are based on
methodologies that are separated and distinct from the MDB Paris Alignment Framework. The
multilateral development banks will develop their own operational methodologies to implement the
MDB “Paris Alignment Framework” and will set up processes to ensure that activities they report asclimate finance are those that are consistent with the goals of the Paris Agreement.
This 2021 edition of the Joint Report on Multilateral Development Banks’ Climate Finance wasprepared by the European Investment Bank together with the following partners: the African
Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, theCouncil of Europe Development Bank, the European Bank for Reconstruction and Development, theInter-American Development Bank Group, the Islamic Development Bank, the New Development
Bank and the World Bank Group.
October 2022

Download this report at:
www.eib.org/mdbs-climate-finance
Download the infographic summary at:www. eib.org/mdbs-climate-finance-infographics

2	Accelerated contribution to the transition through climate finance” – Building Block 3 of MDBs’ joint framework: https://www.eib.org/en/
press/all/2018-320-multilateral-development-banks-announce-joint-framework-for-aligning-their-activities-with-the-goals-of-the-parisagreement. Multilateral Development Banks announce joint framework for aligning their activities with the goals of the Paris Agreement(eib.org).

vi

3

Multinational development banks present their Paris Alignment approach (ebrd.com)

4

Progress Report: Multilateral Development Banks Working Together for Paris Alignment (eib.org)| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEEXECUTIVE SUMMARY
This 11th edition of the Joint Report on Multilateral Development Banks’
Climate Finance is an overview of climate finance committed in 2021 by
the African Development Bank (AfDB), the Asian Development Bank (ADB),
the Asian Infrastructure Investment Bank (AIIB), the European Bank for
Reconstruction and Development (EBRD), the European Investment Bank
(EIB), the Inter-American Development Bank Group (IDBG), the Islamic
Development Bank (IsDB) and the World Bank Group (WBG). This year’s
report also summarises information on climate finance tracking from the
New Development Bank (NDB) and the Council of Europe Development
Bank (CEB), presented separately from the joint figures.5 NDB and CEB
climate finance commitments are not yet included in the total MDB climate
finance reported in this year’s edition.
As in previous years, the data and statistics presented in this year’s report result from theuniform application of the methodologies developed jointly by the multilateral developmentbanks for their annual commitments. In this report, the term “MDB climate finance” refers to thefinancial resources (from own accounts and MDB-managed external resources) committed by themultilateral development banks to their operations, and components thereof, directed to activities
that mitigate climate change and/or support adaptation to climate change. The term “climate cofinance” refers to the volume of financial resources invested by other public and private external
parties alongside the multilateral development banks for climate change mitigation and adaptation
activities. The banks have reported jointly on climate finance since the first edition in 2012, which
reported figures for 2011, and have added joint reporting on climate co-finance since the 2015
edition. Starting with the 2019 report, for the purpose of greater transparency and consistency,
the multilateral development banks agreed to start reporting on all economies where these banks
operate, while maintaining the report’s focus on low-and middle-income economies. This change
allowed for a clear breakdown by country income level.
The MDB climate finance commitments are presented in two main groups: 1) low-income andmiddle-income economies, a grouping that includes low, lower-middle and upper-middle income
economies; and 2) high-income economies. These data sets are presented in two separate
chapters in this year’s report. The multilateral development banks endeavoured to attributeclimate finance in the category of global, multi-regional and regional projects to specific income
groups. The economies are categorised by income grouping in accordance with the World Bank’sclassification dated June 2021 (see Table B.1). More detailed analysis, and data that cannot easily
be split by income level such as climate finance for SIDS, are provided in an Annex A and Annex B.
LOW- AND MIDDLE-INCOME ECONOMIESIn 2021, $50.666 billion was for low-income and middle-income economies. $33.055 billion, or
65%, of this total was for climate change mitigation finance and $17.611 billion or 35% was forclimate change adaptation finance.
In 2021, the multilateral development banks reported $41.123 billion of their climate finance forpublic recipients and $10.456 billion for private recipients in low-and middle-income economies.
The report also shows that MDB climate finance investments in low-and middle-income economies
are supported by a total of $43.603 billion in climate co-finance, with 66% in mitigation activitiesand 34% in adaptation activities. 70% of climate co-finance in low- and middle-income economies
came from public sources and 30% from private sources.
5

See pages 10 and 11 for data on NDB and CEB climate finance commitments.

Executive summary | vii

HIGH-INCOME ECONOMIESIn 2021, $31.051 billion was for high-income economies. $29.475 billion, or 95%, of this total wasfor climate change mitigation finance and $1.576 billion, or 5%, was for climate change adaptation
finance.
In 2021, the multilateral development banks reported $19.185 billion of climate finance for public
recipients and $11.866 billion for private recipients in high-income economies.
The report also shows that MDB climate finance investments in high-income economies aresupported by a total of $56.701 billion of climate co-finance, with 99% in mitigation activities and
1% for adaptation activities. 50% of climate co-finance in high-income economies came from public
sources and 50% from private sources.
CLIMATE FINANCE DETAIL
Figure 1a presents MDB climate finance commitments reported for 2019-2021 for low- andmiddle-income economies where the multilateral development banks operate, while Figure 1b
shows MDB climate finance commitments reported for the same period for high-income economies
where the banks operate.
Figure 1a. MDBs’ climate finance commitments in low- and middle-income economies, 2019-21 (in $ billion)

60

50.7
2.4
(3.9

4.8
0.9)

2.7

41.5

40

3.6

38.0

$ billion

7.1

3.4

5.3

3.9

2.3

4.8

1.1

0.7

3.2

3.6

2.5

4.4

20

4.8

2.1

0.3

0.5
28.0
21.3
18.4

0
2019

AfDB

ADB

ADB*

2020

AIIB

EBRD

EIB

viii | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2021

IDBG

IsDB

WBG

Figure 1b. MDB climate finance commitments in high-income economies, 2019-21 (in $ billion)

40

31.1
1.6

28.0

$ billion

1.6

20.1

20

1.1

0

18.1

24.6

28.1

2019

2020

2021

0.5

0.4
2019

EBRD

EIB

0.9

0.8
2020

IDBG

0.7

0.5
2021

WBG

Notes for Figures 1a. and 1b:
1. Starting in 2021, the reporting of ADB’s climate finance will be based on commitments or signatures and not on approvals. This
is in accordance with the decision made in 2017 to measure and report ADB’s corporate performance based on commitments
through 2030.
	(*) For ADB, external resources under management (ERUM) includes ADB-administered financial resources from financing
partners, including AIIB. ADB administers financing from AIIB for several projects, some of which have components that contributeto climate finance. For 2021, ADB reports climate adaptation finance of $20 million and climate mitigation finance of $893 million
from ADB-administered financing from AIIB. To avoid double counting, these amounts are excluded from the total MDB amounts
for 2021 as AIIB reports climate finance for the same projects as a share of their financing under own resources.
2. IDBG’s figures have included all climate finance for public and private borrowers or beneficiaries in all 26 IDBG borrowing member
countries, via its three operational windows — IDB, IDB Invest and IDB Lab — on the basis of approval by the respective boards ofexecutive directors. From 2020 onward, for IDB Invest only, the figures refer to total commitments of long-term finance, in an effort
to more accurately reflect actual investments as well as the mobilisation of private sector players. In 2021, IDBG climate financeconsisted of: $4.5 billion through IDB; $1.1 billion through IDB Invest; and $23 million through IDB Lab.
3. The IsDB reported climate finance commitment excludes operations of IsDB Group members including the Islamic Corporation for
the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation
for Insurance of Investment and Export Credit (ICIEC).
4. EIB 2019-21 climate finance commitments include some EU economies in addition to those previously included by the EIB, EBRD
and WBG. Please see Annex B for details of geographical coverage in past editions of the joint report.
5. WBG climate finance resources (including own-account and managed external resources) for IFC, MIGA and the World Bank were
$4.097 billion (including $76 million of managed external resources), $1.348 billion and $23.035 billion (including $1.829 billionof managed external resources), respectively, for the fiscal year 2021, which covers the period from 1 July 2020 to 30 June 2021.
IFC’s total commitments of own-account long-term finance in the fiscal year 2021 were $12.474 billion and IFC reached a level of
32% on long-term finance own-account climate commitments. For MIGA, total commitments on its own account in the fiscal year
2021 were $5.2 billion and climate finance reached 26%. WB total commitments on its own account were $66.55 billion and its
share of climate-related financing reached 32%.
6. The EBRD and EIB climate finance figures in this chart are based on the annual average European Central Bank rate. For 2021 theexchange rate used is €1 = $1.1827.
7. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.

Executive summary | ix

The multilateral development banks apply two distinct methodologies — with fundamentallydifferent approaches — to tracking climate change adaptation finance (or “adaptation finance”)
and to climate change mitigation finance (or “mitigation finance”). Both methodologies, however,track and report climate finance in a granular manner. In other words, the climate finance reported
covers only those components and/or sub-components or elements or proportions of projects that
directly contribute to or promote adaptation and/or mitigation.
The multilateral development banks estimate adaptation finance using the joint MDB methodology
for tracking climate change adaptation finance, which involves a three-step approach. Thismethodology is based on a context- and location-specific, granular and conservative approach andcaptures the amounts associated with activities directly linked to vulnerability to address climatechange. The banks try as far as possible to differentiate between their usual development financeand finance provided with an explicit intent to reduce vulnerability to climate change. In July 2015,
the multilateral development banks and the IDFC agreed an initial set of Common Principles for
Climate Adaptation Finance Tracking.6 The organisations continue to harmonise their approaches
to tracking adaptation finance. As mentioned above, the multilateral development banks havecommenced an update of the tracking methodology for climate adaptation to be completed during2022. Climate change adaptation finance in 2021 totalled $19.187 billion, of which 92% wasdirected at low- and middle-income economies.
The multilateral development banks’ methodologies for tracking climate mitigation finance alignwith the Common Principles for Climate Change Mitigation Finance Tracking 7 that the MDBs andthe IDFC jointly agreed and first published in March 2015. At COP24 in 2018 they announced aplan to work jointly to review and strengthen the Common Principles for Climate Mitigation FinanceTracking. Mitigation finance is estimated in accordance with the joint MDB methodology for
tracking climate mitigation finance, which is based on a list of activities in sectors and sub-sectorsthat reduce greenhouse gas emissions and are compatible with low-emission development. In
2020, the banks finalised their review of the methodology for tracking mitigation climate finance,and commenced tracking using the new methodology on 1 January 2021 for the AfDB, ADB, AIIB,EBRD, EIB, IDBG, IsDB and NDB and on 1 July 2021 for the WBG, to coincide with each institution’s
new fiscal year. The new version of the methodology includes a more granular breakdown of typesof eligible activity, clear criteria that must be met and additional guidance to help interpretation.
Climate change mitigation finance in 2021 totalled $62.530 billion, of which 53% was directed at
low- and middle-income economies.
In addition to reporting on mitigation and adaptation finance, some multilateral development banks
report on volumes of climate finance that have dual, simultaneous benefits: reducing greenhousegas emissions and promoting adaptation to climate change. In 2021, the AIIB, EBRD and IDBG
reported a total of $762 million for dual-benefit projects. See Annex C.4 for further climate financestatistics and examples of such projects. Given the relatively small volumes of dual-benefit
climate finance and in order to simplify data presentation, the tables and graphs throughout thisreport present data by mitigation or adaptation finance, as indicated by the reporting multilateraldevelopment banks.
Climate co-finance including private finance mobilisation:
Climate co-finance committed during 2021 in low-and middle-income economies was $43.603 billion,
with 66% going to mitigation investments and 34% to adaptation investments. 70% of this climate cofinance was from public sources and 30% was mobilised from private sources.

6	
The Common Principles for Climate Change Adaptation Finance Tracking are set out in Annex C.2: https://www.afdb.org/fileadmin/uploads/
afdb/Documents/Generic-Documents/Common_Principles_for_Climate_Change_Adaptation_Finance_Tracking_-_Version_1__02_
July__2015.pdf
7	
The Common Principles for Climate Mitigation Finance Tracking are set out in Annex C.3: https://www.eib.org/attachments/documents/
mdb_idfc_mitigation_common_principles_en.pdf

x| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

For high-income economies the climate co-finance committed during 2021 was $56.071 billion,
with 99% going to mitigation investments and 1% to adaptation investments. 50% of this climate
co-finance was from public sources and 50% was mobilised from private sources.
Annex A provides additional information on MDB total climate finance aggregated across all theircountries of operation.
The New Development Bank and Council of Europe Development Bank´s climate financeinformation:
The New Development Bank (NDB) applied the joint MDB methodologies for tracking climate
mitigation and adaptation finance to projects funded from its own account in 2021, including
sovereign and non-sovereign operations.
In 2021, NDB committed a total of $509 million in climate finance, all of which was dedicatedto climate mitigation activities in middle-income countries. Climate finance accounted for about
26% of NDB’s total approved financing excluding the COVID-19 emergency programme loans. On
a separate note, NDB approved about $3.1 billion in emergency assistance in 2021 to facilitate
countries’ efforts to respond to and recover from the pandemic.
NDB aims to report on the details of its climate finance (for example, by region, sector and instrument)
in future editions of the joint report, as it extends the application of the joint MDB methodologies.
The Council of Europe Development Bank (CEB) is in the process of extending and adapting its
internal processes in order to fully implement the joint MDB methodology for climate financetracking, including the required level of granularity. In this report, the 2021 numbers for climate
mitigation and adaptation finance disclosed by CEB are based on the MDB methodology but may
be incomplete and therefore should be considered as conservative. Furthermore, only projects
financed from CEB’s own account are being tracked, including sovereign-backed financing andnon-sovereign-backed financing. No data for climate co-finance are available.
The CEB committed a total of $621 million in climate finance, representing 13% of the total volume
of financing approved in 2021 (15% excluding the emergency COVID-19 loans approved in 2021).
Mitigation finance accounted for 89% of total climate finance, representing $552.3 million, while$68.6 million (11%) was allocated for climate change adaptation.
The CEB intends to report on the details of its climate finance commitments (for example, by region,
sector and instrument) in future editions of the joint report, as it extends its application of the joint
MDB methodologies after their review in 2021.

Executive summary | xi

1
OVERVIEW OF MDB METHODOLOGIES FOR
TRACKING CLIMATE FINANCE
The tracking of MDB climate finance is based on the harmonised principles and jointly agreed
methodologies for tracking climate adaptation and mitigation finance detailed in Annex C.2 andAnnex C.3, respectively, of this report. In this publication, the term “MDB climate finance” refers
to the amounts committed by the multilateral development banks to financing climate change
mitigation and adaptation activities in the projects they undertake. See Annex B for details of the2021 report’s geographic coverage, and that of past editions.
MDB climate finance includes commitments from the multilateral development banks’ own
accounts, and from external resources channelled through and managed by the banks. Climate
co-finance includes the amount of financial resources contributed by external resources alongside
MDB climate finance. These may include entities from both the private (commercial) and public(non-commercial) sectors.
1.1 FINANCE FOR ADAPTATION TO CLIMATE CHANGE
Climate change adaptation aims to reduce the risks or vulnerabilities posed by climate change andto increase climate resilience. Identification of climate change adaptation finance is the result ofa three-step process and thus, for a project to be counted either fully or partially towards MDB
adaptation finance, it must:a. Set out the project’s context of vulnerability to climate change.
b. Make an explicit statement of intent to address this vulnerability as part of the project.
c. Articulate a clear and direct link between the vulnerability and the specific project activities.
The MDB methodology for tracking climate change adaptation finance follows a context- andlocation-specific, conservative and granular approach. It tracks MDB financing only for thosecomponents and/or sub-components or elements or proportions of projects that directly contributeto or promote adaptation. It is important to note the following:a. The adaptation finance reported might not capture certain activities that might contributesignificantly to resilience but cannot always be tracked in quantitative terms (for example,
operational procedures that support adaptation to climate change) or might not be associatedwith costs (such as siting assets outside flood-prone areas).
b. Climate adaptation finance, as defined by the methodology, is not intended to capture the valueof an entire project or investment that may increase resilience as a result of specific adaptation
activities that take place as part of the project.
The joint methodology for tracking climate adaptation finance is presented in Annex C.2 of thisreport.
1.2 FINANCE FOR THE MITIGATION OF CLIMATE CHANGE
Climate change mitigation reduces, avoids, limits or sequesters greenhouse gas emissions to
mitigate climate change. However, not all activities that reduce greenhouse gas emissions are
eligible to be counted towards MDB mitigation finance, which is calculated based on a list ofactivities that are compatible with low-emission pathways.
Within the MDB/IDFC Common Principles for Climate Mitigation Finance Tracking8 methodology,
an activity can be classified as climate change mitigation where the activity, by avoiding or
reducing greenhouse gas emissions or increasing their sequestration, contributes substantiallyto the stabilisation of greenhouse gas concentrations in the atmosphere at a level that prevents
8

mdb_idfc_mitigation_common_principles_en.pdf (eib.org)

Overview of MDB methodologies fortracking climate finance | 1

dangerous anthropogenic interference with the climate system consistent with the long-term
temperature goal of the Paris Agreement.
The common principles recognise that a substantial contribution to climate change mitigation caninvolve the following three categories of climate change mitigation activities:
1. Negative- or very-low-emission activities, which result in negative, zero or very low greenhouse gas
emissions and are fully consistent with the long-term temperature goal of the Paris Agreement, forexample carbon sequestration in land use or some forms of renewable energy.
2. Transitional activities, which are still part of greenhouse gas-emissive systems, but are important
for and contribute to the transition towards a climate-neutral economy, such as energy efficiency
improvement in manufacturing that directly or indirectly uses fossil fuels.
3. Enabling activities, which are instrumental in enabling other activities to make a substantial
contribution to climate change mitigation, such as manufacture of very-low emission technologies.
There are fundamental differences between the tracking methodologies for climate change
adaptation activities and those for mitigation activities. For mitigation activities, a 1 tonne
reduction in CO2 emissions has the same impact regardless of where the activities take place. It
is therefore possible to define lists of typical activities that are deemed to support the path to lowcarbon development. However, adaptation activities are project- and location-specific, and they
respond to specific climate vulnerabilities. Therefore, unlike mitigation activities, it is not possible
to produce a stand-alone list of adaptation activities that can be used under all circumstances.
When comparing climate finance data, it is important to understand the differences andsimilarities. Table 1 summarises the key points in this regard.
Table 1. Comparison of methodologies for tracking adaptation and mitigation finance
CLIMATE CHANGE ACTIVITY
Item

Adaptation

Mitigation

General scope of
qualifying activity

The activity is typically a component or elementof a project, and in certain circumstances
an entire project, contributing to resilience(including s ocioeconomic resilience) or
adaptation to climate change.

This is typically a project (or component thereof)
that avoids, reduces or sequesters greenhousegas emissions, or promotes efforts to achievethese goals.

Basis for tracking

Adaptation finance tracking is incremental(component-based); it only takes into accountthose activities that specifically address
vulnerabilit y to climate change. Eligible
components are usually par ts of a larger
project, for example water-saving equipmentthat is part of a larger capital expenditureinvestment in an area vulnerable to increased
risk of drought.

Mitigation finance tracking is either project- orcomponent-based.
Project-based: If the whole project is considered
to be a mitigation activity, for example a typicalrenewable energy project or a project dedicatedto improving the energy efficiency of an existing
facility, then 100% of the project investment
is considered to be mitigation finance, whereapplicable criteria are met.
Component-based: Within a project, if only
a component of that project is a mitigation
activity, such as installation of energy efficientequipment that is part of a larger capital
expenditure investment, then the respective
fraction of the project is considered to be
mitigation finance.

2| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

CLIMATE CHANGE ACTIVITY
Item

Adaptation

Mitigation

Granular approach
to finance tracking

The adaptation finance methodology intends
to capture only the value of those activities
within the project that are aimed at addressing
specific climate vulnerabilities. It is not intended
to capture the value of the entire project that is
made more climate-resilient as a consequenceof specific adaptation activities within the
project.

A granular approach is used. Climate financemethodology intends to capture only the value ofthe project or its components that substantiallycontribute to climate change mitigation,
demonstrated using applicable metrics (suchas emission or energy intensity) subject to therequirements specified in the eligible list ofactivities.

Scale of impact

Local, regional, national or global.

Global.

Indicator(s) toquantify andcompare project
outcomes

Multiple (project- and context-specific) indicators Ultimately, the impact of all mitigation projects
are needed; the intended outcomes depend on can be assessed on the basis of their direct
the nature of the project.
greenhouse gas emissions reductions (such as
implementation of energy efficient equipment
in a building) or indirect emissions reductions(such as manufacture of electric vehicles
that enables reduction of emissions throughsubstitution of internal combustion engine
vehicles inthe market).

Qualification forclimate finance

Qualification is based on a three-step assessment
process, taking into account the climate change
vulnerability context and the specific project
intent to reduce climate vulnerabilities.

Climate financetracking

Following the three-step assessment process, a Financing of the eligible project activities isshare of the project components that are clearly classified as climate change mitigation financeand directly linked to the climate vulnerability where associated criteria are met.
context and contribute to climate change
resilience is classified as climate change
adaptation finance.

Qualification is based on a list of eligible
activities with associated screening criteria thatenable assessment for qualification for climate
mitigation finance. Overarching criteria also
apply.See Annex C.3 for further details.

Annex C.2 presents a full description of the adaptation methodology, while Annex C.3 contains an
excerpt of the mitigation methodology (with the full description being available within the MDB/IDFC Common Principles for Climate Change Mitigation Tracking). Both annexes will containexamples of the methodologies’ application to MDB projects in an array of sectors.
1.3 METHODOLOGY FOR CLIMATE CO-FINANCE
In 2015, the multilateral development banks began reporting on climate co-finance (CCF) flows inline with the harmonised definitions and indicators that had been established to estimate them.
Tracking of climate co-finance aims to estimate the volume of financial resources invested bypublic and private external parties alongside multilateral development banks for climate mitigation
and adaptation activities.
This approach presents sources of climate co-finance in the following categories: (i) othermultilateral development banks; (ii) IDFC member institutions, including bilateral and multilateral
members; (iii) other international public entities such as donor governments; (iv) contributions fromother domestic public entities such as recipient-country governments (for example, financing by
local counterparts); and (v) all private entities (defined as those with at least 50% of their shares
held privately), split into private direct mobilisation and private indirect mobilisation. This level of
granularity enables multilateral development banks to present an increasingly nuanced picture of
co-finance flows used for climate change interventions.

Overview of MDB methodologies fortracking climate finance | 3

In April 2017, the multilateral development banks published a reference guide (From Billions
to Trillions: Transforming Development Finance)9 to explain how they calculate and jointly reportprivate investment mobilisation beyond climate finance. The purpose of the methodology is torecognise and measure the private capital mobilised in MDB project activities. The guide outlines
the banks’ joint commitment to mobilising increased investment from the private sector andinstitutional investors. Total financing of climate activity includes climate co-finance (the amountof financial resources that external entities contribute). The multilateral development banks are
implementing the definitions and recommendations of the MDB Taskforce on Private Investment
Mobilisation for tracking the private share of climate co-finance. This methodology focuses on
assessing the private finance mobilised by an MDB, on a project-by-project basis, such as private
direct mobilisation and private indirect mobilisation.10 The 2021 Joint Report on MDBs’ Climate
Finance follows the agreed terminology11 and the following chapters show two different elements
of private finance mobilisation: private direct mobilisation and private indirect mobilisation. Added
together, these two forms of mobilisation represent the private share of climate co-finance.
Figure 2. Total activity financing, by type of finance

Private direct
mobilisation

Private indirect
mobilisation

Private co-financing

MDB own accountExternal
resources
managedby MDB

Public co-finance

MDB climate finance9	
http://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva
teInvestmentMobilizationMethodologyReferenceGuide.pdf
10 h ttp://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva
teInvestmentMobilizationMethodologyReferenceGuide.pdf
11	See Annex C.1 for definitions of “private direct mobilisation”, “private indirect mobilisation” and “public direct mobilisation”.

4| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE2MDB CLIMATE FINANCE IN LOW- AND
MIDDLE-INCOME ECONOMIES, 2021
2.1 MDB CLIMATE FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIESIn 2021, the multilateral development banks committed $50.666 billion to low-income and middleincome economies, thus surpassing the annual expectations of $50 billion set in the joint MDBHigh Level Statement of 2019. Of the $50.666 billion of climate finance committed to low-income
and middle-income economies, $47.24 billion was from the MDBs’ own account and $3.426 billion
from external resources that were channelled through the banks. Mitigation finance committed
to low- and middle-income economies totalled $33.055 billion, or 65%, while adaptation financetotalled $17.611 billion, or 35%.
Sources of MDB climate finance are split between the multilateral development banks’ own
accounts and the external resources channelled through and managed by them. External
resources include trust-funded operations, such as those funded by bilateral agencies anddedicated climate finance funds such as the Climate Investment Funds (CIF), Green Climate Fund
(GCF) and climate-related funds under the Global Environment Facility (GEF), EU blending facilities
and others. As bilateral reporting may already cover some external resources, those managed by
the multilateral development banks are presented separately from their own accounts.
Table 2. MDB climate finance in low- and middle-income economies, 2021 (in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

Own account

2 020

3 552

2 746

4 500

3 257

4 372

684

26 11047 240

MDB-managed
external
resources409

1 212*

-

276

115

448

-

1 879

3 426*

MDB climate
finance

2 429

4 764*

4 777

3 371

4 819

684

27 98950 666

2 746

Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the multilateral development banks’ own accounts and the MDBmanaged external resources.
3. “Total MDB operations” refers to the sum of the multilateral development banks’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Developmentof the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance ofInvestment and Export Credit (ICIEC).
5. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing
for three projects, amounting to $913 million, reported under ERUM is excluded from the MDB total amounts to avoid double
counting. Subtracting this amount from ADB’s total climate finance for low- and middle-income economies yields $3.851 billion.
(**) AIIB financing for ADB projects amounting to $1.421 billion was subtracted from total MDB operations to avoid double counting.

Table 3. MDB climate finance by scope in low- and middle-income economies, 2021 (in $ million)
MDB

Adaptation finance

AfDB

1 549

Mitigation finance880

MDB climate finance
2 429

ADB

1 326*

3 438*

4 764*

AIIB

651

2 096

2 746

EBRD

336

4 441

4 777

EIB

381

2 990

3 371

IDBG

1 688

3 131

4 819

IsDB

252

432

684

WBG

11 44816 54127 989Total

17 61133 05550 666

MDB climate finance in low- and middle-income economies, 2021 | 5

Notes:
1. In certain cases, multilateral development banks finance activities that have simultaneous benefits for mitigation and adaptation.
The 2021 figure of $762 million of climate finance with dual benefits is presented under the sub-heading of mitigation or adaptation
finance (based on the most relevant elements of the project) to simplify reporting (See Annex C.4). The AIIB reported $68 million, the
EBRD reported $27 million and the IDBG reported $668 million as dual-benefit projects. Note that the IDBG splits dual-benefit financeequally between adaptation and mitigation categories, while the EBRD allocates all dual-benefit activities to adaptation finance. See
Annex C.4 for further details.
2. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance ($20 million)
and climate mitigation ($893 million) finance from AIIB financing for three projects reported under ERUM is excluded from the MDB total
amounts to avoid double counting. Subtracting these amounts from ADB’s climate adaptation finance and climate mitigation financefor low- and middle-income economies yields $1.306 billion and $2.545 billion, respectively.

2.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER
IN LOW- AND MIDDLE-INCOME ECONOMIESThe multilateral development banks report on the nature of first recipients or borrowers12 of theirclimate finance (those to which finance will flow directly from the MDBs), differentiating between
public and private recipients or borrowers. Total commitment varies significantly between thebanks’ own accounts and MDB-managed external resources, as Table 4 illustrates. Table 5 shows
the split by type of recipient or borrower for the banks’ own accounts and for MDB-managed
external resources.
Table 4. MDB climate finance by source of funds and by type of recipient or borrower in low- and middle-income
economies, 2021 (in $ million)
Type of recipient or borrower
Public recipient/borrower

MDB own account

MDB-managed external resources

37 561

2 649*

Private recipient/borrower

9 679

777

Total

47 2403 426(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects reported under ERUM, amounting to $913 million, is excluded from the MDB total amounts for public recipient/borrower toavoid double counting.

Table 5. MDB climate finance by type of recipient or borrower in low- and middle-income economies, 2021
(in $ million)
MDB

Private

AfDB

510

Public
1 919

ADB

459*

4 305*

AIIB

374

2 373

EBRD

2 807

1 970

EIB

582

2 789

IDBG

833

3 986

IsDB

-

684

WBG

4 891

23 098Total

10 45640 210(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for thethree projects that ADB reported under ERUM, amounting to $913 million, is excluded from the MDB total amount for public recipient/borrower to avoid double counting. Subtracting this amount from ADB’s climate finance for public recipient/borrower in low- and middleincome economies yields $3.392 billion.

12

6

See Annex C.1 for the definitions of public and private recipients or borrowers.

| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN LOW- AND MIDDLEINCOME ECONOMIESFor the eighth consecutive year, the multilateral development banks reported climate finance by
the types of financial instrument (see Annex C.5 for definitions). They reported that 71% of climate
finance for low- and middle-income economies was committed through investment loans, followed
by grants and policy-based financing. Illustrative examples of various types of instrument arepresented in tables in Annex C.5.
Table 6. MDB climate finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
Instrument type

Climate finance

EquityGrant
Guarantee
Investment loan
Line of credit
Policy-based financing
Results-based financing
Other instruments
Total

830
4 259
1 651
36 039*
171
4 000
2 114
1 602
50 666

Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the categoryof investment loans.
3. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources under management, climate financefrom AIIB financing for three projects reported under ERUM, amounting to $913 million, is excluded from the investment loan
amount to avoid double counting.

Figure 3. MDB climate finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
2%
TOTAL CLIMATE FINANCE BY INSTRUMENT

4% 3%
0.3%

$50 666 million

9%

8%

3%

TOTAL

$50 666 million

Equity $830 million
Grant $4 259 million
Guarantee $1 651 million
Investment loan $36 039 million
Line of credit $171 million
Policy-based financing $4 000 million
Results-based financing $2 114 million
Other instruments $1 602 million

71%

MDB climate finance in low- and middle-income economies, 2021 | 7

2.1.3 MDB CLIMATE FINANCE BY REGION IN LOW- AND MIDDLE-INCOME
ECONOMIES
Multilateral development banks’ climate finance commitments are grouped by region below.13
Table 7. MDB climate finance by region in low- and middle-income economies, 2021 (in $ million)
RegionClimate financeCentral Asia

1 929*

East Asia and the Pacific

5 960

Europe: EU

1 170

Europe: Non-EU

5 272

Latin America and the Caribbean

9 820

Middle East and North Africa

4 071

South Asia

8 159*

Sub-Saharan Africa

12 760Multi-regional

1 524

Total

50 666(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects reported under ERUM, amounting to $108 million and $805 million, is excluded from the Central Asia and South Asia total
amounts, respectively, to avoid double counting.

Figure 4. MDB climate finance by region in low- and middle-income economies, 2021 (in $ million)

TOTAL CLIMATE FINANCE BY REGION

3% 4%$50 666 million
12%
2%

25%
10%

TOTAL

$50 666 million

16%

20%

Central Asia $1 929 million
East Asia and the Pacific $5 960 million
Europe: EU $1 170 million
Europe: Non-EU $5 272 million
Latin America and the Caribbean $9 820 million
Middle East and North Africa $4 071 million
South Asia $8 159 million
Sub-Saharan Africa $12 760 million
Multi-regional $1 524 million

8%

2.2 MDB ADAPTATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
In 2021, a total of $19.187 billion was committed to climate change adaptation finance, with
$17.611 billion, or 92%, committed to low- and middle- income economies, thus surpassing the
expected collective delivery of increasing adaptation finance to $18 billion, set in the joint MDBHigh Level Statement of 2019. The data reported corresponds to the incremental costs of projectcomponents, sub-components, or elements, or proportions of projects, which are considered to
be inputs to an adaptation process and are intended to reduce vulnerability to climate change andbuild resilience to it.

13

8

See Table B.1 for regional groupings.

| 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 8 presents the 2021 adaptation figures by bank for low- and middle-income economies,
with a breakdown of climate adaptation finance committed by the multilateral development banksfrom their own accounts and from MDB-managed external resources in low- and middle-income
economies.
Table 8. MDB adaptation finance by MDB according to source of funds in low- and middle-income economies,
2021 (in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

MDB own account

1 325

1 278

651

302

328

1 655

252

10 626

16 417

MDB-managed
external resources

224

48*

-

34

54

33

822

1 194*

1 549

1 326*

336

381

1 688

11 44817 611*

Total

651

252

(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects, amounting to $20 million, reported under ERUM is excluded from the MDB total adaptation amount to avoid
double counting.

Table 9 shows a breakdown by type of recipient or borrower.
Table 9. MDB adaptation finance by MDB and by type of recipient or borrower in low- and middle-income economies,
2021 (in $ million)
MDB

Private

AfDB

275

Public
1 274

ADB

70

1 256*

AIIB

1

650

EBRD

54

282

EIB

45

336

IDBG

56

1 632

IsDB

-

252

WBG

37

11 411

Total

538

17 073*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects, amounting to $20 million, reported under ERUM is excluded from the MDB total adaptation amount toavoid double counting. Subtracting this amount from ADB’s climate adaptation finance for public recipient borrower for low- and middleincome economies yields $1.237 billion.

Table 10 breaks down MDB adaptation finance by the type of instrument. The multilateraldevelopment banks reported that 63% of adaptation finance for low-and middle-income economies
was committed through investment loans, followed by grants and policy-based financing.
Table 10. MDB adaptation finance by MDB and by type of instrument in low- and middle-income economies, 2021
(in $ million)
Instrument type

Adaptation finance

Equity

22

Grant

2 631

Guarantee
Investment loan
Line of credit
Policy-based financing

145
11 055*40
1 490

Results-based financing

1 179

Other instruments

1 050

Total

17 611*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $20 million, is excluded from the investment loan amount to avoid
double counting.

MDB climate finance in low- and middle-income economies, 2021 | 9

Table 11 shows total adaptation finance by region. The largest proportions of adaptation finance inlow- and middle-income economies were in the following regions: Sub-Saharan Africa, South Asiaand Latin America and the Caribbean.
Table 11. MDB adaptation finance by region in low- and middle-income economies, 2021 (in $ million)
RegionAdaptation financeCentral Asia

485*

East Asia and the Pacific

2 308

Europe: EU

98Europe: Non-EU

542

Latin America and the Caribbean

2 984

Middle East and North Africa

1 100South Asia

3 034*

Sub-Saharan Africa

6 847

Multi-regional

214

Total

17 611(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South
Asia climate adaptation amounts, respectively, to avoid double counting.

Figure 5. MDB adaptation finance by region in low- and middle-income economies, 2021 (in $ million)
1%
TOTAL ADAPTATION FINANCE BY REGION3%$17 611 million
13%
1%
3%

39%
TOTAL

$17 611 million

17%

Central Asia $485 million
East Asia and the Pacific $2 308 million
Europe: EU $98 million
Europe: Non-EU $542 million
Latin America and the Caribbean $2 984 million
Middle East and North Africa $1 100 million
South Asia $3 034 million
Sub-Saharan Africa $6 847 million
Multi-regional $214 million

6%17%

Table 12 reports MDB adaptation finance by sector, with 26% in energy, transport and other built
environment and infrastructure, followed by cross-cutting operations with 17%, and 15% in water
and wastewater systems.
Table 12. MDB adaptation finance by sector in low- and middle-income economies, 2021 (in $ million)
Sector group
Coastal and riverine infrastructure

Adaptation finance
532

Crop and food production

1 699

Cross-cutting sectors

3 052

Energy, transport and other built environment and infrastructure

4 547*

Financial services

1 832

Industry, manufacturing and trade

32

Information and communications technology

176

Institutional capacity support or technical assistance

10 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2 400*

Sector group

Adaptation finance

Other agricultural and ecological resources

675*

Water and wastewater systems

2 666*

Total

17 611(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $20 million, is excluded from relevant sectors to avoid double counting.

Figure 6. MDB adaptation finance by sector in low- and middle-income economies, 2021 (in $ million)

TOTAL ADAPTATION FINANCE BY SECTOR

3%

15%

$17 611 million

10%

Coastal and riverine infrastructure $532 million
Crop and food production $1 699 million
Cross-cutting sectors $3 052 million
Energy, transport and other built environment
and infrastructure $4 547 million
Financial services $1 832 million
Industry, manufacturing and trade $32 million
Information and communications technology $176 million
Institutional capacity support or
technical assistance $2 400 million

4%
17%
TOTAL

$17 611 million

14%

1%
0%

10%

26%

Other agricultural and ecological resources $675 million
Water and wastewater systems $2 666 million

Adaptation finance by region, for low- and middle-income economies, with a further breakdown by
sector, is presented in Table 13.
Table 13. MDB adaptation finance by sector and region in low- and middle-income economies, 2021 (in $ million)
Central East Asia Europe: Europe: Latin
Middle SouthAsia
and theEU
Non-EU America East and Asia
Pacific
and the North
CaribAfrica
bean

SubMultiSaharan regional
AfricaTotal

Coastaland riverine
infrastructure

-

33

-

-

79

-

164

179

76

532

Crop and foodproduction

42

51

-

38

60

257

270

975

7

1 699

Cross-cutting
sectors

139

568

3

36

511

247

477

1 065

5

3 052

Energy,transport andother built
environment andinfrastructure

210*

611

74

332

399

94

695*

2 132

1

4 547

Financialservices

1

270

-

19

193

229

399

691

32

1 832

Industry,
manufacturing
and trade

0

-

-

2

-

13

-

13

4

32

Information andcommunications
technology

7

-

-

4

14

8

18

126

-

176

Institutional
capacity support
or technicalassistance

12

299

-

7

1 279

85

373*

314

32

2 400

MDB climate finance in low- and middle-income economies, 2021 | 11

Central East Asia Europe: Europe: Latin
Middle SouthAsia
and theEU
Non-EU America East and Asia
Pacific
and the North
CaribAfrica
bean

SubMultiSaharan regional
Africa

Total

Other
agriculturaland ecologicalresources

34

37

-

40

226

6

53*

227

52

675

Water andwastewater
systems

41

439

20

64

223

162

586*

1 126

4

2 666

Total

485

2 308

98

542

2 984

1 100

3 034

6 847

214

17 611(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB
financing for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South
Asia climate adaptation amounts, respectively, to avoid double counting.

2.3 MDB MITIGATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
In 2021, the multilateral development banks reported a total of $62.530 billion in financial
commitments for the mitigation of climate change, with $33.055 billion, or 53%, committed to lowincome and middle-income economies. Data reported corresponds to the financing of mitigation
projects or of the components, sub-components, or elements, or proportions of projects thatprovide mitigation benefits (rather than reporting the entire project cost).
Table 14 provides a breakdown of climate mitigation finance committed by the multilateraldevelopment banks during 2021 from MDB own-account and external resources in low- andmiddle-income economies.
Table 14. MDB mitigation finance by MDB and source of funds in low- and middle-income economies, 2021
(in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

MDB ownaccount

695

2 274

2 096

4 198

2 929

2 716

432

15 48330 823

MDB-managed
external
resources

185

1 164*

-

243

61

415

-

1 057

2 232*

Total

880

3 438*

2 096

4 441

2 990

3 131

432

16 54133 055*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects, amounting to $893 million, reported under ERUM is excluded from the MDB total mitigation amount to avoid
double counting.

Table 15 shows a breakdown by type of recipient or borrower.
Table 15. MDB mitigation finance economies by MDB and by type of recipient or borrower in low- and middleincome, 2021 (in $ million)
MDB

PrivatePublic

AfDB

235

645

ADB

389

3 049*

AIIB

373

1 723

EBRD

2 753

1 687

EIB

537

2 453

12 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEMDB

PrivatePublic

IDBG

777

2 354

IsDB

-

432

WBG

4 854

11 687

Total

9 918

23 137*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects, amounting to $893 million, reported under ERUM is excluded from the MDB total mitigation amount to avoid double
counting. Subtracting this amount from ADB’s climate adaptation finance for public recipient borrowers for low- and middle-income
economies yields $2.155 billion.

Table 16 breaks down MDB mitigation finance by type of instrument. The multilateral developmentbanks reported that 76% of total mitigation finance for low -and middle- income economies wascommitted through investment loans, followed by policy-based financing.
Table 16. MDB mitigation finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
Instrument type

Mitigation finance

Equity

807

Grant

1 628

Guarantee

1 506

Investment loan

24 985*

Line of credit

131

Policy-based financing

2 510

Results-based financing

936

Other instruments

552
33 055*Total(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects reported under ERUM, amounting to $893 million, is excluded from the investment loan amount to avoid
double counting.

Figure 7. MDB mitigation finance by type of instrument in low- and middle-income economies, 2021 (in $ million)
2% 2%
TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT

0.40%

8%

3%

5%

TOTAL

$33 055 million$33 055 million
5%Equity $807 million
Grant $1 628 million
Guarantee $1 506 million
Investment loan $24 985 million
Line of credit $131 million
Policy-based financing $2 510 million
Results-based financing $936 million
Other instruments $552 million

76%

MDB climate finance in low- and middle-income economies, 2021 | 13

Table 17 shows total mitigation finance by region. The largest proportions of mitigation finance inlow- and middle-income economies were in the following regions: Latin America and the Caribbean,
Sub-Saharan Africa, and South Asia.
Table 17. MDB mitigation finance by region in low- and middle-income economies, 2021 (in $ million)
RegionMitigation financeCentral Asia

1 444*

East Asia and the Pacific

3 652

Europe: EU

1 073

Europe: Non-EU

4 730

Latin America and the Caribbean

6 837

Middle East and North Africa

2 970

South Asia

5 125*

Sub-Saharan Africa

5 914

Multi-regional

1 310
33 055*Total(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.

Figure 8. MDB mitigation finance by region in low- and middle-income economies, 2021 (in $ million)

4%

TOTAL MITIGATION FINANCE BY REGION

4%$33 055 million
11%

18%

3%

TOTAL

$33 055 million

14%

16%

9%

Central Asia $1 444 million
East Asia and the Pacific $3 652 million
Europe: EU $1 073 million
Europe: Non-EU $4 730 million
Latin America and the Caribbean $6 837 million
Middle East and North Africa $2 970 million
South Asia $5 125 million
Sub-Saharan Africa $5 914 million
Multi-regional $1 310 million

21%

Table 18 reports the multilateral development banks’ mitigation finance in low- and middle-income
economies by sector with 29% in energy, followed by 21% in transport.
Table 18. MDB mitigation finance by sector in low- and middle-income economies, 2021 (in $ million)
RegionEnergyMining and metal production for climate action

Mitigation finance
9 676*
18

Manufacturing

1 649

Agriculture, forestry, land use and fisheries

2 411

Water supply and wastewater

1 278*

Solid waste management

1 447*

Transport

6 704*

Buildings, public installations and end-use energy efficiency

2 532

Information and communications technology (ICT) and digital technologies

14 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

298

Research, development and innovation

30

Cross-sectoral activities

7 011

Total

33 055(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB
financing for three projects reported under ERUM, amounting to $893 million, is excluded from relevant sectors to avoid double counting.

Figure 9. MDB mitigation finance in low- and middle-income economies by sector, 2021 (in $ million)
TOTAL MITIGATION FINANCE BY SECTOR$33 055 million

21%

Energy $9 676 million
Mining and metal production forclimate action $18 million
Manufacturing $1 649 million
Agriculture, forestry, land use
and fisheries $2 411 million
Water supply and wastewater $1 278 million

29%

0.09%
1%
TOTAL

8%

$33 055 million
5%

0.05%

Information and communications technology(ICT) and digital technologies $298 million

7%

20%

4%

4%

Solid waste management $1 447 million
Transport $6 704 million
Buildings, public installations andend-use energy efficiency $2 532 million

Research, development and innovation $30 million
Cross-sectoral activities $7 011 million

Mitigation finance by region, with further breakdown by sectors, is presented in Table 19.
Table 19. MDB mitigation finance by sector and by region in low- and middle-income economies, 2021 (in $ million)
Central East Asia Europe: Europe:
Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean
Energy370

Mining andmetal production for climate
action

1 476
-

-

South
Asia

SubMultiSaharan regional
Africa

Total

347

1 677

1 044

485

1 601*

2 386

291

9 676

18

-

-

-

-

-

-

18

Manufacturing

52

46

8

824

68

282

88

147

134

1 649

Agriculture,
forestry, land
use andfisheries

100

405

0

86

755

58

146

704

156

2 411

Water supply
and wastewater

115

126

-

31

482

27

401*

80

16

1 278

Solid waste
management

19

408

-

189

120

78

381*

112

140

1 447

398*

426

88

1 413

617

1 726

1 454*

388

192

6 704

83

299

496

389

581

100

227

198

159

2 532

Transport
Buildings, public installations
and end-use
energy efficiency

MDB climate finance in low- and middle-income economies, 2021 | 15

Central East Asia Europe: Europe:
Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean
Informationand communications
technology(ICT) anddigitaltechnologies

-

-

-

6

225

-

South
Asia

-

SubMultiSaharan regional
Africa

Total

2

66

298

Research,development
and innovation

3

1

-

-

11

1

2

-

13

30

Cross-sectoral
activities

304

466

116

114

2 933

213

825

1 898

143

7 011

1 444

3 652

1 073

4 730

6 837

2 970

5 125

5 914

1 310

33 055Total(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.

2.4 CLIMATE CO-FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2021
The multilateral development banks’ climate co-finance is based on their harmonised definitions,which can be consulted in Section 1.3.
Table 20 shows 2021 climate co-finance flows as reported by each institution, segmented by thesource of co-financing. These figures are the best estimate of resource flows based on information
available at the time of board approval and/or commitment to each project. In some cases, two
or more banks jointly finance a project, which results in some overlap between the gross cofinance figures reported by the different organisations. Table 21 shows climate co-finance flows
by adaptation and mitigation for low- and middle-income economies. In order to avoid double
counting, the last column of Tables 21 and 22 nets out potentially double-counted co-financing
by considering only the proportion of co-financing for every project that features co-financing fromanother multilateral development bank.
In the reference guide, the multilateral development banks emphasise the differences in how
various financial instruments, including guarantees, are tracked and reported. By mitigating thepolitical and commercial risks of private and publicly owned investments, guarantees can facilitate
access to capital for climate finance activities. This can enhance the mobilisation of resources for a
specific project or in support of specific government policies.
For consistency with the agreed MDB methodology on tracking and reporting mobilised private
capital, the tracking and reporting of guarantees as detailed in this report assumes: (i) a distinction
in tracking and reporting between commercial guarantees and non-commercial guarantees;14 and(ii) causality between the guarantee and the underlying investment covered (in other words, in theabsence of the guarantee, the underlying investment would be unlikely to occur). For this reason,
the gross exposure from the guarantee issuance and the underlying investment may be reported
separately under the banks’ own account and private co-finance, while the best effort is made tominimise double counting.

14

In the context of this report, non-commercial risk guarantees are defined as insurance or guarantee instruments covering investors against
perceived political risks including, but not limited to, the risks of transfer restriction (including inconvertibility), expropriation, war and civil
disturbance, breach of contract, and failure to honour financial obligations, and may provide credit enhancement and improve ratings forcapital market transactions. Commercial or credit-risk guarantees refer to instruments covering all other risks not included above.

16 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 21 reflects the 2021 climate co-finance flows, including the direct and indirect mobilisation
attributed to guarantees. The guarantee exposure of each multilateral development bank has beenshown as “own account” in Tables 2, 22, 42 and 64.
Table 20. Climate co-finance flows by MDB and by thematic focus in low- and middle-income economies, 2021
(in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total
climateco-finance

Correctionformultiple
MDB
financing

Mitigation
finance

1 935

2 785

704

8 752

6 133

2 131

5 127

8 566

36 13328 844Adaptation
finance

4 034

2 388

3 773

312

797

229

1 756

5 063

18 35114 759

Total

5 969

5 173

4 477

9 063

6 929

2 360

6 883

13 62954 48443 603

Table 21. Climate co-finance flows by MDB and by source in low- and middle-income economies, 2021 (in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total
climateco-finance

Correctionformultiple
MDB
financing

-

-

-

-

329

435

-

4 656

5 420

5 420

4 067

1 158

12 536

12 536

83

72

3 610

2 753

Public direct
mobilisation
Public co-finance
Other MDBs

1 913

83

2 043

2 068

1 203

-

IDFC
members

561

556

73

580

905

780

Other
international
public

234

55

3

114

717

-

2 733

943

4 799

1 485

Other
domestic
public

2 474

3 523

2 358

969

2 409

205

-

85

12 022

8 407

Total private mobilisation
Privatedirectmobilisation

-

98

-

449

55

591

-

3 421

4 614

4 614

Privateindirectmobilisation

787

859

-

4 883

1 311

349

-

3 294

11 484

8 389

5 969

5 173

4 477

9 063

6 929

2 360

6 883

13 62954 48443 603Total

MDB climate finance in low- and middle-income economies, 2021 | 17

3
MDB CLIMATE FINANCE IN HIGH-INCOME
ECONOMIES, 2021
3.1 MDB CLIMATE FINANCE IN HIGH-INCOME ECONOMIESIn 2021, the multilateral development banks committed $31.051 billion to high-income
economies. Mitigation finance committed to high-income economies totalled $29.475 billion, while
adaptation finance totalled $1.576 billion.
Table 22 shows MDB climate finance for high-income economies. Of the $31.051 billion ofclimate finance committed to high-income economies, $30.862 billion was from the multilateraldevelopment banks’ own accounts and $189 million from external resources that were channelled
through them.
Table 22. MDB climate finance in high-income economies, 2021 (in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

1 594

28 055

659

0

465

30 862

5

79

79

-

26

189

1 599

28 134

738

0

490

31 051

Own account

-

1

88

MDB-managed
external resources

-

1

-

MDB climate
finance-2

88Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the multilateral development banks’ own accounts and the MDBmanaged external resources.
3. “Total MDB operations” refers to the sum of the multilateral development banks’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Developmentof the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance ofInvestment and Export Credit (ICIEC).

Table 23 shows the multilateral development banks’ climate finance for high-income economies foradaptation and mitigation.
Table 23. MDB climate finance by scope in high-income economies, 2021 (in $ million)
MDB

Adaptation finance

Mitigation finance

MDB climate finance

AfDB

-

-

-

ADB

2

0

2

AIIB

-

88

88

EBRD

-

1 599

1 599

EIB

1 191

26 94328 134

IDBG

260

478

738

IsDB

0

-

0

WBG

123

367

490

Total

1 576

29 47531 051

MDB climate finance in high-income economies, 2021 | 19

3.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER IN HIGHINCOME ECONOMIESThe multilateral development banks report on the nature of first recipients or borrowers15 of theirclimate finance (those to which finance will flow directly from the MDBs), differentiating between
public and private recipients or borrowers. Total commitment varies significantly between thebanks’ own accounts and MDB-managed external resources, as Table 25 illustrates. Table 24
shows the split by type of recipient or borrower for the banks’ own accounts and for MDB-managed
external resources.
Table 24. MDB climate finance by source of funds and by type of recipient or borrower in high-income economies,
2021 (in $ million)
Type of recipient or borrower

MDB own account

MDB-managed external resources

Public recipient/borrower

19 11867

Private recipient/borrower

11 744122

Total

30 862

189

Table 25. MDB climate finance by type of recipient or borrower of recipient or borrower in high-income economies,
2021 (in $ million)
MDB

PrivatePublic

AfDB

-

-

ADB

-

2

AIIB

88

-

EBRD

1 473

125

EIB

9 702

18 431

IDBG

251

487

IsDB

-

0

WBG

351

139

Total

11 86619 185(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s climate finance for low- and middle-income economies from public resources is$3.392 billion. This means that ADB’s total climate finance from public resources is $3.394 billion considering all the economies.

15 See Annex C.1 for the definitions of public and private recipients or borrowers.

20 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

3.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN HIGH-INCOME
ECONOMIESThe multilateral development banks reported that 90% of high-income economies’ climate financewas committed through investment loans, followed by lines of credit, which account for 4% of thetotal. Illustrative examples of various types of instrument are presented in tables in Annex C.5.
Table 26. MDB climate finance by type of instrument in high-income economies, 2021 (in $ million)
Instrument type

Climate finance

Equity

454

Grant

27

Guarantee

744

Investment loan

27 863

Line of credit

1 278

Policy-based financing

38

Results-based financing

3

Other instruments

645

Total

31 051

Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the categoryof investment loans.

Figure 10. MDB climate finance by type of instrument in high-income economies, 2021 (in $ million)
0.01% 2% 1% 0.09%
2%
0.12%

TOTAL CLIMATE FINANCE BY TYPE OF INSTRUMENT$31 051 million

4%

TOTAL

$31 051 million

Equity $454 million
Grant $27 million
Guarantee $744 million
Investment loan $27 863 million
Line of credit $1 278 million
Policy-based financing $38 million
Results-based financing $3 million
Other instruments $645 million

90%

MDB climate finance in high-income economies, 2021 | 21

3.1.3 MDB CLIMATE FINANCE BY REGION IN HIGH-INCOME ECONOMIES
Table 27 shows total climate finance by region. The largest proportions of climate finance were in
the East Asia and the Pacific region.
Table 27. MDB climate finance by region, in high-income economies 2021 (in $ million)
RegionClimate financeCentral Asia
East Asia and the Pacific
Europe: EU
Europe: Non-EU
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa
Multi-regional

22
29 061
282
957
17
3
710

Total

31 051Figure 11. MDB climate finance by region high-income economies, 2021 (in $ million)
0.009% 2%
0.05%
0.9%
3%

0.07%
TOTAL CLIMATE FINANCE BY REGION$31 051 million

East Asia and the Pacific $22 million
Europe: EU $29 061 million
Europe: Non-EU $282 million
Latin America and the Caribbean $957 million
Middle East and North Africa $17 million
Sub-Saharan Africa $3 million
Multi-regional $710 million

TOTAL$31 051 million

94%

3.2 MDB ADAPTATION FINANCE IN HIGH-INCOME ECONOMIES, 2021
Of the $19.187 billion committed to adaptation finance in 2021, $1.576 billion, or 8%, wascommitted to high-income economies.
Table 28 presents the 2021 adaptation figures from the multilateral development banks for highincome economies, with a breakdown of climate adaptation finance committed by them from theirown accounts and from MDB-managed external resources.
Table 28. MDB adaptation finance by MDB according to source of funds in high-income economies, 2021 (in $ million)

MDB ownaccount
MDB-managed
external
resources
Total

AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

-

1

-

-

1 191

259

-

97

1 548

-

1

-

-

-

1

-

26

28

-

2

-

-

1 191

257

-

123

1 576

Table 29 shows a breakdown by type of recipient or borrower.

22 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 29. MDB adaptation finance by MDB and by type of recipient or borrower in high-income economies, 2021
(in $ million)
MDB

PrivatePublic

AfDB

-

-

ADB

-

AIIB

-

-

EBRD

-

-

EIB

127

1 064

IDBG

3

257

2

IsDB

-

0

WBG

-

123

Total

130

1 446

(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s adaptation finance for low- and middle-income economies from public resources
is $1.236 billion. This means that ADB’s total climate finance from public resources is $1.238 billion considering all the economies.

Table 30 breaks down MDB adaptation finance by the type of instrument. The multilateraldevelopment banks reported that 94% of adaptation finance in high-income economies wascommitted through investment loans.
Table 30. MDB adaptation finance by MDB and by type of instrument in high-income economies, 2021 (in $ million)
Instrument type

Adaptation finance

Equity

16

Grant

17

Guarantee-

Investment loan

1 477

Line of credit

29

Policy-based financing

30

Results-based financing

3

Other instruments

4

Total

1 576

Figure 12. MDB adaptation finance by type of instrument in high-income economies, 2021 (in $ million)2%2%

0.2% 0.2% 1% 1%
TOTAL ADAPTATION FINANCE BY TYPE OF INSTRUMENT$1 576 million

TOTAL$1 576 million

Equity $16 million
Grant $17 million
Investment loan $1 477 million
Line of credit $29 million
Policy-based financing $30 million
Results-based financing $3 million
Other instruments $4 million

94%

Table 31 shows total adaptation finance in high-income economies by region. The largest
proportions of adaptation finance were in Europe: EU and Latin America and the Caribbean.

MDB climate finance in high-income economies, 2021 | 23

Table 31. MDB adaptation finance by region in high-income economies, 2021 (in $ million)
RegionAdaptation financeCentral Asia-

East Asia and the Pacific2Europe: EU

1 201

Europe: Non-EU-

Latin America and the Caribbean

273

Middle East and North Africa-

South Asia-

Sub-Saharan Africa

3

Multi-regional

98

Total

1 576

Figure 13. MDB adaptation finance in by region high-income economies, 2021 (in $ million)
0.13%

0.19%

TOTAL ADAPTATION FINANCE IN BY REGION$1 576 million

6%

East Asia and the Pacific $2 million
Europe: EU $1 201 million
Latin America and the Caribbean $273 million
Sub-Saharan Africa $3 million
Multi-regional $98 million

17%

TOTAL

$1 576 million

76%

Table 32 reports MDB adaptation finance for high-income economies by sector, with 30% in
institutional capacity support or technical assistance, followed by 28% in energy, transport andother built environment and infrastructure and 19% in water and wastewater systems.
Table 32. MDB adaptation finance by sector in high-income economies, 2021 (in $ million)
Sector group

Adaptation finance

Coastal and riverine infrastructure

162

Crop and food production

82

Cross-cutting sectors

35

Energy, transport and other built environment and infrastructure

438

Financial services

43

Industry, manufacturing and trade29

Information and communications technology-

Institutional capacity support or technical assistance

477

Other agricultural and ecological resources
Water and wastewater systems
Total

24 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

6
304
1 576

Figure 14. MDB adaptation finance by sector in high-income economies, 2021 (in $ million)

TOTAL ADAPTATION FINANCE BY SECTOR$1 576 million

10%
19%

5%

Coastal and riverine infrastructure $162 million
Crop and food production $82 million
Cross-cutting sectors $35 million
Energy, transport and other built
environment and infrastructure $438 million
Financial services $43 million
Industry, manufacturing and trade $29 million
Institutional capacity support
or technical assistance $477 million

2%

0.38%
TOTAL

$1 576 million
28%

Other agricultural and ecological resources $6 million
Cross-sectoral activities $304 million

30%
3%
2%

Adaptation finance by region, for high-income economies, with a further breakdown by sector, ispresented in Table 33.
Table 33. MDB adaptation finance by sector and by region in high-income economies, 2021 (in $ million)
Central East Asia Europe: Europe:
Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean

South
Asia

SubMultiSaharan regional
AfricaTotal

Coastaland riverine
infrastructure

-

-

-

-

86

-

-

-

77

162

Crop and foodproduction

-

1

78

-

3

-

-

-

0

82

Cross-cutting
sectors

-

1

-

-

31

-

-

3

1

35

Energy,transport andother built
environment
andinfrastructure

-

-

393

-

29

-

-

-

16

438

Financialservices

-

-

37

-

5

-

-

-

1

42

Industry,
manufacturing
and trade

-

-

27

-

-

-

-

-

2

29

Informationand communications
technology

-

-

-

-

-

-

-

-

Institutional
capacity
support or
technical
assistance

-

-

372

-

104

-

-

-

-

-

1

477

MDB climate finance in high-income economies, 2021 | 25

Central East Asia Europe: Europe:
Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean

South
Asia

SubMultiSaharan regional
Africa

Total

Other
agriculturaland ecologicalresources

-

-

6

-

-

-

-

-

-

6

Water andwastewater
systems

-

-

288

-

16

-

-

-

0

304

Total

-

2

1 201

-

273

-

-

3

98

1 576

3.3 MDB MITIGATION FINANCE IN HIGH-INCOME ECONOMIES, 2021
In 2021, the multilateral development banks reported a total of $63.530 billion in financial
commitments for the mitigation of climate change, with $29.475 billion, or 46%, committed tohigh-income economies.
Tables 34 provides a breakdown of climate change mitigation finance committed by the multilateraldevelopment banks from MDB own-account and external resources in high-income economies.
Table 34. MDB mitigation finance by MDB, according to source of funds in high-income economies, 2021
(in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total

MDB own account

-

-

88

1 594

26 864

400

-

367

29 314

MDB-managed
external resources

-

-

-

5

79

78

-

-

161

Total

-

-

88

1 599

26 943

478

-

367

29 475

Table 35 shows a breakdown by type of recipient or borrower.
Table 35. MDB mitigation finance by MDB and by type of recipient or borrower in high-income economies, 2021
(in $ million)
MDB

PrivatePublic

AfDB

-

-

ADB

-

AIIB

0
88

-

EBRD

1 473

125

EIB

9 575

17 367

IDBG

248

230

IsDB

-

-

WBG

351

16

Total

11 736

17 739(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, and excluding the three AIIB projects
reported under ERUM to avoid double counting, ADB’s climate finance for low- and middle-income economies (and all the economies)
from public resources is $2.156 billion.

Table 36 breaks down MDB mitigation finance by type of instrument. The multilateral developmentbanks reported that 90% of total mitigation finance was committed through investment loans inhigh-income economies.

26 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 36. MDB mitigation finance by MDB and by type of instrument in high-income economies, 2021 (in $ million)
Instrument type

Mitigation finance

Equity

438

Grant

10

Guarantee

744

Investment loan

26 386

Line of credit

1 249

Policy-based financing

8

Results-based financing

0

Other instruments

641

Total

29 475Figure 15. MDB mitigation finance by type of instrument in high-income economies, 2021 (in $ million)
0.03% 2% 1% 0.03%
3%

4%

TOTAL

$29 475 million

TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT$29 475 million

Equity $438 million
Grant $10 million
Guarantee $744 million
Investment loan $26 386 million
Line of credit $1 249 million
Policy-based financing $8 million
Other instruments $641 million

90%

Table 37 shows total mitigation finance by region. The largest proportions of mitigation finance forhigh-income economies were for Europe: EU.
Table 37. MDB mitigation finance by MDB and by region in high-income economies, 2021 (in $ million)
RegionCentral Asia

Mitigation finance-

East Asia and the Pacific
Europe: EU

20
27 860Europe: Non-EU

282

Latin America and the Caribbean

684

Middle East and North Africa

17South Asia-

Sub-Saharan Africa-

Multi-regional
Total

613
29 475

MDB climate finance in high-income economies, 2021 | 27

Figure 16. MDB mitigation finance by region in high-income economies, 2021 (in $ million)
1%2% 0.07%

2%

TOTAL MITIGATION FINANCE BY REGION$29 475 million

East Asia and the Pacific $20 million
Europe: EU $27 860 million
Europe: Non-EU $282 million
Latin America and the Caribbean $684 million
Middle East and North Africa $17 million
Multi-regional $613 million

TOTAL$29 475 million

95%

Table 38 reports MDB mitigation finance by sector in high-income economies, with 50% in energy,
followed by 32% in transport.
Table 38. MDB mitigation finance by sector in high-income economies, 2021 (in $ million)
RegionMitigation finance

Energy14 508Mining and metal production for climate action-

Manufacturing

240

Agriculture, forestry, land use and fisheries

136

Water supply and wastewater

177

Solid waste management

260

Transport

9 304

Buildings, public installations and end-use energy efficiency

874

Information and communications technology (ICT) and digitaltechnologies

59

Research, development and innovation

1 929

Cross-sectoral activities

1 988

Total

29 475Figure 17. MDB mitigation finance by sector in high-income economies, 2021 (in $ million)

TOTAL MITIGATION FINANCE BY SECTOR$29 475 million

7%

0.2%

7%
3%

TOTAL

$29 475 million

32%
0.46%

49%

Energy $14 508 million
Manufacturing $240 million
Agriculture, forestry, land use and fisheries $136 million
Water supply and wastewater $177 million
Solid waste management $260 million
Transport $9 304 million
Buildings, public installations andend-use energy efficiency $176 million
Information and communications technology (ICT)and digital technologies $59 million
Research, Development and Innovation $1 929 million
Cross-sectoral activities $1 988 million

1% 1% 1%28 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Mitigation finance by region for high-income economies, with a further breakdown by sector, ispresented in Table 39.
Table 39. MDB mitigation finance by sector and by region in high-income economies, 2021 (in $ million)
Central East Asia Europe: Europe:Asia
and theEU
Non-EU
Pacific

Latin
Middle South
SubMultiAmerica East and Asia Saharan regional
and theNorth
AfricaCaribbean Africa

Total

Energy-20

13 695

215

418

-

-

-

159

14 508Miningand metal
production forclimate action

-

-

-

-

-

-

-

-

-

-

Manufacturing

-

-

157

-

7

-

-

-

76

240

Agriculture,
forestry,land use andfisheries

-

-

108

-

3

8

-

-

17

136

Water
supply andwastewater

-

-

177

-

-

-

-

-

0

177

Solid waste
management

-

-

235

-

10

-

-

-

15

260

Transport

-

-

9 203

-

0

-

-

-

101

9 304

Buildings,
publicinstallations
and enduse energy
efficiency

-

-

671

-

34

-

-

-

169

874

Informationand communications
technology(ICT) anddigitaltechnologies

-

-

-

-

-

-

-

-

59

59

Research,development
and innovation

-

-

1 849

66

-

9

-

-

5

1 929

Cross-sectoral
activities

-

0

1 764

-

213

-

-

-

12

1 988

Total

-

20

27 860

282

684

17

-

-

613

29 475

3.4 CLIMATE CO-FINANCE IN HIGH-INCOME ECONOMIES, 2021
The multilateral development banks’ climate co-finance is based on their harmonised definitions,which can be consulted in Section 1.3.
Table 40 shows climate co-finance flows by adaptation and mitigation for high-income countries.
In order to avoid double counting, the last column of Tables 40 and 41 nets out potentially doublecounted co-financing by considering only the proportion of co-financing for every project thatfeatures co-financing from another multilateral development bank. These figures are also listed inin Table 45 in Annex A.1, alongside each bank’s own climate finance flows.

MDB climate finance in high-income economies, 2021 | 29

Table 40. Climate co-finance flows by MDB and by thematic focus in high-income economies, 2021 (in $ million)
AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total
climateco-finance

Correction for
multiple MDB
financing46 653

422

-

1 059

56 88956 036

619

5

-

41

665

665

47 272

427

-

1 100

57 55456 701

Mitigation finance

-

-

14

8 741

Adaptation finance

-

0

-

-

Total

-

0

14

8 741

Table 41. Climate co-finance flows by MDB and by source in high-income economies, 2021 (in $ million)
AfDB

ADB

AIIB

EBRD

-

-

-

-

Other MDBs

-

-

-

-

-

IDFC members

-

-

-

-

29

-

-

-

Other international
public----12 411--Other domestic
public

-

0

14

-

15 79817

Public direct
mobilisation

EIB

IDBG

75

0

IsDB

WBG

Total
climateco-finance

41

116

-

Correction for
multiple MDB
financing
116

Public co-finance
71

-

16

87

87

29

29

203

12 613

12 411--15 82815 828

Total private mobilisation
Private direct
mobilisation

-

-

-

6

944

389

-

241

1 580

1 580

Private indirect
mobilisation

-

-

-

8 665

18 01521-600

27 29926 649

Total

-

0

14

8 741

47 272

427

-

1 100

57 55456 70130 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX A
FURTHER DETAILED ANALYSIS OFMDB CLIMATE FINANCE DATAThe MDB 2021 climate finance commitments are presented in this year’s report in two separate
chapters: Chapter II) low-income and middle-income economies, a grouping that includes low,
lower-middle and upper-middle income economies, and Chapter III) high-income economies. Moredetailed analysis, data that cannot easily be split by income level such as Climate Finance for SIDS,
and global aggregated MDB data are provided in this annex. Data in this annex provide for datacomparability of this year’s report with previous years’ reports.
Figure 18 outlines MDB climate finance commitments by income group, showing low- and middleincome economies separately from high income economies. For data on climate finance in all
countries of operation including for earlier reporting periods back to 2015, refer to Annex B.
Figure 18. MDB climate finance by income levels of borrowing or recipient economies, 2019-21 (in $ billion)

40$ billion

30

30

28
23

19

20

20

20

14

18
12

10
6

6
3

3

4

3

0
2019

2020

Low-income

Lower-middle income

High-income

Multi-regional

2021

Upper-middle income

Figure 19. Total MDB climate finance commitments in all economies where the multilateraldevelopment banks operate, 2021 (in $ million)
100
913

88

2

490

738
1 599

%

75

50

2 429

3 851

2 746

4 777

28 1344 819

684

27 989

IDBG

IsDB

WBG

25

0

3 371

AfDB

ADB*

AIIB

Low-income and middle-income economies

EBRD

EIB

High-income economies

ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 31

Table 42 presents data on MDB climate finance and climate co-finance by type of recipient orborrower16.
Table 42. Total MDB climate finance and net climate co-finance by economy income group and by type ofrecipient or borrower, 2021 (in $ million)
MDB CLIMATE FINANCE
For low- and middle-income economies

For high-income economies

Mitigation

33 05529 475Adaptation

17 611

1 576

Public40 21019 185

Private10 456

11 866
CLIMATE CO-FINANCE

For low- and middle-income economies

For high-income economies

Mitigation

28 84456 036

Adaptation

14 759665

Public30 60028 471

Private13 00328 230Note: Public and private sector operations: This determination is based on the status of the first recipient or borrower of MDB finance. The firstrecipient or borrower is considered to be public when at least 50% of the stakes or shares of the recipient or borrower are publicly owned.

Table 43 shows MDB climate finance for all economies were they operate.
Table 43. MDB climate finance, 2021 (in $ million)
AFDB

ADB

AIIB

EBRD

EIB

IDBG

ISDB

WBG

TOTAL MDBs

For low- and middle-income economies
Own account

2 020

3 552

2 746

4 500

3 256

4 372

684

26 11047 240

MDB-managed
external
resources

409

1 212

-

276

115

448

-

1 879

3 426

1 594

28 055659

465

30 862

5

79

79

26

189

49%

49%

24%

For high-income economies
Own account-1

MDB-managed
external
resources-1

Climate financefrom MDB own
account, as apercentage of
MDB operations
from MDB own
account

44%

16

18%

88
-

29%

See Annex C.1 for the definitions of public and private recipients or borrowers.

32 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

0
-

31%

32%

36%

MDB climate
finance as apercentage
of total MDB
operations

AFDB

ADB

AIIB

EBRD

EIB

IDBG

ISDB

WBG

TOTAL MDBs

41%

21%

29%

50%

41%

25%

31%

32%

34%

Notes:
1. Numbers in the tables and figures in this report may not add up to the totals shown, due to rounding.
2. “MDB climate finance” refers to the sum of the climate finance from the MDBs’ own accounts and the MDB-managed external resources.
3. “Total MDB operations” refers to the sum of the MDBs’ own accounts and MDB-managed external resources.
4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development of
the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for Insurance of Investment
and Export Credit (ICIE
5. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB
financing for three projects, amounting to $913 million, reported under ERUM is excluded from the MDB total amounts to avoid
double counting. Subtracting this amount from ADB’s total climate finance yields $3.853 billion. 			
(**) AIIB financing for ADB projects amounting to $1.421 billion was subtracted from total MDB operations to avoid double counting.

ANNEX A.1 TOTAL MDB CLIMATE FINANCE
This annex presents aggregate information on climate finance in low-and middle-income
economies and high-income economies.
Table 44 shows MDB adaptation and mitigation finance for all economies where they operate.
Table 44. Total MDB climate finance, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES
MDB

Adaptation finance

Mitigation finance

MDB climate finance

AfDB
ADB

1 549

880

2 429

1 326

3 438

4 764

AIIB

651

2 096

2 746

EBRD

336

4 441

4 777

EIB

381

2 990

3 371

IDBG

1 688

3 131

4 819

IsDB

252

432

684

WBG

11 44816 54127 989Total

17 61133 05550 666*

FOR HIGH-INCOME ECONOMIES
MDB

Adaptation finance

Mitigation finance

MDB climate finance

AfDB

-

-

-

ADB

2

0

2

AIIB

-

88

88

EBRD

-

1 599

1 599

EIB

1 191

26 94328 134

IDBG

260

478

738

IsDB

0

-

0

WBG

123

367

490

Total

1 576

29 47531 051ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 33

The multilateral development banks report on the nature of first recipients or borrowers17 of theirclimate finance (those to which finance will flow directly from the MDBs), differentiating between public
and private recipients or borrowers. Total commitment varies significantly between the banks’ own
accounts and MDB-managed external resources, as Table 45 illustrates. Table 46 shows the split bytype of recipient or borrower for the banks’ own accounts and for MDB-managed external resources.
Table 45. Total MDB climate finance by source of funds and by type of recipient or borrower, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES
Type of recipient or borrower
Public recipient or borrower

MDB own account

MDB-managed external resources

37 561

2 649*

Private recipient or borrower

9 679

777

Total

47 240

3 426
FOR HIGH-INCOME ECONOMIES

Type of recipient or borrower

MDB own account

MDB-managed external resources

Public recipient or borrower

19 11867

Private recipient or borrower

11 744122

Total

30 862189(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for public recipient or borrower to avoid double
counting.

Table 46. Total MDB climate finance by type of recipient or borrower, 2021 (in $ million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIESMDBPrivateFOR HIGH-INCOME ECONOMIES

PublicPrivatePublic
-

AfDB

510

1 919

-

ADB

459

4 305

-

AIIB

374

2 373

88

EBRD

2 807

1 970

1 473

125

EIB

582

2 789

9 702

18 431

IDBG

833

3 986

251

487

IsDB

-

684

-

0

WBG

4 891

23 098

351

139

Total

10 45640 21011 86619 1852-(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for public recipient or borrower to avoid double
counting.

Illustrative examples of various type of instrument are presented in tables in Annex C.5.
Table 47. Total MDB climate finance by type of instrument, 2021 (in $ million)
Instrument typeFor low- and middle-income economies

For high-income economies

Equity

830

454

Grant

4 259

27

Guarantee

1 651

744

Investment loan

36 039*27 86317

See Annex C.1 for the definitions of public and private recipients or borrowers

34 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Line of credit
Policy-based financing

171

1 278

4 000

38

Results-based financing

2 114

3

Other instruments

1 602

645

Total

50 66631 051

Notes:
1. Annex C.5 defines the various types of instrument.
2. Other instruments include advisory services and bonds. Some multilateral development banks report eligible bonds under the category ofinvestment loans.
(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects, amounting to $913 million, reported under ERUM is excluded from the MDB amount for investment loan or borrower to avoid double
counting.

Table 48 shows MDB climate finance commitments by region.18
Table 48. Total MDB climate finance by region, 2021 (in $ million)
RegionFor low- and middle-income
economies

For high-income economies

Central Asia

1 929 *-

East Asia and the Pacific

5 960

22

Europe: EU

1 170

29 061

Europe: Non-EU

5 272

282

Latin America and the Caribbean

9 820

957

Middle East and North Africa

4 071

17

South Asia

8 159 *

Sub-Saharan Africa

12 760Multi-regional
Total

3

1 524

710

50 66631 051(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate finance from AIIB financing for threeprojects reported under ERUM, amounting to $108 million and $805 million, is excluded from the Central Asia and South Asia total amounts,
respectively, to avoid double counting.

MDB climate finance allocated to small island states and to least developed economies ispresented in Table 49.
Least developed economies are defined according to the UNFCCC criteria19 and presented basedon the UNFCCC list.20 Small island states are defined according to the Alliance of Small Island
States (AOSIS) list.21 Economies considered to be least developed economies and/or small islandstates are listed in Annex B.
Table 49. MDB climate finance for least developed economies and small island states, 2021 (in $ million)
Mitigation
finance

Adaptation
finance

Total

Least developed economies that are not small island states

3 721

5 227

8 948

Small island states that are not least developed economies

571

511

Least developed economies and small island economies

95

124

218

Note:
Some small island states are classified as high-income economies. However, income levels are not a relevant metric in this context, as they arehighly vulnerable to climate change and require vast support for resilience measures.

18

See Table B.1 for regional groupings.

19

https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-criteria.html

20

https://unfccc.int/topics/resilience/workstreams/national-adaptation-programmes-of-action/ldc-country-information

21

https://www.aosis.org/member-states
ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 35

ANNEX A.2 TOTAL MDB ADAPTATION FINANCE
Of the $81.717 billion invested in climate finance in 2021, a total of $19.187 billion was committed
to climate change adaptation finance.
Table 50 presents the 2021 adaptation figures for the multilateral development banks for all the
economies, with a breakdown of climate change adaptation finance committed by the banks fromtheir own accounts and from MDB-managed external resources by income economies.
Table 50. Total MDB adaptation finance in all the economies by MDB according to source of funds, 2021 (in US million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIESMDBMDB ownaccount

MDBmanaged
external
resources

AfDB

1 325

224

ADB

1 278

AIIB

651

EBRD

302

EIB
IDBG

FOR HIGH-INCOME ECONOMIESMDB ownaccount

MDBmanaged
external
resources

MDB ownaccount

MDBmanaged
external
resources

-

-

1 325

224

1 279

49

48
-

TOTAL

1

1

-

-

651

34

-

-

302

328

54

1 191

-

1 655

33

259

34

1 519

54

1

1 914

34

IsDB

252

-

0

-

252

WBG

10 626

822

97

26

10 724

847

-

Total

16 417

1 193.7*

1 548

28

17 966

1 221*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing forthree projects amounting to $20 million reported under ERUM is excluded from the MDB total adaptation amount to avoid double counting.

Table 51. Total MDB adaptation finance by MDB and by type of recipient or borrower, 2021 (in $ million)
MDB

Private

AfDB

275

Public
1 274

ADB

70

1 258*

AIIB

1

650

EBRD

54

282

EIB

173

1 400

IDBG

59

1 889

IsDB

-

252

WBG

37

11 534

Total

669

18 519(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing forthree projects amounting to $20 million reported under ERUM is excluded from the MDB total adaptation amount to avoid double counting.

Table 52 breaks down total MDB adaptation finance by the type of instrument. The multilateraldevelopment banks reported that 65% of adaptation finance for all economies was committed
through investment loans, followed by grants and policy-based lending.

36 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 52. Total MDB adaptation finance by type of instrument, 2021 (in $ million)
Instrument type

Total

Equity

38

Grant

2 648

Guarantee

145

Investment loan

12 531*

Line of credit

69

Policy-based financing

1 520

Results-based financing

1 182

Other instruments

1 054

Total

19 187(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $20 million, is excluded from the investment loan amount to avoid double counting.

Table 53 shows total adaptation finance for all the economies by region. The largest proportions ofadaptation finance were reported in the following regions: Sub-Saharan Africa, Latin America andthe Caribbean, and South Asia.
Table 53. Total MDB adaptation finance by region, 2021 (in $ million)
RegionCentral Asia
East Asia and the Pacific
Europe: EU
Europe: Non-EU
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa
Multi-regional
Total

Total
485*
2 310
1 299
542
3 256
1 100
3 034*
6 849
312
19 187

Table 54 reports total MDB adaptation finance by sector, with 26% in energy, transport and otherbuilt environment and infrastructure, followed by 16% in cross-cutting operations, and 15% inwater and wastewater systems.
Table 54. Total MDB adaptation finance by sector, 2021 (in $ million)
Sector group

Total

Coastal and riverine infrastructure
Crop and food production
Cross-cutting sectors
Energy, transport and other built environment and infrastructure
Financial services
Industry, manufacturing and trade
Information and communications technology
Institutional capacity support or technical assistance
Other agricultural and ecological resources
Water and wastewater systems
Total

694
1 781
3 087
4 985*
1 875
61
176
2 877*
681*
2 970*
19 187(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $20 million, is excluded from relevant sectors to avoid double counting.

ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 37

Adaptation finance by region, for all the economies, with a further breakdown by sector, ispresented in Table 55.
Table 55. Total MDB adaptation finance by sector and by region, 2021 (in $ million)
Central East Asia Europe: Europe: Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean
Coastaland riverine
infrastructure-

33

Crop and foodproduction

42

52

Cross-cutting
sectors

139

Energy,transport andother built
environment
andinfrastructure

-

South
Asia

SubMultiSaharan regional
Africa

Total

-

165

-

164

179

153

694

78

38

63

257

270

975

7

1 781

569

3

36

542

247

477

1 068

6

3 087

210*

611

467

332

428

94

695*

2 132

17

4 985

Financialservices

1

270

37

19

198

229

399

691

33

1 875

Industry,
manufacturing
and trade

0

-

27

2

-

13

-

13

6

61

Informationand communications
technology

7

-

-

4

14

8

18

126

-

176

Institutional
capacity
support or
technical
assistance

12

299

372

7

1 382

85

373*

314

33

2 877

Other
agriculturaland ecologicalresources

34

37

6

40

226

6

53*

227

52

681

Water andwastewater
systems

41

439

308

64

239

162

586*

1 126

4

2 970

485

2 310

1 299

542

3 256

1 100

3 034

6 849

312

19 187(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate adaptation finance from AIIB financing
for three projects reported under ERUM, amounting to $3 million and $17 million, is excluded from the Central Asia and South Asia climate
adaptation amounts, respectively, to avoid double counting.

ANNEX A.3 TOTAL MDB MITIGATION FINANCE
In 2021, the multilateral development banks reported $62.53 billion of climate change mitigation
finance committed to all the economies.
Table 56 provides a breakdown of climate change mitigation finance committed by the multilateraldevelopment banks from their own-account and external resources for all economies where they
operate.

38 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 56. Total MDB mitigation finance by MDB, according to source of funds, 2021 (in $ million)
FOR LOW- AND
MIDDLE-INCOME ECONOMIESMDBMDB ownaccount

FOR HIGH-INCOME ECONOMIESMDBmanaged
external
resources

MDB ownaccount

MDBmanaged
external
resources

-

TOTAL

MDB ownaccount

MDBmanaged
external
resources

AfDB

695

185

ADB

2 274

1 164

-

695

185

0

-

2 274

1 164

AIIB

2 096

-

2 184

-

EBRD

4 198

243

1 594

88

5

5 792

247

EIB

2 929

61

26 86479

29 793

140

IDBG

2 716

415

400

78

3 117

493

IsDB

432

-

-

-

432

-

WBG

15 483

1 057

367

-

15 851

1 057

Total

30 8232 232*

29 314161

60 137

2 393*(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing forthree projects amounting to $893 million reported under ERUM is excluded from the MDB total mitigation amount to avoid double counting.

Table 57 shows a breakdown by type of recipient or borrower.
Table 57. Total MDB mitigation finance by MDB and by type of recipient or borrower, 2021 (in $ million)
MDB

Private

AfDB

235

Public
645

ADB

389

3 049*

AIIB

461

1 723

EBRD

4 226

1 813

EIB

10 11219 821

IDBG

1 025

2 584

IsDB

-

432

WBG

5 205

11 703Total

21 65440 876(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects amounting to $893 million reported under ERUM is excluded from the MDB total mitigation amount to avoid double
counting.

Table 58 breaks down MDB mitigation finance by type of instrument. The multilateral developmentbanks reported that 82% of total mitigation finance was committed through investment loans,followed by guarantees and policy-based lending.
Table 58. Total MDB mitigation finance by type of instrument, 2021 (in $ million)
Instrument type

Total

Equity

1 245

Grant

1 638

Guarantee

2 250

Investment loan

51 371*

Line of credit

1 380

Policy-based financing

2 517

ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 39

Instrument type
Results-based financing

Total
936

Other instruments

1 193

Total

62 530(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $893 million, is excluded from the investment loan amount to avoid double counting.

Table 59 shows total mitigation finance by region. The largest proportions of mitigation financewere in the following regions: Europe: EU, Latin America and the Caribbean, Sub-Saharan Africa,and South Asia.
Table 59. Total MDB mitigation finance by region, 2021 (in $ million)
RegionTotal

Central Asia

1 444*

East Asia and the Pacific

3 673

Europe: EU

28 932Europe: Non-EU

5 011

Latin America and the Caribbean

7 521

Middle East and North Africa

2 987

South Asia

5 125*

Sub-Saharan Africa

5 914

Multi-regional

1 922

Total

62 530(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.

Table 60 reports MDB mitigation finance for all the economies by sector, with 39% going to theenergy sector, followed by transport with 26%.
Table 60. Total MDB mitigation finance by sector, 2021 (in $ million)
RegionTotal

Energy24 184*Mining and metal production for climate action
Manufacturing

18
1 889

Agriculture, forestry, land use and fisheries

2 547

Water supply and wastewater

1 455*

Solid waste management

1 708*

Transport

16 007*

Buildings, public installations and end-use energy
efficiency

3 406

Information and communications technology (ICT) anddigital technologies
Research, development and innovation

357
1 960

Cross-sectoral activities

8 999

Total

62 530(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $893 million, is excluded from relevant sectors to avoid double counting.

Mitigation finance by region for all the economies, with further breakdown by sector, is presented

40 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

in Table 61.
Table 61. Total MDB mitigation finance by sector and by region, 2021 (in $ million)
Central East Asia Europe: Europe: Latin
MiddleAsia
and theEU
Non-EU America East andPacific
and the North
CaribAfrica
bean
EnergyMiningand metal
production forclimate action
Manufacturing
Agriculture,
forestry,land use andfisheries
Water
supply andwastewater
Solid waste
management
Transport
Buildings,
publicinstallations
and enduse energy
efficiency
Informationand communications
technology(ICT) and digitaltechnologies
Research,development
and innovation
Cross-sectoral
activities
Total

370

1 496

-

52

14 042South
Asia

SubMultiSaharan regional
AfricaTotal

24 184

1 892

1 462

485

1 601*

2 386

450

18

-

-

-

-

-

-

46

165

824

75

282

88

147

211

1 889

100

405

109

86

758

66

146

704

172

2 547

115

126

177

31

482

27

401*

80

16

1 455

19

408

235

189

130

78

381*

112

155

1 708

398*

426

9 291

1 413

618

1 726

1 454*

388

293

16 007

83

299

1 166

389

615

100

227

198

328

3 406

-

-

-

6

225

-

-

2

125

357

18

3

1

1 849

66

11

10

2

-

18

1 960

304

466

1 879

114

3 146

213

825

1 898

154

8 999

1 444

3 673

28 932

5 011

7 521

2 987

5 125

5 914

1 922

62 530(*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, climate mitigation finance from AIIB financing
for three projects reported under ERUM, amounting to $105 million and $788 million, is excluded from the Central Asia and South Asia
climate mitigation amounts, respectively, to avoid double counting.

ANNEX A.4 CLIMATE CO-FINANCE AND CLIMATE FINANCE RATIOSThe multilateral development banks’ climate co-finance is based on their harmonised definitions,which can be consulted in Section 1.3.
Table 62 shows climate co-finance flows by adaptation and mitigation for all the economies
where multilateral development banks operate. In order to avoid double counting, the last columnof Tables 62 and 63 nets out potentially double-counted co-financing by considering only the
proportion of co-financing for every project that features co-financing from another multilateraldevelopment bank.
Table 63 shows 2021 climate co-finance flows as reported by each institution, segmented by thesource of co-financing. These figures are the best estimate of resource flows based on information
available at the time of board approval and/or commitment to each project. In some cases, two

ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 41

or more multilateral development banks jointly finance a project, which results in some overlap
between the gross co-finance figures reported by the different banks. This table reflects the 2021
climate co-finance flows, including the direct and indirect mobilisation attributed to guarantees.
The guarantee exposure of each multilateral development bank has been shown as “own account”
in Tables 2, 23, 43 and 64.
Table 64 shows climate co-finance for low- and middle-income economies, high-income economies
and totals, for each multilateral development bank. It also presents climate finance ratios for each
MDB, calculated with total climate co-finance numbers from Table 62.
Table 62. Total climate co-finance flows by MDB and by thematic focus, 2021 (in $ million)
FOR LOW- AND MIDDLE-INCOME ECONOMIES

Mitigation
finance

Correction
for multiple
MDB
financing

AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total
climateco-finance

1 935

2 785

704

8 752

6 133

2 131

5 127

8 566

36 13328 844

2 388

3 773

312

797

229

1 756

5 063

18 35114 759

5 173

4 477

9 063

6 929

2 360

6 883

13 62954 48443 603

WBG

Total
climateco-finance

Correction
for multiple
MDB
financing

Adaptation
finance

4 034

Total

5 969

FOR HIGH-INCOME ECONOMIES

AfDB

ADB

Mitigation
finance--

Adaptation
finance

-

0

Total

-

0

AIIB
14
-

EBRD

8 741 46 653
-

14

EIB

8 741

IDBG

IsDB

422

-

1 059

56 88956 036

619

5

-

41

665

665

47 272

427

-

1 100

57 55456 701

Correction
for multiple
MDB
financing

TOTAL CLIMATE CO-FINANCE

AfDB

ADB

AIIB

EBRD

EIB

IDBG

IsDB

WBG

Total
climateco-finance

Mitigation
finance

1 935

2 785

718

17 49352 786

2 553

5 127

9 625

93 02284 880Adaptation
finance

4 034

2 388

3 773

312

1 415

234

1 756

5 104

19 01615 423

Total

5 969

5 173

4 491 17 805 54 201

2 787

6 883

14 729112 038

100 30342 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

ADB

AIIB

EBRD

Table 63. Total climate co-finance flows by MDB and by source, 2021 (in $ million)
AfDB

EIB

IDBG

IsDB

WBG

-

-

-

-

-

556

-

-

83
-

-

-

-

73

2 043

-

-

-

-

-

-

580

2 068

-

-

-

71

-

-

905

1 203

-

329

29

-

-

75

780

-

-

435

-

-

-

-

-

83

4 067

-

-

-

-

72

1 158

-

4,656

-

717

12 411

-

-

5 536

Total
climatecofinance

5 536

Correctionformultiple
MDB
financing

3 639

12 6232 782

12 623

-

-

16

-

41

For
For
For
For
For
For
For
For
low- and For high- low- and For high- low- and For high- low- and For high- low- and For high- low- and For high- low- and For high- low- and For highmiddle- income middle- income middle- income middle- income middle- income middle- income middle- income middle- income
income econo- income econo- income econo- income econo- income econo- income econo- income econo- income econoeconomies
economies
economies
economies
economies
economies
economies
economies
mies
mies
mies
mies
mies
mies
mies
mies
Public direct
mobilisation-

0

Public co-finance
561

1 913

Other MDBs
IDFC members

114

13 896-

17 412

3

600

241

38 783

6 195

100 303

35 038

6 195

-

203

-

205

3 421

943

55

15 798

-

-

-

2 409

-

2 733

234

-

-

389

Other international
public

969

-

591

24 23514-944

27 851

2 358

-

55

-

-

-

6

85

3 523

-

449

3 294

-

-

-

-

-

2 474
-

-

17

Other domestic
public
-

21

-

98

349

-

-

18 015-

Total private
mobilisation
-

1 311

-

Private direct
mobilisation

8 665

112 038

14 729

4 883

6 883

-

2 787

-

54 201-17 805

859

4 491

5 173

787
5 969

Private indirect
mobilisation
Total

Note:
1. Co-financing figures are current as of 13 May 2022. Fluctuations are expected due to changes in project financing between board approvals, loan signatures and execution.
2. For non-commercial guarantees, private direct mobilisation corresponds to the underlying investment covered by the guarantee. For MDBs reporting on own account associated with non-commercial guarantees, an adjustment must be madeby the MDB to avoid double-counting.
Local counterpart financing is reported under “Other domestic public”.
3.

ANNEX A: FURTHER DETAILED ANALYSIS OF MDB CLIMATE FINANCE DATA | 43

Table 64. Total MDB climate co-finance and climate finance ratios, 2021For
low- andmiddleincome
economies
88

For highincome
economies

9 063

4 777

For
low- andmiddleincome
economies

8 741

1 599

For highincome
economies

(562)

6 929

3 371

For
low- andmiddleincome
economies

75 405-47 27228 134For highincome
economies

7 180

-

2 360

4 819

For
low- andmiddleincome
economies

1 165

-

427

738

For highincome
economies

4 965(2 602)

6 883

684

For
low- andmiddleincome
economies

0

-

-

0

For highincome
economies

38 460(3 158)13 62927 989For
low- andmiddleincome
economies

802

(788)

1 100

490

For highincome
economies

182 020*(11 718)

112 021Total

For highincome
economies
2 746
14

(65)

9 739

WBG

For
low- andmiddleincome
economies
2
4 477(1 079)10 275IsDB

For highincome
economies
4 764*-

12 761IDBG

For
low- andmiddleincome
economies
5 173(1 328)

102

EIB

2 429
5 895

EBRD

Climate co-finance

5 969
(39)
2

AIIB

Climate finance by
MDB

9 898

ADB

Climate co-finance(2 114)-

AfDB

Correction for
multiple MDB
financing
6 283

Climate financefrom MDB own
account, as apercentage of MDB
operations from
MDB own accountClimate financeratiosTotal MDB climate
activity finance

41%

44%

AfDB

6 283

21%

18%

ADB

9 900

29%

29%

AIIB

5 997

50%

49%

EBRD

23 037

41%

49%

EIB

85 145

25%

24%

IDBG

8 345

31%

31%

IsDB

4 965

32%

32%

WBG

39 262

34%

36%

Total

182 02081 717*

MDB climate
activity finance

MDB climate
finance as apercentage of total
MDB operations

Note:
1. The AIIB’s 2021 climate finance share was calculated including projects financed through the Bank’s COVID-19 Crisis Recovery Facility (CRF). This share would be 48% if CRF projects were excluded. The nature of AIIB CRF projects means thatthey have few or no climate finance components.
2. “Total MDB climate activity finance” refers to the sum of “Total MDB climate finance” and “Climate co-finance”.
3. (*) Considering the explanation provided in Figures 1a, 1b and 2 about ADB external resources, ADB administers financing from AIIB for several projects, some of which have components that contribute to climate finance. For 2021, ADB reports
climate adaptation finance of $20 million and climate mitigation finance of $893 million from ADB-administered financing from AIIB. To avoid double counting, these amounts are excluded from the 2021 total MDB amounts as AIIB reports
climate finance for the same projects as a share of their financing under own resources.

44 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX BGEOGRAPHICAL COVERAGE OF THE REPORTThe inclusion of economies, and the terms and names used in this report to refer to geographicalor other territories, political and economic groupings and units, do not constitute and should not be
construed as constituting an express or implied position, endorsement, acceptance or expressionof opinion by the MDBs or their members concerning the status of any country, territory, grouping
and unit, or delimitation of its borders, or sovereignty.
Tables B.1 and B.2. present a list of economies covered by at least one of the MDBs, taken into
account for climate finance data presented in this report and categorised in accordance with
the World Bank’s classification list dated June 2021. Least developed economies are definedaccording to the UNFCCC list 22 and small island states are defined according to the Alliance ofSmall Island States (AOSIS) list. Note that some least developed economies are also small islandstates. In those cases, they are identified as “both”.
Climate finance for economies marked with an asterisk (*) has not been reported in previous
editions of the Joint Report on MDBs’ Climate Finance.
Table B.1. Climate finance in low- and middle-income economies for 2015, 2016, 2017, 2018, 2019, 2020 and
2021 (in $ million)
EconomyRegionIncomeLeast
Developed
Economy/Small
IslandState

Afghanistan

South Asia

Low
incomeLeast
Developed
EconomyAlbania

Non-EU

Algeria

Armenia

MiddleEast andNorth
AfricaSubSaharanAfricaLatin
Americaand theCaribbean
Non-EUUpper
middleincomeLower
middleincomeAzerbaijan

Non-EU

Bangladesh

South Asia

AngolaArgentina

Belarus22

Non-EU

Lower
middleincomeUpper
middleincomeUpper
middleincomeUpper
middleincomeLower
middleincomeUpper
middleincomeTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

-

173

147

144

281

65

485

110

174

15

111

114

34

66

1

-

-

-

-

-

15

72

43

155

470

260

314

508

2 276

1 434

917

121

1 204

108

45

132

45

107

79

210

16

171

250

20

8

11

45

899

1 315

200

1 296

2 144

1 127

732

43

49

7

241

278

146

30

Least
Developed
EconomyLeast
Developed
Economy--http://unfccc.int/cooperation_and_support/ldc/items/3097.php

ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 45

Economy

RegionIncomeLeast
Developed
Economy/Small
IslandState

BelizeLatin
Americaand theCaribbean
SubSaharanAfricaSouth Asia

Lower
middleincomeSmall Island
State

Lower
middleincomeLower
middleincomeLower
middleincomeLeast
Developed
EconomyLeast
Developed
EconomyBenin

BhutanBolivia

Bosnia andHerzegovina
Botswana

BrazilBulgaria

Burkina Faso

BurundiCambodia

Cameroon

Cape VerdeCentral African
Republic
Chad

China

Latin
Americaand theCaribbean
Non-EU

SubSaharanAfricaLatin
Americaand theCaribbean
EU

SubSaharanAfricaSubSaharanAfricaEast Asiaand thePacific
SubSaharanAfricaSubSaharanAfricaSubSaharanAfricaSubSaharanAfricaEast Asiaand thePacific

Upper
middleincomeUpper
middleincomeUpper
middleincomeUpper
middleincomeLow
incomeLow
incomeLower
middleincomeLower
middleincomeLower
middleincomeLow
incomeLow
incomeUpper
middleincomeLeast
Developed
EconomyLeast
Developed
EconomyLeast
Developed
EconomySmall Island
State
Least
Developed
EconomyLeast
Developed
EconomyTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

51

4

20

2

13

1

11

21

3

44

126

297

123

232

2

17

7

4

2

20

24

405

373

321

363

124

77

1

27

95

101

110

180

78

133

-

-

143

-

19

-

170

548

914

766

1 473

1 700

1 436

2 006

58

156

112

137

5

41

130

9

7

166

130

194

134

311

25

22

28

27

3

108

47

46

85

86

117

139

121

171

2

17

329

186

761

57

423

1

-

15

-

11

5

18

7

-

10

23

99

8

106

6

-

-

41

58

101

40

1 091

2 349

2 305

2 019

2 424

2 363

1 867

46 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy

RegionIncomeColombia

Latin
Americaand theCaribbean
SubSaharanAfricaSubSaharanAfricaLatin
Americaand theCaribbean
SubSaharanAfricaSubSaharanAfricaSubSaharanAfricaLatin
Americaand theCaribbean
Latin
Americaand theCaribbean
Latin
Americaand theCaribbean
MiddleEast andNorth
AfricaLatin
Americaand theCaribbean
SubSaharanAfricaSubSaharanAfricaUpper
middleincomeSubSaharanAfricaLower
middleincomeComoros

Congo

Costa Rica

Côte d’Ivoire

Democratic
Republic of theCongo
Djibouti

Dominica

Dominican
Republic

EcuadorEgypt

El Salvador

Equatorial
GuineaEritrea

Eswatini

Lower
middleincomeLower
middleincomeUpper
middleincomeLower
middleincomeLow
incomeLower
middleincomeUpper
middleincomeUpper
middleincomeLeast
Developed
Economy/Small
Island
State

Both

Least
Developed
EconomyLeast
Developed
EconomySmall Island
State

Small Island
State

Upper
middleincomeLower
middleincomeLower
middleincomeUpper
middleincomeLow
incomeLeast
Developed
EconomyLeast
Developed
EconomyTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

182

904

747

719

980

657

1 595

5

-

4

-

23

93

3

-

25

2

58

58

1

111

200

-

5

4

162

379

214

5

73

296

346

535

453

406

10

153

128

6

98

305

835

-

2

-

41

21

103

14

-

-

-

39

70

19

3

1

137

3

509

258

1

294

582

325

27

792

616

446

317

511

693

1 585

1 597

1 611

1 508

2 232

-

-

29

52

128

217

525

-

-

-

-

63

-

-

-

-

7

-

34

-

-

3

31

-

58

8

27

1

ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 47

Economy

RegionIncomeLeast
Developed
Economy/Small
IslandState

Ethiopia

SubSaharanAfricaEast Asiaand thePacific
SubSaharanAfricaSubSaharanAfricaNon-EU

Low
incomeLeast
Developed
EconomySmall Island
State

Fiji

Gabon

GambiaGeorgia

Ghana

GrenadaGuatemalaGuineaGuinea-Bissau

GuyanaHaiti

Honduras

India

Indonesia

Iran

SubSaharanAfricaLatin
Americaand theCaribbean
Latin
Americaand theCaribbean
SubSaharanAfricaSubSaharanAfricaLatin
Americaand theCaribbean
Latin
Americaand theCaribbean
Latin
Americaand theCaribbean
South Asia

East Asiaand thePacific
MiddleEast andNorth
AfricaUpper
middleincomeUpper
middleincomeLow
incomeUpper
middleincomeLower
middleincomeUpper
middleincomeTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

79

206

192

1 154

1 214

191

1 154

53

31

15

-

2

18

62

-

43

24

95

67

28

77

-

5

9

53

21

29

16

109

187

88

110

415

304

314

32

72

81

63

353

89

148

Least
Developed
EconomySmall Island
State

-

-

1

12

-

37

4

-

3

22

31

334

33

735

-

7

17

64

90

29

250

10

-

3

12

8

12

11

1

7

2

15

15

-

31

41

4

143

234

107

100

153

253

44

46

99

184

250

477

1 948

3 017

2 678

3 703

3 671

3 549

3 735

674

578

873

773

959

1 172

1 637

-

-

-

-

0

-

-

Upper
middleincomeLow
incomeLow
incomeLeast
Developed
EconomyBoth

Upper
middleincomeSmall Island
State

Lower
middleincomeBoth

Lower
middleincomeLower
middleincomeLower
middleincomeLower
middleincome48 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy

RegionIncomeIraq

MiddleEast andNorth
AfricaLatin
Americaand theCaribbean
MiddleEast andNorth
AfricaCentralAsia

Upper
middleincomeJamaica

JordanKazakhstan

Kenya

KosovoSubSaharanAfricaEast Asiaand thePacific
Non-EU

KyrgyzRepublic

CentralAsia

Lao People’s
Democratic
Republic
LebanonEast Asiaand thePacific
MiddleEast andNorth
AfricaSubSaharanAfricaSubSaharanAfricaSubSaharanAfricaSubSaharanAfricaKiribati

LesothoLiberia

Madagascar

MalawiMalaysia

Maldives

Mali

Upper
middleincomeSmall Island
State

Upper
middleincomeUpper
middleincomeLower
middleincomeLower
middleincomeUpper
middleincomeLower
middleincomeLower
middleincomeUpper
middleincomeLower
middleincomeLow
incomeLow
incomeLow
incomeEast Asiaand theUpper
middlePacific
South Asia

incomeUpper
middleincomeLow
incomeSubSaharanAfricaLeast
Developed
Economy/Small
Island
State

Both

Least
Developed
EconomyLeast
Developed
EconomyLeast
Developed
EconomyLeast
Developed
EconomyLeast
Developed
EconomySmall Island
State
Least
Developed
EconomyTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

8

610

321

446

103

14

149

21

57

52

290

3

52

43

238

412

517

272

457

262

298

438

521

389

260

364

96

564

260

159

581

1 161

378

451

583

-

11

-

2

32

49

1

74

56

31

48

96

57

96

73

179

55

118

189

101

109

106

13

40

109

72

59

91

303

27

82

581

241

2

54

-

11

5

15

108

9

22

3

68

26

4

70

41

81

-

37

131

89

280

195

454

58

1

210

218

210

301

27

-

-

-

-

0

-

-

5

35

19

2

2

148

83

-

9

104

94

144

102

9

ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 49

Economy

RegionIncomeLeast
Developed
Economy/Small
IslandState

MarshallIslands

East Asiaand thePacific
SubSaharanAfricaSubSaharanAfricaLatin
Americaand theCaribbean
East Asiaand thePacific
Non-EUUpper
middleincomeLower
middleincomeUpper
middleincomeUpper
middleincomeSmall Island
State

Lower
middleincomeUpper
middleincomeLower
middleincomeUpper
middleincomeLower
middleincomeSmall Island
State

Low
incomeLeast
Developed
EconomyLeast
Developed
EconomyMauritania

Mauritius

MexicoMicronesia

Moldova

Mongolia

Montenegro

MoroccoMozambique

MyanmarNamibia

Nepal

New Caledonia

Nicaragua

Niger

Nigeria

East Asiaand thePacific
Non-EU

MiddleEast andNorth
AfricaSubSaharanAfricaEast Asiaand thePacific
SubSaharanAfricaSouth Asia

East Asiaand thePacific
Latin
Americaand theCaribbean
SubSaharanAfricaSubSaharanAfricaLower
middleincomeUpper
middleincomeLower
middleincomeHighincomeLeast
Developed
EconomySmall Island
State

Lower
middleincome

2015

2016

2017

2018

2019

2020

2021

2

1

21

32

12

17

2

-

6

-

11

39

56

31

9

-

-

1

-

81

-

1 211

1 193

1 006

575

1 277

330

Least
Developed
EconomyLeast
Developed
Economy

277

-

-

-

-

46

23

40

45

106

110

7

68

186

189

13

44

150

356

162

255

57

62

1

68

25

7

13

12

914

729

668

1 057

927

842

916

111

51

55

224

408

312

397

81

107

212

178

90

574

14

-

-

58

46

5

82

20

567

111

204

435

252

1 022

280

-

-

-

1

0

0

Small Island
State

Lower
middleincomeLow
incomeTotal climate finance in reporting year, in $ million

-

207

49

235

56

56

20

98

12

163

47

29

273

164

219

1

102

34

1 155

170

1 050

1 343

50 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy

RegionIncomeNorth
Macedonia

Non-EU

PakistanSouth Asia

PanamaLatin
Americaand theCaribbean
East Asiaand thePacific
Latin
Americaand theCaribbean
Latin
Americaand theCaribbean
East Asiaand thePacificEU

Upper
middleincomeLower
middleincomeUpper
middleincomePapua New
GuineaParaguay

Peru

Philippines

Romania

RussianFederation

Non-EU

RwandaSubSaharanAfricaEast Asiaand thePacific
SubSaharanAfricaSamoa

São Tomé and
Príncipe
SenegalSerbiaSierra Leone

SolomonIslands
Somalia

SubSaharanAfricaNon-EU

SubSaharanAfricaEast Asiaand thePacific
SubSaharanAfricaLower
middleincomeUpper
middleincomeLeast
Developed
Economy/Small
IslandState

Small Island
State

Upper
middleincomeLower
middleincomeUpper
middleincomeUpper
middleincomeLow
incomeLower
middleincomeLower
middleincomeLower
middleincomeUpper
middleincomeLow
incomeLower
middleincomeLow
incomeLeast
Developed
EconomySmall Island
State

Total climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

27

14

8

18

99

72

149

1 161

673

1 018

1 305

1 294

944

2 704

112

25

350

171

67

140

128

36

6

127

8

25

22

84

4

4

51

294

116

542

33

85

309

306

201

203

287

571

657

638

167

505

1 693

878

990

249

196

887

768

316

455

1 041

55

-

-

-

-

-

95

63

57

203

217

121

355

293

22

-

4

5

66

9

5

4

6

11

-

32

31

2

41

16

679

272

168

265

441

100

143

290

621

284

332

418

-

10

2

51

51

55

112

-

10

36

10

101

17

6

-

8

1

27

228

147

Both

Least
Developed
EconomyLeast
Developed
EconomyBoth

Least
Developed
Economy-ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 51

Economy

RegionIncomeSouth Africa

SubSaharanAfricaSubSaharanAfricaSouth Asia

Upper
middleincomeLow
incomeSouth Sudan

Sri Lanka

St, Lucia

St, Vincent
and theGrenadines
Sudan

Suriname

Syrian Arab
Republic

Tajikistan

Tanzania

Thailand

Timor-Leste

Togo

Tonga

Tunisia

Türkiye

Latin
Americaand theCaribbean
Latin
Americaand theCaribbean
SubSaharanAfricaLatin
Americaand theCaribbean
MiddleEast andNorth
AfricaCentralAsia
SubSaharanAfricaEast Asiaand thePacific
East Asiaand thePacific
SubSaharanAfricaEast Asiaand thePacific
MiddleEast andNorth
AfricaNon-EU

Lower
middleincomeUpper
middleincomeLeast
Developed
Economy/Small
Island
State

2015

2016

2017

2018

2019

2020

2021

55

59

103

544

178

557

520

-

1

39

-

28

15

70

84

212

574

72

604

192

87

-

-

2

35

1

15

6

-

-

9

11

10

13

5

-

13

41

58

13

572

1

8

26

32

95

19

-

-

-

1

Least
Developed
EconomySmall Island
State

Upper
middleincomeSmall Island
State

Low
incomeLeast
Developed
EconomySmall Island
State

Upper
middleincomeTotal climate finance in reporting year, in $ million

LowincomeLower
middleincomeLower
middleincomeUpper
middleincomeLower
middleincomeLow
incomeUpper
middleincomeLower
middleincomeUpper
middleincomeLeast
Developed
Economy

-

-

-

149

34

232

192

116

214

150

243

138

549

198

44

376

455

176

91

130

533

97

76

316

-

5

9

2

-

46

40

-

-

6

42

32

43

40

15

8

1

14

83

28

27

19

96

387

265

427

90

192

2 582

2 135

1 790

1 450

1 449

1 383

2 386

Both

Least
Developed
EconomySmall Island
State

-

52 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy

RegionIncomeTurkmenistan

CentralAsia

TuvaluEast Asiaand thePacific
SubSaharanAfricaNon-EUUpper
middleincomeUpper
middleincomeLow
incomeUgandaUkraineUzbekistan

CentralAsia

Vanuatu

East Asiaand thePacific
East Asiaand thePacific
MiddleEast andNorth
AfricaMiddleEast andNorth
AfricaSubSaharanAfricaSubSaharanAfricaVietnamWest Bank and
Gaza

Yemen

ZambiaZimbabweLower
middleincomeLower
middleincomeLower
middleincomeLower
middleincomeLower
middleincomeLeast
Developed
Economy/Small
Island
State

Both

Least
Developed
EconomySmall Island
State

Low
incomeLeast
Developed
EconomyLower
middleincomeLower
middleincomeLeast
Developed
EconomyTotal climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

1

1

6

5

-

4

2

7

3

1

10

26

13

3

124

15

166

621

283

394

330

940

865

833

519

1 115

1 192

1 128

61

55

270

1 162

823

1 005

1 029

23

51

17

-

84

5

385

1 211

862

210

445

510

523

5

1

2

15

22

77

28

78

131

23

169

113

81

45

20

4

36

8

-

-

-

68

20

140

12

18

24

-

-

Table B.2. Climate finance in high-income economies for 2015, 2016, 2017, 2018, 2019, 2020 and 2021
(in $ million)
EconomyRegionIncomeEU

High
incomeLeast
Developed
Economy/Small
IslandState

Total climate finance in reporting year, in $ million

2015
Austria

BahamasBahrain

Latin
Americaand theCaribbean
MiddleEast andNorth
Africa

2016

2017

2018

2019

2020

2021

1 101* 1 188*

852*

344*

397

870

453

44

100

4

218

143

-

-

-

32

High
incomeSmall Island
State

1

1

High
incomeSmall
Island State

-

-

-

ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 53

Economy

RegionBarbados

Latin
Americaand theCaribbeanHigh
incomeBelgiumEU

Chile

Cook Islands

Latin
Americaand theCaribbean
East Asiaand thePacific

Croatia

EU

CyprusEU

Czech
RepublicEU

DenmarkEU

EstoniaEU

FinlandEU

FranceEU

GermanyEU

GreeceEU

HungaryEU

IcelandEU

IrelandEU

IsraelMiddleEast andNorth
AfricaItaly

EU

LatviaEU

Lithuania

EU

Luxembourg

EU

Malta

MiddleEast andNorth
AfricaIncomeLeast
Developed
Economy/Small
IslandState

Total climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

1

5

-

-

53

158

117

High
income427* 1 351*

689*

697*

587*

432* 1 344

Highincome

119

153

208

7

22

459

506

-

4

12

-

5

5

-

174

16

68

311

36

134

281

22

27

46

34

45

91

9

91

11*

144*

59*

620

498

733

115*

2*

151*

175*

335

275

564

47

89

5

8

10

182

89

420* 1 357*

639*

942*

284

258

575

4 185* 3 124* 4 461* 2 673* 3 669

4 895

6 971

1 669* 2 390* 1 768* 1 868* 1 711

3 160

2 181

High
incomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeHighincomeSmall Island
State

Small Island
State

216*

91

673

225

732

1 353

1 193

497

155

31

155

155

70

592

-

189*

-

-

-

188*

219*

148*

221*

144

160

-

-

-

-

2 593* 2 437* 2 492* 1 964* 1 985

449

262

-

17

3 473

3 546

247

2

86

-

102

2

68

183

215

95

157

30

559

131

60*

3*

-

-

223

0

7

-

-

-

-

1

0

-

54 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy

RegionNauru

East Asiaand thePacific

Netherlands

IncomeLeast
Developed
Economy/Small
IslandState

Total climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

High
income

-

-

3

62

22

-

-

EU

High
income

630*

465*

367*

913*

816

795

1 433

New Caledonia

East Asiaand thePacific

High
income

-

-

-

-

1

0

-

NorwayNon-EUHigh
income

-

6*

347*

74*

72

-

High
income

-

-

-

-

264

-

-

-

-

-

2

-

8

1

1 189

1 806

1 562

1 286

2 095

2 790

3 190

-

-

-

-

303

296

248

Oman

Palau

MiddleEast andNorth
AfricaEast Asiaand thePacific

PolandEU

Portugal

EU

Seychelles

Singapore

Sint Maarten(Dutch part)

SubSaharanAfricaEast Asiaand thePacific
Latin
Americaand theCaribbean

SlovakRepublicEU

Slovenia

EU

Spain

EU

SwedenEU

Switzerland

Trinidad andTobagoUnited ArabEmirates

Europe &CentralAsia
Latin
Americaand theCaribbean
MiddleEast andNorth
AfricaHigh
incomeSmall Island
State

High
incomeHighincome282

HighincomeSmall Island
State

25

-

-

2

0

5

9

High
incomeSmall
Island State

-

-

-

-

-

-

20

High
incomeSmall Island
State

-

-

-

-

118

55

25

High
incomeHighincomeHighincomeHighincome

302

87

53

281

143

36

74

154

18

47

1

93

6

46

1 973*

560* 1 876* 1 526* 2 561

3 259

4 498

557*

417* 1 431* 1 038* 1 383

1 681

572

High
incomeHighincomeSmall Island
State

-

6

-

-

2

-

-

1

1

-

-

-

21

1

-

-

-

-

2

2

2

4 010* 3 272*

376*

255

179

-

-

113

143

342

High
incomeUnitedKingdom

EUHigh
incomeUruguay

Latin
Americaand theCaribbeanHigh
income

139

100

306

164

ANNEX B: GEOGRAPHICAL COVERAGE OF THE REPORT | 55

Table B.3. Climate finance in regional, global and multi-regional projects for 2015, 2016, 2017, 2018, 2019,2020 and 2021 (in $ million)
EconomyRegionIncomeLeast
Developed
Economy/Small
IslandState

Total climate finance in reporting year, in $ million

2015

2016

2017

2018

2019

2020

2021

Regional

Regional

Regional

1 427

409

1 436

2 143

2 668

2 425

4 106

GlobalGlobalGlobal

169

77

-

-

103

145

188

Multi-regional

Multiregional

Multiregional

147

52

193

339

20

343

75

Note: Climate finance figures for the Czech Republic were reported under the EU-12 region in the 2015 Joint Report on MDBs’ Climate Financefigures for Greece were reported under the EU-12 region starting from the 2016 edition of the report.

To facilitate comparability with data reported in previous years, Figure B.1 presents climate financecommitments for the period 2011-18 as in past reports, plus the column for 2019-21 for the same
set of economies. Note, however, that this figure is provided for historical comparison only. The
2021 edition of the report includes all economies where the MDBs operate, with a disaggregationby the income level of the borrowing or recipient country.
Figure B.1. Climate finance commitments for 2011-21 (in $ billion)$ billion

60

58.8

43.1

40

27.0
20

3.2
3.7

1.6

5.6

26.8
3.3
3.1
3.7

2.2

0

28.3
2.2 23.8
3.3
3.5
1.9 5.2

1.2

1.2

2.9
4.1

1.9 25.1

5.3
27.4
1.4

5.2
2.5

4.4
2.9
3.5
3.2
4.3
5.1
1.7 2.7

3.3
4.0
3.8

35.2
5.2

1.1

5.7

4.6

5.0

5.5

46.4

45.4

7.1

5.3

5.0

3.9

3.6

2.1
1.2

3.4
0.5

6.4
8.6
5.6

7.2

6.5
5.0

2.4
(3.9 4.8
0.9)
2.8

0.3

4.3

10.7

12.7

9.4

11.8

10.7

11.5

13.2

21.3

18.8

22.0

28.5

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

ADB

ADB*

AIIB

AfDB

EBRD

0.7

EIB

IDBG

IsDB

WBG

Notes:
1. Annex B details the economies reported for previous years.
2. In past editions of the Joint Report on Multilateral Development Banks’ Climate Finance, for the years 2011-18, EIB climate finance figures
were restricted to developing and emerging economies in transition where other MDBs were operating and did not include other economies
where only the EIB was operating and supported climate action.
3. In the years 2011-14, the numbers for the WBG included only IFC and WB, and IFC included short-term finance (such as trade finance).
Since 2015 IFC has not included short-term finance when reporting its climate finance figures. MIGA finance has been included since 2015.
4. (*) For ADB, external resources under Management (ERUM) includes finance administered for other clients, including AIIB. ADB administers
several AIIB projects, some of which have climate finance. For 2021, ADB’s climate adaptation finance of $19 million and climate mitigation
finance of $893 million from ADB-administered AIIB projects are reported under ERUM. As AIIB reports climate finance as a share of theirfinancing for these projects under their own resources, the 2021 MDB totals have excluded these figures from ADB to avoid double counting.

56 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX CMETHODOLOGIES AND DEFINITIONSANNEX C.1 DEFINITIONS AND CLARIFICATIONS
Avoiding double counting: Where the same project, sub-project or project element contributes
to mitigation and adaptation, an MDB’s individual processes will determine which proportion iscounted as mitigation or as adaptation, so that the actual financing will not be recorded morethan once. Some MDBs are reporting as a separate category climate finance in projects where thesame components or elements contribute to mitigation and adaptation simultaneously. The MDBs
are working on the best method for reporting projects where the same components or elements
contribute to both mitigation and adaptation.
Conservativeness: Where data are unavailable, any uncertainty must be overcome by taking
a conservative approach, where under-reported rather than over-reported climate finance ispreferable.
Financing instruments: This report accounts for climate finance through the largest and most
relevant development finance instruments of MDBs, including grants, loans, guarantees, equity,and performance-based instruments.
Granularity: MDBs report climate finance by taking only those components and/or subcomponents or elements or proportions of projects with activities that contribute directly to or
promote climate change adaptation and/or mitigation.
Investments and technical assistance: Refers to vehicles that MDBs use to channel specificinvestments to finance capital and recurrent expenditures for goods and services, as well as tospecialised advisory services and capacity-building initiatives.
MDB-managed external resources: Refers to the volume of operations supported by bilateral
institutions through dedicated climate finance entities such as the GEF and CIF, or other donor
funds such as EU blending facilities, which may also be reported to the Development AssistanceCommittee of the Organisation for Economic Co-operation and Development (OECD) by contributor
countries.
Point of reporting: Data reported herein reflects financial commitments at the time of board
approval or financial agreement signature and is therefore based on ex-ante estimations. All efforts
have been made to prevent double counting. No revisions will be issued in cases where a project’s
scope changes later to either increase or decrease climate financing.
Private direct mobilisation: Financing from a private entity on commercial terms due to theactive and direct involvement of an MDB leading to commitment. Evidence of active and direct
involvement includes mandate letters, fees linked to financial commitment or other valid orauditable evidence of an MDB’s active and direct role leading to commitments by private financiers.
Private direct mobilisation does not include sponsor financing.
Private indirect mobilisation: Financing from private entities supplied in connection with a
specific activity for which an MDB is providing financing, where no MDB is playing an active or
direct role that leads to the commitment of the private entity’s finance. Private indirect mobilisation
includes sponsor financing, if the sponsor qualifies as a private entity.
Public and private sector operations: This determination is based on the status of the firstrecipient or borrower of MDB finance. The first recipient or borrower is considered to be public
when at least 50% of the stakes or shares of the recipient or borrower are publicly owned.
Public direct mobilisation: Financing from a public entity due to the active and direct involvementof an MDB leading to commitment. Evidence of active and direct involvement includes mandate
letters or other valid or auditable evidence of an MDB’s active and direct role. The main difference

ANNEX C: METHODOLOGIES AND DEFINITIONS | 57

between an external resource under MDB management (ERUM) and a public direct mobilisation isthe disbursement which under public direct mobilisation goes directly from a public entity to thebeneficiary.
Recipient or borrower: Refers to the first borrower or beneficiary to whom finance will flow
directly. The MDBs acknowledge that this classification is neither simple nor straightforward
and that the characteristics of the first recipient or borrower may not be the same as those of
the final beneficiary or borrower. An example would be a loan to a national development bank (thefirst recipient) for energy efficiency in small and medium-sized enterprises (the final beneficiaries).
Operations through public-private partnerships (PPPs) add another layer of complexity to thisclassification.
Reporting period: This report’s data covers the fiscal year 2021. Even though MDBs do notfollow the same reporting cycle, data remains comparable across MDBs as all reporting cycles
correspond to a 12-month period.
Resources covered: These include MDBs’ own accounts as well as a range of external resourcesmanaged by the MDBs and various sources of co-financing.
Values of zero and “—”: Reporting is complete for all fields and tables. A value of 0 in a tablemeans that the value is below $0.5 million while a “—“ means that no amount was reported. As
all financial figures are rounded to the nearest $ million, calculations contained in a table may varyslightly and may not always add up to 100% or to the total shown.
ANNEX C.2 JOINT METHODOLOGY FOR TRACKING
CLIMATE CHANGE ADAPTATION FINANCE
In 2021, the MDBs commenced a review of the joint MDB methodology for tracking adaptation
finance. This review aims to take stock of recent developments in the field of adaptation finance,
MDBs’ efforts to support climate adaptation and resilience through a wide range of sectors
beyond traditional infrastructure sectors, and the increasing diversity of financial modalities thatare used to support adaptation and resilience. This review, expected to be completed in 2022,
will complement ongoing efforts by MDBs to enhance the robustness and transparency of climate
finance tracking and support climate action, in line with the objectives of the Paris Agreement.
Background and guiding principles
Climate resilience and adaptation are intrinsically linked to development. This makes it challenging
to accurately estimate adaptation finance elements in development operations. In responseto this challenge, the joint MDB Working Group on Climate Finance Tracking applies a common
adaptation finance tracking methodology to identify within the development operations of MDBs
those specific adaptation activities (or, in other words, the differentiating elements of development
operations) that are carried out in response to perceived or expected climate change impacts. The
methodology applies a context-specific, location-specific and granular approach, and estimations
are made conservatively to reduce scope for over-reporting of adaptation finance.
The MDB adaptation finance tracking methodology considers the sub-project level or projectelement level to be appropriate. The joint MDB approach also seeks to identify the links between
adaptation activities and the project’s explicit intent to reduce vulnerability to climate change.
Thus, the volume of MDB-reported adaptation finance is an estimation of total project finance for
specific project activities that contribute to overall project outcomes in the process of adapting toclimate change.
It is important to note that the MDBs’ estimated climate finance may not express the full value of
project finance that contributes to climate resilience. For instance, the granular approach would

58 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

capture financing for improved drainage of a newly constructed road to withstand heavy rainfall orstorm surges that in turn contributes to the overall resilience of the road and the investment. The
granular approach does not capture the value of the entire project or investment that may increase
resilience due to specific adaptation activities within the project. In addition, some activities
without associated incremental costs, such as operational procedures to ensure business
continuity or the practice of siting assets outside the range of a future storm surge, may not be
tracked in quantitative terms.
MDB methodology and MDB-IDFC common principles
MDBs and the International Development Finance Club (IDFC) are fully committed to promoting
and supporting climate-resilient development as an essential part of the sustainability of theirinvestments. With this shared commitment, MDBs and the IDFC work together towards improved
definitions and understanding of the different approaches and principles for tracking climatechange adaptation finance.
As a result, in July 2015 these institutions agreed on the Common Principles for Climate Change
Adaptation Finance Tracking. The principles establish the parameters with which to identify andestimate the volume of adaptation finance in MDB and IDFC operations. They also form the basis
for further joint work to increase the comparability of reported figures on climate adaptation
finance and to harmonise key concepts related to reporting guidelines and processes. MDBs andthe IDFC are currently developing additional metrics to identify and report on climate resilience intheir development operations.
Application of the adaptation finance tracking methodology
The MDB methodology on adaptation finance tracking consists of the following three key steps:
1. Setting out the climate change vulnerability context of the project.
2. Making an explicit statement of intent of the project to reduce climate change vulnerability.
3. Articulating a clear and direct link between specific project activities and the project’s objective to
reduce vulnerability to climate change.
The identification and estimation of adaptation finance is limited solely to those project activities(that is, projects, project components, or elements or proportions of projects) that are clearly linked
to the climate change vulnerability context.
Step 1. Context of vulnerability to climate change
For a project to be considered as contributing to adaptation, the context of climate change
vulnerability must first be set out clearly using a robust evidence base. Project documents may
refer to existing analyses and reports or to original, bespoke assessments of climate change
vulnerability, such as those carried out as part of project preparation. Good practice in the use ofexisting analyses or reports includes citing authoritative, preferably peer-reviewed sources, such as
academic journals, national communications to the UNFCCC, Nationally Determined Contributions(NDCs), reports of the Intergovernmental Panel on Climate Change, or strategic programmes forclimate resilience.
Good practice in conducting original, bespoke analysis entails the use of information from trusted
sources, which document the vulnerability of communities, physical assets or ecosystems toclimate change as well as the use of recent climate trends including any departures from historicmeans. These may be combined with climate change projections drawn from a range of climatechange models, with high and low greenhouse gas emission scenarios, to explore the full array of
projected outcomes and uncertainties. Climate projection uncertainties should be presented andinterpreted in a transparent way. The timescale of projected climate change impacts should matchthe intended lifespan of the assets and systems being financed through the project (for example, atime horizon of 2030, 2050, 2080, and so on).

ANNEX C: METHODOLOGIES AND DEFINITIONS | 59

Step 2. Statement of purpose or intent
Once a project’s context of vulnerability to climate change has been established, the project should
set out the explicit intention to address the context-specific and location-specific climate change
vulnerabilities in response to the project’s climate vulnerability assessment. This is an important
step to distinguish between a development project contributing to climate change adaptation anda standard development project.
The methodology is flexible about the location and form of this statement of intent in the document,
as long as the MDB is able to record and track the rationale for each adaptation element linked tothe climate change vulnerability context described. MDB projects with adaptation finance usuallystate — in final technical documents, documents for board approval, internal memos or otherassociated project documents — the intention to reduce vulnerability.
Step 3. Clear and direct link between climate change vulnerability and project activities
In line with the principles of the overall MDB climate finance tracking methodology, adaptation
finance estimations consider only the finance allocated to specific project activities that are clearly
linked to the project’s climate change vulnerability context.
Where climate change adaptation activities are planned in projects that have additional objectives,
adaptation finance tracking takes into account the estimated incremental cost or investment
associated with such discrete project components — or elements of project design — that addressrisks and vulnerabilities under conditions of current and future climate change, and compares
these with a project design that does not consider such conditions.
When it is not possible to estimate incremental cost or investment directly from project budgets —for example, when using policy instruments or balance-sheet lending, equity investments or creditline lending through financial intermediaries — a proportion of the project cost or investment
corresponding to adaptation activities may be used to represent the incremental amount.
Table 1 in Annex B of the 2016 Joint Report on Multilateral Development Bank’s Climate Finance23
provides a list of examples illustrating sector-specific and subsector-specific adaptation activities
in which MDB adaptation finance may be identified. The list is not meant to be exhaustive, nor is it
intended for application as a positive list. It is for illustrative purposes only. Any adaptation financethat is identified needs to be substantiated through the application of the three-step processdescribed above.
For an illustration of how the MDB adaptation finance tracking methodology is applied todevelopment operations, see Table A.B.1.
Adaptation finance tracking among development finance institutions
A growing number of institutions and initiatives work on the methodologies for tracking climate
adaptation finance and make increasing efforts to harmonise these approaches. The MDBIDFC common principles result from such joint work. These institutions continue their efforts
for greater harmonisation, comparability and transparency of their reported climate finance. In
addition, the OECD, which designed and applies the OECD-DAC Rio Markers, recommends the MDB
methodology‘s three-step approach to tracking climate adaptation finance as a “best practice”.
The OECD’s efforts have resulted in improved guidance for tracking bilateral official development
assistance (ODA) targeting climate change adaptation.
In 2021, the MDBs commenced a review of the joint MDB methodology for tracking adaptation
finance. This review aims to take stock of recent developments in the field of adaptation finance,
MDBs’ efforts to support climate adaptation and resilience through a wide range of sectors beyond
23

www.ebrd.com/2016-joint-report-on-mdbs-climate-finance.pdf

60 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

traditional infrastructure sectors, and the increasing diversity of financial modalities that are used
to support adaptation and resilience. This review will complement ongoing efforts by MDBs toenhance the robustness and transparency of climate finance tracking and support climate action,in line with the objectives of the Paris Agreement.
Table A.B.1. Case study #1 of tracking adaptation finance in projects
Project focus

Water and wastewater management

Sector

Water and other urban infrastructure and services — Urban policy, institutional and capacity
development

Brief descriptionof project

The programmatic policy-based loan (PBL) aims to improve access to basic urban services byaccelerating a series of policy actions and reforms that will mainstream performance-linked
funding for urban service delivery. The programme reforms will establish and operationalise (i)national and subnational policies, guidelines, and programmes for accelerated achievement of
universal water supply and improved sanitation service delivery with associated urban reforms;(ii) policies and programmes for providing affordable housing to urban migrant and industrial
workers, working women, and the poor; and (iii) policies and guidelines for performance-based
fiscal transfers. Subprogram 1 will establish essential policies and guidelines at the national level.
Subprogram 2 will prepare and commence the specific reform actions and programme proposals
at provincial state and city levels following the set policies and guidelines under subprogram 1,
which will be enforced through performance-based grants.

Climatevulnerability
context

Urban sector in the country is vulnerable to negative impacts of climate change with insufficient
infrastructure base and its sensitivity to change in precipitation and temperature. A climatechange risk assessment was undertaken during programme preparation and identified how basic
urban services are sensitive to a changing climate. The monsoon precipitation over the country
has declined over the last few decades and there has been a shift towards more frequent dry
spells. Basic urban service such as water supply is sensitive to these changes as availability ofwater sources is affected by rainfalls while higher temperature could increase water demand. The
frequency of daily precipitation extremes has increased and is projected to further increase with
global warming, which will lead to more frequent and extreme floods and landslides damaging
wide range of urban infrastructure including water supply, wastewater management system andhousing.

Statement of
purpose or intent
to reduce climate
vulnerability

The programme, though PBL modality, will accelerate implementation of policy actions that are
crucial for structural urban reforms. The programme aims to provide basic infrastructure services
and a decent quality of life to people by building a clean and sustainable environment to tackle
the adverse impact of climate change. Several policy actions under the programme are alignedwith the government’s strategy to address climate change and contributes to climate adaptation
though enhancing efficient use of water, conservation of water resources, and drought and floodrisk management.

Project activities
linked to
reducing climate
vulnerability

Under subprogram 1, the national government approved a national urban water mission, underwhich several policy actions incentivised local governments for reforms through provision of grantsthat directly and indirectly contribute to building climate resilience such as:• Reducing non-revenue water and reuse of treated wastewater to meet at least 20% of water
demand will reduce water extraction and contribute to conservation of water resources
including groundwater contributing to increased climate resilience• Rejuvenating urban water bodies to augment fresh water supply, with the objectives ofdeveloping green spaces to augment water conservation and amenity value, reducing flood
impacts, and maintaining a positive groundwater balance which would help in strengthening
climate resilience• Bringing in public-private partnerships in water sector to encourage private investments
supporting adaptation elements• Instituting a policy to promote sustainable building practices such as rainwater harvesting, andadopting innovative and replicable technologies for green and climate-resilient construction
meeting diverse geo-climatic conditions• Making fiscal transfers from national government to local governments partly conditional uponachieving targets under national water mission• Rolling out of operational guidelines essential to realise above objectives• Capacity building for local governments in design of climate change and disaster resilient
infrastructure.

ANNEX C: METHODOLOGIES AND DEFINITIONS | 61Project focus

Water and wastewater management

Type of financial
instrument

Programmatic Approach and Policy-Based Loan, and Technical Assistance Grant

Estimation ofadaptation
finance

Subprogram 1 is $350 million financed by MDB. Climate adaptation finance is $75.69 million or
22% of the subprogram 1 cost.

Table A.B.2. Case study #2 of tracking adaptation finance in projects
Project focus

Institutional Strengthening of the National Development Bank

SectorFinance, Competitiveness & Innovation

Brief descriptionof projectThis project aims to support the recovery of private sector exporters from the economic impactsof the COVID-19 pandemic; enhance access to finance for firms in underserved segments andlagging regions; and strengthen the institutional capacity of the country’s National Development
Bank.

Climatevulnerability
context

The country is highly vulnerable to the impacts of climate change with climate projections
indicating hotter and drier conditions in the next few decades and an increased frequency andintensity of extreme weather events including droughts, heat waves, and wildfires. In addition tophysical climate risks, the country is also vulnerable to transitional climate risks linked to changes
in regulations, and investor and consumer behaviour.

Statement of
purpose or intent
to reduce climate
vulnerability

Support for institutional capacity reforms will help integrate sustainability and climate resilience
considerations in the National Development Bank’s business operations.

Project activities
linked to
reducing climate
vulnerability

Capacity-building support will enable the National Development Bank to implement institutional
reforms and strengthen its resilience to climate change by (i) integrating climate risks andvulnerabilities in procedures related to export financing; and (ii) developing integrated
environmental and social sustainability and climate resilience principles, policies, and proceduresthat would systematically cover all business operations and decision making for all risk levels.

Type of financial
instrument

Investment Loan

Estimation ofadaptation
finance

The total financing for this project was $242 million and financed by the MDB. Adaptation finance
was estimated at $35 million (around 15% of the MDB’s project financing) to account for the
proportion of the project’s investments directly addressing climate change adaptation.

Table A.B.3. Case study #3 of tracking adaptation finance in projects
Project focus

Post-disaster reconstruction and recovery, flood risk management

Sector

Water resources and flood risk management, urban infrastructure, transport

Brief descriptionof project

In response to the urgent need of the government for post flood recovery, an emergency loan to thegovernment to support the recovery efforts was proposed. The scope of the proposed emergency
project is in line with the government’s Master Plan for post-disaster reconstruction and recovery.
The project aims to (1) support the post-disaster rehabilitation and recovery in three worst affectedmunicipalities, and (2) strengthen the capacity of the three municipalities in integrated flood risk
management and flood emergency response. As an emergency project, a framework approach isadopted for overall project design while a list of project activities consistent with the framework is
proposed by the government based on the agreed sub-project selection criteria.
The total project cost is $1.399 billion, with MDB providing $1 billion.

62 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Project focus

Post-disaster reconstruction and recovery, flood risk management

Climatevulnerability
context

The province being targeted by the project spans four large river basins. With its uniquegeographical and hydrometeorological characteristics, it is one of the provinces most vulnerable
to flood and drought risks in the client country. With climate change, heavy rainfall events havebecome more frequent and intense. Of the 66 years from 1950 to 2015, flooding occurred in 32
years, with a less than three-year recurrence interval, and in each of these years the flooded areain the province was greater than 667 000 hectares. In 2021, heavy rainstorms struck the province,with the hourly maximum rainfall of 201.9 mm breaking historic records of precipitation in the land
territory of the client country. The flood led to significant losses and damage: lives of more than
300 people lost; over 1 million hectares of cultivated lands flooded; houses of 30 000 families
collapsed; nearly 1.5 million people displaced or evacuated; and severe damages to infrastructure
and other public assets including urban and rural roads, bridges, water utilities, drainage systems,
dykes, and dams. The direct economic losses were initially estimated at around $17.5 billion.

Statement of
purpose or intent
to reduce climate
vulnerability

Fully recognising that damaging flood events are to become more frequent and more intense
under a changing climate, the client country and the MDB concluded that it is imperative to build
in climate resilience in proposed investments and disaster risk reduction activities, and so too inthis emergency project. Therefore, this project will be implemented in stages to achieve two goals:
1) to meet the urgent need for rehabilitation and reconstruction of the essential infrastructure
required for quickly restoring social and economic activities; 2) to achieve the medium- and longterm sustainability and climate resilience of sub-projects.

Project activities
linked to
reducing climate
vulnerability

Mainstreaming climate adaptation in the project design is one of the key design objectives. The
project interventions will include not only “build back” activities but also “build better” measureswith the objective to increase climate resilience and provide for long-term sustainability. The MDB
will support the implementing entities to take climate adaptation measures into feasibility studies,
technical designs and constructions. Specific adaptation measures will include application ofhigher flood protection standards, nature-based solutions and combination of grey and green
infrastructure, climate-resilient construction materials, as well as smart river management
system, integrated flood risk management system and enhanced capacity for emergency
response.

Type of financial
instrument(Emergency) Investment loan

Estimation ofadaptation
finance

The project consists of three sub-projects in three cities, with the following components with MDB
finance:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Integrated river management ($317.6 million);
Smart water and emergency response system ($13.1 million);
Emergency response capacity enhancement ($14.2 million);
River and river canal rehabilitation ($162.4 million);
Urban drainage system and roads improvement ($34.9 million);
Urban roads and canal rehabilitation ($103.9 million);
Rural roads and bridge rehabilitation ($251.7 million);
Rehabilitation of national and provincial highways ($66 million);
Public transport infrastructure rehabilitation and repurchase of EV buses ($28.5 million)(Institutional) capacity improvement and consultancy services ($7.7 million).

No adaptation finance is reported under Component 9) which primarily contributes to mitigation
objective or component 10) which covers a broad range of issues.
A combination of proportional and incremental costing approaches was applied to estimate
adaptation finance under the other eight components of this project.
For Components 1) and 2), 50% of the total allocated cost was considered as adaptation finance as
they aim to enhance flood resilience as well as other environmental and development objectives;
Components 3) and 4) are designed to improve flood emergency response and therefore 100% of
the allocated cost is reported as adaptation finance; Based on literature, an incremental cost of
40% was used to estimate the adaptation finance under component 5) while an incremental costof 10% was used to estimate the adaptation finance under Components 6), 7) and 8).
The total adaptation finance under the project is therefore $391 million, representing about 39%of the total MDB finance for the project.

ANNEX C: METHODOLOGIES AND DEFINITIONS | 63

Table A.B.4. Case study #4 of tracking adaptation finance in projects
Project focus

Flood Impact Mitigation Project in Coastal Cities

SectorCoastal and riverine infrastructure

Brief descriptionof project• Flood mitigation project in coastal urban area with a focus on addressing recurrent flooding
and surge in the city and its suburbs. It addresses flood and coastal surge risks through thedevelopment of adapted engineering infrastructure solutions across the shorelines andthrough critical urban infrastructure to be built under the project. In addition, the project aims
to develop social interventions and safety net including low-cost coastal housing, access topotable water and short-term MSMEs grant for the vulnerable and flood exposed individuals in
the community.
• Strategically, the project falls under the implementation of the country’s National Climate
Change Adaptation Program of Action (NAPA) as it supports reduction of flood related risks andstrengthens urban resilience to climate change.

Climatevulnerability
context• Climate risk assessment shows that project location is highly vulnerable to natural disasters
including excessive flooding and frequent surge from the ocean. Natural disasters haveincreased in intensity in recent years and climate change is expected to further increase thefrequency of extreme weather patterns and natural hazards in the country thereby exposing
urban dwellers especially the urban poor to increasing environmental stress and poverty.
• In the past three decades, floods have displaced and affected over 600 000 people per
year. This has caused significant damage to public infrastructure, equipment, human health,
livelihoods and assets, and private property along with economic losses especially of the mostvulnerable population women and children. It is estimated that by 2030, more than a million
inhabitants of the project location could be displaced and impacted by coastal erosion andflooding.

Statement of
purpose or intent
to reduce climate
vulnerability• The project objective is to attenuate the impact of recurrent floods through adapted engineering
infrastructure solutions and integrated urban development approach. It focuses on physicalrestructuring of flood-prone zones, development of coastal lowlands, provision of essentialsocial services, and construction of resilient storm water drainage infrastructure in coastal
urban communities in beneficiary country.

Project activities
linked to
reducing climate
vulnerability• Adapted Engineering Infrastructure Civil Works Component: This component has subcomponents including (i) drainage of main area through masonry and slabbed main sewers
consisting of built-in drainage mat, built-in metal drip edge, and built-in termination bar;(ii) masonry drainage channels for all secondary roads developed for evacuation in flood
emergencies; (iii) construction of all weathered dykes and multi-layered secondary roads(coated with bitumen). The flood drainage network specification of 25% above BAU wasdeveloped and a layered network of 10 cm (CBR>60) with a 15 cm (CBR >30) foundation layer
was proposed.
• Social Infrastructure and Displacement Support Component: This component has subcomponents including (i) replacement of contaminated water with potable water and seweragesystem for entire community; (ii) building of durable and flood resistant electrification networkand (iii) affordable low-cost resilient housing for flood displaced victims. For the water network,
flexible all-weather PVC with dimension ranging from 160, 250, 315, 400 and 500 mm were
proposed.

Type of financial
instrument

Investment Loan

Estimation ofadaptation
finance

The total project cost is $57.9 million.
The proportional approach was applied.
For the adapted engineering infrastructure civil works component, the adaptation finance of 100%of this component (amounting to $13.75 million) was recorded due to the direct link of these subcomponents to mitigating flood and sea surge risks.
For the social infrastructure and displacement support component, the adaptation finance of 5%of this component (amounting to $1.776 billion) was recorded due to the humanitarian nature ofmost of the sub-components financed and less related to climate adaptation.
Total climate adaptation finance: $15.5 million
Share of climate finance: 26.8%

64 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX C.3 JOINT METHODOLOGY FOR TRACKING CLIMATE MITIGATION FINANCE
In order for MDB finance to qualify as climate mitigation finance, the MDBs apply the Common
Principles for Climate Mitigation Finance Tracking 24 to validate their investment as mitigation
finance. These common principles have been designed for use in ex-ante assessments and focus
on the type of activity financed, and not on its purpose or the origin of the financial resources. The
list of eligible activities is presented by sector. Policy actions, technical assistance and programmes
in support of the eligible activities are also eligible, provided that the link to eligible activities isclear or sufficiently demonstrated25. The results of the assessments are applied for reporting of
the climate change mitigation finance in the Joint Report on the Multilateral Development Banks’
Climate Finance.
The common principles recognise that a substantial contribution to climate change mitigation caninvolve the following three categories of climate change mitigation activities:
i. Negative- or very-low-emission activities, which result in negative, zero or very low GHG
emissions and are fully consistent with the long-term temperature goal of the Paris Agreement,such as carbon sequestration in land use or some forms of renewable energy.
ii. Transitional activities, which are still part of systems emitting material greenhouse gases(GHGs) but are important for and contribute to the transition towards a climate-neutral
economy, such as energy efficiency improvement in manufacturing that directly or indirectly
uses fossil fuels.
iii. Enabling activities, which are instrumental in enabling other activities to make a substantial
contribution to climate change mitigation, such as manufacture of very-low- emission
technologies.
On the 18 October 2021 the MDBs and IDFC published a new version of the common principles.
This new version of the common principles, including the list of eligible activities, was developed
over a period of two years, taking particularly the following two aspects into account:i. Consideration of new mitigation activities that are required in order to achieve the structuralchanges in the economy pointed out by the IPCC as necessary to achieve the goals of the Paris
Agreement.
ii. Identification of activities that, despite reducing GHG emissions in the short term, risk a longterm lock-in of emissive technologies, thereby undermining the long-term temperature goal of
the Paris Agreement. Such activities cannot be considered as climate mitigation finance.
The MDBs agreed to operationalise the new version of the common principles starting in 2021 overa period of two years, during which time the list of eligible activities will be used as an exhaustive list.
At the end of the two-year period, the MDBs and the IDFC will adjust the list, if required, based on
their respective experience. The aim at the end of this two-year operationalisation period is to have acommon list of eligible activities, considered an exhaustive list by both the MDBs and the IDFC.
A major review of the methodology is planned within five years of the publication of the new versionof the common principles, whilst minor amendments may be made on a more regular basis. These
reviews will account for technology developments that may enable deeper decarbonisation of
economic activities. Thus, the current list includes some activities that may not be eligible in the
future as the transition to an economy with net-zero GHG emissions progresses.
Please see full list of the common principles and list of eligible activities
https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf

24https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf

25 Each eligible activity is understood to include policy actions, technical assistance and programmes carried out in its support, which are
not listed separately. Only policy actions, technical assistance and programmes that cannot be directly linked to eligible activities described
elsewhere are listed separately.

ANNEX C: METHODOLOGIES AND DEFINITIONS | 65

Table C.3.1. Case study #1 of tracking mitigation finance in projects
Project focus

Energy and resource efficiency investments

SectorElectrical Equipment, Appliance & Component Manufacturing

Brief descriptionof project

The proceeds of the loan will be used by the company to support the investment programme in its
manufacturing facilities in the target country during 2021-2024 period. The loan consists of two
facilities a) The Green Facility and ii) The investment facility.
The Green Facility will finance the company’s climate investments under its Green Financing
Framework (“GFF”) across its production facilities in the country. Investment Facility will finance(i) modernisation investments in Refrigerator Plant, (ii) new production line in Refrigerator
Plant, which will be built using the state-of-the-art technology taking into the best practices anddeveloped novel production technologies by the company, (iii) modernisation, health and safety,
and various other investments in Cooking Appliances Plant.
The allocation of the proceeds under the Green Facility will be reported by the company annually,
with ex-post external verification of climate use of proceeds in line with LMA GLP. The use ofproceeds under the investment facility will be controlled at the project implementation stage via
annual monitoring reports and site visits if necessary.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING
Version 3 —18 October 2021):

Manufacturing — Support for low-carbon Development
9. Projects that support production of components, equipment
or infrastructure dedicated exclusively to utilisation in the renewable energy, energy efficiency
improvement, or otherlow-carbon technologies.

(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity
Type of financial
instrument

Investment loan

Calculation of
mitigation finance,
including basis(for example,
eligiblecomponents)

The Bank committed €150 million, of which 48% is conservatively estimated as Mitigation finance.
€72 million of mitigation finance was expected to deliver significant climate change mitigation
benefits as resulting in a reduction of greenhouse gas emissions at the level of company’s
operations and product end-use level. The Bank’s financing will help the company achieve its 2030
climate targets formulated in line with the Science-Based Targets Initiative (“SBTi”). Investmentsthat were considered as mitigation activities are (1) Renewable Energy Systems, (2) investments
resulting from Scope 1-2 emission reductions in line with the company’s SBTI target of 30% by
2030 (from a 2018 base year), (3) investments resulting from Scope 3 emission reductions —from the use of sold products — in line with SBTI target of 15% over the same timeframe, (4)building insulation, (5) energy management.

Type of mitigation
finance (ownresources,
co-finance)

MDB own account66 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.3.2. Case study #2 of tracking mitigation finance in projects
Project focus

RDI in renewable energy and low-carbon technologies

SectorResearch, development and innovation

Brief descriptionof project

The project covers research, development and innovation (RDI) in renewable energy andlow-carbon technologies.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING
Version 3 —18 October 2021):

Research, development and innovation — Research on, or development of, renewableenergy, energy efficiency improvement, low-carbon technologies, or other technologies
instrumental to achieving full decarbonisation.

(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity
Type of financial
instrument

Investment loan

Calculation of
mitigation finance,
including basis(for example,
eligiblecomponents)

The project covers RDI in renewable technologies, including onshore and offshore windfarms and solar, targeting:• The improved performance and efficiency of renewable energy production assets,enhancing the competitiveness and thus the deployment of these technologies;• The extension of economic life and up-time of existing renewable energy assets, which
contributes directly to a larger share of renewable energy in the overall energy mix;
• The implementation of new technologies at the demonstration level, hence accelerating
the faster adoption of renewable energies;• The development of more cost efficient and autonomous concentrated solar panel (CSP)
technology to be used during construction works in remote locations;• The deployment of remote operation automation, digital twins and smart sensoring toincrease efficiency and performance of renewable energies installations operation andmaintenance;• The deployment of augmented and virtual reality solutions during engineering,
construction, operation and maintenance of renewable energies assets to maximisezero based field operations;• The deployment of renewable material/feedstock traceability, such as biomass
blockchain traceability.
Moreover, the RDI programme aims at exploiting the development of CO 2 capture
technology and recovery system for the production of carbonates as raw material for
construction.
The project is therefore fully considered climate mitigation finance.

Type of mitigation
finance(own resources,
co-finance)

MDB own account

ANNEX C: METHODOLOGIES AND DEFINITIONS | 67

Table C.3.3. Case study #3 of tracking mitigation finance in projects

Project focus

Integration of PV, batteries for energy storage and an electrolyser for the production ofgreen hydrogen

SectorEnergy and manufacturing

Brief descriptionof project

Installation and operation of a medium-scale photovoltaic plant (nominal capacity 100 MWp),
including a battery storage system, directly connected to a large-scale electrolyser for hydrogenproduction (20 MW), using partially the renewable (PV) energy capacity installed nearby. The
hydrogen will be supplied to the fertiliser industry, situated nearby the PV plant, replacing hydrogenproduced from natural gas.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING
Version 3 —18 October 2021):• Energy — Renewable energy generation — 1. Generation of renewable energy with low lifecycle
GHG emissions to supply electricity, heating, mechanical energy or cooling.
• Energy — Energy storage and network stability — 9. Energy storage or measures to improve
network stability that increase consumption of very-low-carbon energy.
• Manufacturing — Low-carbon fuels — 10. Production or use of low-carbon hydrogen.

(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity
Type of financial
instrument

Investment loan

Calculation of
mitigation finance,
including basis (forexample, eligible
components)

The project covers the production of renewable electricity, trough PV panels, its storage (excess)in batteries and the production of green hydrogen (using renewable electricity self-produced andlow-carbon electricity from the grid). The project is therefore fully considered climate mitigation
finance.

Type of mitigation
finance (ownresources, cofinance)

MDB own account68 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.3.4. Case study #4 of tracking mitigation finance in projects
Project focus

Rural development

SectorNatural Resources and Rural Development

Brief descriptionof project

AAA County is rural and was one of the remaining national poverty counties in the country in2020. The county’s institutional capacity for environmental planning and management is weak.
The country faces various restrictions on development activities mainly because of concerns overdegradation of quality and quantity of water in the BBB Reservoir. AAA Country is also part of the
CCC River watershed in the DDD River basin, which has been designated a national key ecological
function zone by the government; it is geologically and ecologically fragile because of extreme
soil erosion and rocky desertification. The frequency and intensity of devastating floods haveincreased from 1990 to 2020 as a result of ecological degradation and climate change. Most of
the county’s rural population lacks basic water and sanitation facilities, which negatively impacts
public health and the environment.
Poverty, declining water quality, and ecosystem degradation are the three most prominent
development challenges in AAA County. Considering the complex nexus among these three
key problems in the county and their potential threats to water quality and quantity in the BBB
Reservoir, the AAA County Government (ACG) urgently needs to adopt a holistic approachto development planning that leverages benefits from individual sector interventions anddevelops synergies in support of broader development. To do so, ACG needs to improve its water
management planning and strategy development as well as enhance institutional coordinationand technical capacity for more effective implementation.
The project will promote environmental improvements and green development in ecologicallysensitive rural areas by (i) building the capacity of the ACG in environmental planning andmanagement; (ii) promoting soil and water conservation through the use of high-level technology,
including remote sensing, smart drip irrigation, and peripheral rainfall runoff harvesting; and (iii)
facilitate recovery in the project area from the economic impacts of COVID-19 through inclusive
rural economic development.

Classification:

Adaptation and Mitigation Finance.

(1) mitigation and(1) Mitigation
1. Energy; 1.1. Renewable energy generation.
4. A griculture, forestry, land use and fisheries; 4.6. Forestry: GHG-emission reduction
and carbon sequestration.
6. Solid waste management; 6.7. Landfill gas capture, abatement and utilisation.

(2) adaptation
finance(2) Adaptation:
Coastal and riverine infrastructure.
Energy, transport and other built environment and infrastructure.
Institutional capacity support or technical assistance.
Other agricultural and ecological resources.
Calculation ofclimate finance,
including the basis(for example,
eligiblecomponents)

Mitigation ($ million)$8.26
Adaptation ($ million)$10.03The cost of each of the climate change activity were estimated and counted as climate finance.
Mitigation activities in the project include:• Use of solar power in smart irrigation system and solar insecticidal lamp;• Ecological restoration and ecological construction of forest areas of around 827 hectares;• Disposal of municipal organic waste such as kitchen waste and municipal sludge. Disposal
facilities to be purchased could handle 30 tons per day of kitchen waste, and 70 tons per dayof municipal sludge.
While adaptation activities include: i) installation of hydrometeorological and water quality monitor
devices; ii) peripheral rainfall harvest facilities; iii) intelligent irrigation systems, and iv) increase inembankment height, among others.

Type of financial
instrument

Investment loan

Type of finance(own account,co-finance)

MDB own accountCounterpart

ANNEX C: METHODOLOGIES AND DEFINITIONS | 69

Table C.3.5. Case study #5 of tracking mitigation finance in projects
Project focus

Data Center Development Fund

SectorInformation and Communications Technology (ICT) and Digital Technologies

Brief descriptionof project

Many low- and mid-income economies lack their own domestic data infrastructure, and thedisparities in data centre penetration among countries with different income levels are wide.
This reflects shortcomings in the investment climate where major global investors have largely
shunned investing in emerging and frontier economies.
The MDB has committed $150 million to invest in the development of data centres that mostly
serve emerging markets through the Fund, a closed-end private equity vehicle, as investments
are becoming more essential nowadays with the acceleration of 5G technology and other highspeed/supercomputing digital infrastructure due to the pandemic.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING(1) Information and Communications Technology (ICT) and Digital Technologies(2) Category: Energy efficiency and renewable energy(3) Eligible activity: Greenfield data centres that meet best international practices for energy
efficiency or that are supplied largely by on-site renewable energy generation

Version 3 —18 October 2021):(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity
Type of financial
instrument

EquityCalculation of
mitigation finance,
including basis (forexample, eligible
components)

The MDB has committed $150 million to this project and counted 80% of the financing as
mitigation finance, by setting a target together with the client that at least 80% of the data centres(by cost) will meet the eligible activities as per the Joint MDB methodology on Climate Mitigation
Finance Tracking, namely:

Type of mitigation
finance (ownresources,
co-finance)

MDB own account(a) E nergy efficiency performance of the data centres following internationally recognised bestpractice guidelines, or substantially better than market standards or benchmarks;(b) Data centre buildings following green building certification criteria provided by themethodology; and(c) Where applicable, on-site renewable energy generation will be explored to supply the power
needs.

70 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.3.6. Case study #6 of tracking mitigation finance in projects
Project focus

Improving education outcomes for girls by reducing learning disruptions

Sector

Education

Brief descriptionof projectThis project aims to improve education for girls in the context of a post-conflict nation which isfacing the harsh impacts of the COVID-19 pandemic, and the subsequent compounded impacts
on human development outcomes, especially for women and girls. By addressing the key issuesof social barriers to women’s education, learning poverty in terms of lack of resources andschools, and gender disparities, this project aims to incorporate climate-resilient measures intoa multisectoral approach to improve human capital outcomes for young girls who are proven to
be more vulnerable to climate risks in the region. It will minimise disruptions to girls’ educations
by financing access to health services (such as family planning and nutrition), infrastructure
investments, and the provision of scholarships.

Classification(as per COMMON
PRINCIPLESFORCLIMATEMITIGATIONFINANCETRACKING

Mitigation finance eligible under the following activities:

Version 3 —18 October 2021):(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity

Activity 9.1:
• Sector (Table 9): Buildings, public installations and end-use energy efficiency.
• Category: Energy efficiency, on-site renewable energy, CO2e emission reduction, and carbon
sinks in buildings.
• Eligible Activity (Activity 9.1): Measures that reduce net energy consumption, resource
consumption or CO2e emissions, or increase plant-based carbon sinks in greenfield andbrownfield buildings and associated grounds.
Activity 12.13:• Sector (Table 12): Cross-Sectoral Activities.
• Category: Capacity building and information dissemination.
• Eligible Activity (Activity 12.13): Education, training, capacity building or awareness-raising
focused on climate change mitigation.
Project’s Eligible Activities: Energy efficient design of schooling spaces, including the installation ofsolar panels, content on GHG emissions in the school curriculum, life skills for the green economy,use of green cookstoves, and incorporating content on climate change mitigation in teacher/manager training.

Type of financial
instrument

Investment loan

Calculation of
mitigation finance,
including basis (forexample, eligible
components)

The total financing of this project was $250 million, of which mitigation financing accounted foraround 7.8% of the total financing. Mitigation activities have been embedded within the approachto improve learning outcomes by:• Including content on GHG emissions in the student curriculum (for example life skills for thegreen economy, promoting the use of green cookstoves, and promoting plantation drives aspart of the life skills training).
• Training for teachers and managers of the schools.
• Raising awareness on climate action as part of the core element of the schooling programme.
Infrastructure investments and improvements also ensure the design with energy efficiency
principles, installation of solar panels, and energy audits.

Type of mitigation
finance(own resources,
co-finance)

MDB own account

ANNEX C: METHODOLOGIES AND DEFINITIONS | 71

Table C.3.7. Case study #7 of tracking mitigation finance in projects

Project focus

Digital Connectivity in Schools to Accelerate Education and Learning during COVID-19
Pandemic

SectorInformation and Communication Technology (ICT)

Brief descriptionof project

The project aims to help restore and restart the country’s educational system and connect
communities to critical information and opportunities in the digital economy, and to accelerate
post-COVID learning. It will accelerate connectivity and online learning and service initiatives forchildren and their communities and drive economic stimulus. ICT-based communication offers
immense potential to support the delivery of information including educational and climate
information.
This project focuses on connecting schools to the internet at community level. The components
financed by the project include ICT infrastructure, such as hardware, connectivity and powersources for connection nodes, solar panels, batteries, central server, community monitoring
centres and data collection stations.
The project activities support the cost-effective connection of approximately 11 200 schools andalso equip a further 3 million people in local communities with ICT access, educational tools andrelated skills.
Specifically, the project supports the deployment of solar energy as a source of power in ruralcommunities to contribute to reducing the carbon footprint of the project and the community atlarge. In addition, it has indirect emission reduction benefits by reducing the emissions that would
otherwise have been generated through daily commuting and transportation of students andpupils to educational centres across the project areas (although this was not estimated and assuch not counted). Also, the project responds to both development and humanitarian challenges
using clean energy options to reach remote and previously unreached communities in a timely
manner.
This project provides an example of the intersection between ICT, COVID-19 recovery, and climatesmart development.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING
Version 3 —18 October 2021):(1) Sector(according totables 2-12 ofCPs)(1) Information and communications technology (ICT) and digital technologies.
(2) This project is eligible under the category of energy efficiency improvement, renewable energy
deployment, and/or CO2e-emission reduction in existing data centres.
(3) S olar energy generation in all ICT centres and hubs, solar electricity utilised in the built dataand internet hubs.
Other potential climate mitigation finance opportunities not considered by the project include
the efficiency of the ICT equipment to be procured for the project and indirect emission reduction
benefits from emissions that would otherwise have been generated through daily commuting andtransportation of students and pupils to educational centres across the project communities.
Based on the principle of conservativeness, these aspects were excluded from the estimatedclimate finance.

(2) Category(3) Eligible activity
Type of financial
instrument

Investment loan.

Calculation of
mitigation finance,
including basis (forexample, eligible
components)

Total project cost: $6.9 million.

Type of mitigation
finance(own resources,
co-finance)

MDB own accountRenewable energy component: $1.5 million.
Total share of climate finance: 21.7% of total project cost ($1.5 million).

72 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX C.4 FINANCE THAT BENEFITS BOTH ADAPTATION AND MITIGATIONThe MDBs identify some components and/or sub-components, or elements or proportions ofprojects, which help to reduce GHG emissions while also reducing climate vulnerability, thereby
delivering dual benefits of mitigation and adaptation. Where the same project, sub-project or
project element contributes to both mitigation and adaptation, the MDB’s internal processes will
determine which proportions to count as mitigation or as adaptation so that the actual financing will
not be double-counted. Some MDBs report projects where the same components or elements or
proportions contribute to both mitigation and adaptation as a separate category (see Table C.4.1).
The MDBs work continuously to improve work on the best reporting method for such projects.
For 2021, the AIIB, EBRD and IDBG have tracked dual-benefit figures separately, while other MDBs
have split the dual-benefit finance between adaptation and mitigation, according to their internal
systems. There is no double counting in either approach. Table C.4.2 provides greater detail on the
instrument types used in adaptation, mitigation and dual-benefit finance.
Table C.4.1. MDB adaptation, mitigation and dual-benefit climate finance (in $ million)
MDB

Adaptation finance

Mitigation finance

AIIB

583

2 184

Dual-benefit finance

EBRD

309

6 039

27

6 375

IDBG

1 614

3 275

668

5 557

Total

2 506

11 499762

14 767

68

Total
2 835

Note: Numbers may not add up due to rounding.

Table C.4.2. MDB adaptation, mitigation and dual-benefit climate finance, by instrument type (in $ million)
Instrument type

Adaptation finance

Mitigation finance

Dual benefit

Total

Investment loan

12 14151 054727

63 902

Policy-based financing

1 520

2 517

0

4 037

Grant

2 640

1 632

14

4 286

Guarantee

145

2 250

0

2 395

Equity

38

1 245

0

1 283

Line of credit

69

1 380

0

1 449

Results-based financing

1 181

935

1

2 117

Other

1 044

1 182

21

2 247

Total

18 75963 090762

81 717

Note: Numbers may not add up due to rounding.

ANNEX C: METHODOLOGIES AND DEFINITIONS | 73

Table C.4.3. Case study #1 of tracking a dual-benefit project
Project focus

Improving healthcare/healthcare facilities/buildings

Brief descriptionof project

The project aims to support the health system of the beneficiary country to meet the healthneeds of the population, to: (i) integrate primary and secondary care services; (ii) improve access,coverage and quality of community, ambulatory, and hospital services through a person andcommunity-centred model of care; and (iii) increase health services efficiency. Some componentsof this project include building and renovating of care facilities including components of resiliency
and meeting green building certification criteria.

Classification fordual benefit:(1) mitigation finance (positive list of eligible activities):(1) mitigation and(2) adaptation
finance• Table 1: Buildings (Public Installations and End-Use Energy Efficiency, Energy efficiency,
renewable energy, CO2e-emission reduction, and carbon sinks in green buildings, (eligible
activities 2 and 3)).
(2) adaptation finance (Climate vulnerability context, statement of purpose or intent to reduceclimate vulnerability, project activities linked to reducing climate vulnerability).
The beneficiary country is a small island that faces high-risk for natural disasters exacerbated byclimate change. This country is vulnerable to high sea levels, tropical and extratropical cyclones,
increasing air and sea surface temperatures, and changing rainfall patterns. This has severely
affected the infrastructure, equipment, medical supplies and electrical and water supply. In
previous years, hurricanes have damaged all three public hospitals in the island, mainly roof
damage, and the corporate building of the Ministry of Health have also suffered from floods. One of
the components of this projects aims to enhance the capacity for provision of primary care throughcreating a stronger preventive maintenance system for medical infrastructure and equipment.
The upgrades of the infrastructure will include disaster risk and climate change adaptation andmitigation actions to increase resilience. The adaptations comprise energy and water efficiency
standards, and a disaster and climate change resilient design for several healthcare facilities.

Calculation of(1) mitigation and(2) adaptation
finance

The Climate Finance Contribution estimation considers that all the clinics intervened will havebasic Level 1 EDGE certification considerations as well. With this, the estimation considers thatinvestments in construction, architecture and supervision can be considered as a mitigation
and adaptation contribution. The components of the project related to the construction andrehabilitation of the healthcare clinics is therefore considered dual finance. This component isequal to $17.787 billion which represents 44% towards climate finance.

Type of financial
instrument

Investment Loan

Type of finance

MDB own accountTable C.4.4. Case study #2 of tracking a dual-benefit project

Project focus

Green Small and medium-sized enterprises
Sector: Industrial, Commercial and Agribusiness

Brief descriptionof project

Senior unsecured loan in favour of National Bank. The National Bank will on-lend the funds forinvestments in climate change mitigation and adaptation technologies and services. The facility
will be accompanied by a comprehensive technical assistance to support implementation andverification and expected to support incorporating climate-related considerations in National
Bank’s corporate governance framework.

Classification:(1) mitigation and

Mitigation
3. Manufacturing — Energy Efficiency
1. Brownfield industrial energy efficiency improvement(2) adaptation
finance

Adaptation
Crop and Food production — Primary agriculture and food production

74 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Project focus
Calculation ofclimate finance,
including thebasis (forexample, eligible
components)

Green Small and medium-sized enterprises
Sector: Industrial, Commercial and Agribusiness
The Bank provided a senior unsecured loan to the National Bank in the amount of up to$100 million.
Adaptation: $10 million accounted proportionally, considering the country’s extremely water
intensive power systems in a context of increasing water stress, this investment in a near-zerowater consuming power generation technology aims to reduce the baseline water intensity of thecountry’s power system. The project will additionally tackle water consumption in the agribusinesssector through the financing of drip irrigation systems to replace traditional floor irrigation
techniques. Amount of expected water savings informed the appropriate proportion of the eligible
adaptation finance attribution.
Mitigation: $90 million accounted based on 80% of the investments is for energy efficiency
and 20% for Renewable Energy technologies. Potential energy efficiency investments include
process machinery replacements, HVAC, industrial furnace/boiler, insulation technologies. The
programme supports the implementation of energy improvements with the help of Best Available
Technologies (“Green Technology Selector”) that are locally available in the market where Highperforming equipment and materials are identified, pre-assessed (for their performance) and will
be suggested for various types of green investment.

Type of financial
instrument

Intermediary Finance

Type of finance(own account, cofinance)

MDB own account

ANNEX C.5 TYPES OF INSTRUMENTS
The types of financial instrument containing climate finance as reported for 2021 include thefollowing:a)Advisory services: MDB advisory services include advising national and local governments
as well as private sector players on a variety of topics, for instance how to improve theirinvestment climate and strengthen basic infrastructure. The MDB tracks and reports the costsof managing advisory programmes, which may consist of staff time, studies, and training withclients. Similar to investments, some programmes are 100% climate-related and some have a
climate component tracked in the overall programme budget.

b) Equity: Ownership interest in an enterprise that represents a claim on the assets of the entity
in proportion to the number and class of shares owned.
c)Grants: Transfers made in cash, goods or services for which no repayment is required. Grants
are provided for investment support, policy-based support and/or technical assistance andadvice.

d) Bond: A type of bond, the issuance of which is done by a client and supported by an MDB,
where the proceeds are applied exclusively to financing or refinancing, in part or in full, new
and/or existing climate projects.
Only the percentage of proceeds that are used for activities included in the joint MDB
methodology for tracking climate finance count as climate finance.
e)Guarantees: Guarantees are instruments provided by an MDB to cover commercial and noncommercial risk.
Guarantees support private sector investments, commercial borrowing by sovereign or stateowned enterprises, and/or commercial borrowing by the sovereign for budget financing andto support reform programmes. Guarantees are extended for eligible projects that enablefinancing partners to transfer certain risks that they cannot easily absorb or manage on theirown. Guarantees cover equity and a variety of debt a wide variety of debt instruments andsupport financial sector projects (including those of capital market investments and trade

ANNEX C: METHODOLOGIES AND DEFINITIONS | 75

financiers and non-financial-sector business activities corresponding to activities acrosssectors).
f)

Investment loans: Loans are transfers for which repayment is required.
Investment loans can be used for any development activity that has the overall objective ofpromoting sustainable social and/or economic development, in line with the MDBs’ mandates.
Proceeds used for activities included in the joint MDB methodology for tracking climate financecount as climate finance.
Refinancing: Refinancing is the replacement of an existing debt obligation with another debt
obligation under different terms.
Refinancing can be classified as climate finance subject to the following terms:• Refinancing of assets that have reached financial closure for the entire term of the projector that have passed the break-even point, provided that the client commits to originating
new climate deals for that amount within the next 24 months.
• Refinancing of assets where financial closure has not yet taken place, or the project has
not yet been fully constructed and is not yet operational.
• Bringing in additional long-term funds to replace short-term bridge loans or strengthening
the financial terms of the climate-related asset through long-term loans with better terms
than those of previous loans (for example, they correct a mismatch of maturity, adjust thecosts of asset construction, reduce exchange rate impact, replace expensive debt, and soon).
• Refinancing climate finance projects that have already been constructed or are alreadyoperational but have not passed the break-even point (for example, recently built solar
projects). The break-even conditions are confirmed by the investment team.
Working capital: Working capital is finance provided for operational expenditures.
Working capital is considered to be climate finance if leads to, enables or supports theimplementation and operation of activities included in the joint MDB methodology for tracking
climate finance.

g)Lines of credit: Lines of credit provide a guarantee that funds will be made available but nofinancial asset exists until funds have been advanced. Climate finance is the proportion of
the credit line that is committed to activities defined as eligible in the MDBs’ climate financetracking methodologies.

h)

Policy-based financing (PBF): Financing for a public borrower that helps the borrower toaddress actual or anticipated requirements for development finance of domestic or external
origins.
Policy-based financing supports a programme of policy and institutional actions for a particulartheme or sector of national policy. While it does not use the cost estimation approach foreach policy action, disbursements of PBF are conditional on the borrower fulfilling their policy
commitments in the lending agreement.
The proportion of this public financing that is reported as climate finance is the same as the
proportion of the climate-related “prior actions” agreed in order to allow the policy-based
financing to proceed. For example, if one in three prior actions are climate-related, one-third of
the resulting policy-based financing would be counted as climate finance.

i)

Results-based financing (RBF): Results-based financing directly links the disbursement offunds to measurable results in a government-owned programme.
RBF aims to increase accountability and incentives for delivering and sustaining results, improvethe effectiveness and efficiency of government-owned sector programmes, promote institutional
development and enhance the effectiveness of development. Proceeds used for activities
included in the joint MDB methodology for tracking climate finance count as climate finance.

76 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.5.1. Case study #1: types of instruments
Project focus

Low-carbon manufacturing

SectorManufacturing

Brief descriptionof project

The company is improving its production process to reduce its carbon footprint in terms of tCO2e/t
produced. A bond linked to performance on GHG reduction was issued.

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING

Table 3: Manufacturing.
Category: Energy efficiency.
Eligible activity: Brownfield industrial energy efficiency improvement.

Version 3 —18 October 2021):(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity
Type of financial
instrument

Sustainability linked Bond

Calculation of
mitigation finance,
including basis (forexample, eligible
components)

The Climate finance of the project was estimated according to the use of proceeds of thetransaction. In this case the applicable components are: i) efficient machinery acquisition, ii)
research in efficient machinery and efficient agricultural production, and iii) circular economy
practices.
Eligible CF categories:
1. Energy and resource efficiency: Highly efficient or low-carbon greenfield manufacturing
facilities or greenfield supplementary equipment or production lines at an existing
manufacturing facility.
2. Research, development, and innovation: Research on or development of renewable energy,
energy efficiency improvement, low-carbon technologies, or other technologies instrumental
to achieving full decarbonisation.
3. Energy and resource-use efficiency: An activity that enables a reduction in energy or material
use across a supply chain (upstream or downstream) through energy efficiency or resourceuse efficiency improvements in the existing supply chain, through a shift to a less carbonintensive supply chain, or by implementing circular economy systems.
In total the transaction was identified as 80% climate finance.

Type of mitigation
finance(own resources,
co-finance)

MDB own account + co-finance

Table C.5.2. Case study #2: types of instruments
Project focus

Strengthening the national health system for public health preparedness for COVID-19

Sector

HealthBrief descriptionof projectThis project aims to strengthen the national immunisation and health service delivery system ofa highly climate vulnerable country to respond to the COVID-19 pandemic through the effective
procurement and distribution of vaccines, and by developing appropriate standards for cold-chain
facilities for vaccines.

ANNEX C: METHODOLOGIES AND DEFINITIONS | 77Project focus

Strengthening the national health system for public health preparedness for COVID-19

Classification(as per COMMON
PRINCIPLESFOR CLIMATEMITIGATIONFINANCETRACKING

Mitigation finance eligible under the following activities:

Version 3 —18 October 2021):(1) Sector(according totables 2-12of CPs)(2) Category(3) Eligible activity

Activity 2.1:
Sector (Table 2): Energy
Category: Renewable energy generation
Eligible Activity (Activity 2.1): Generation of renewable energy with low lifecycle GHG emissions to
supply electricity, heating, mechanical energy or cooling
Activity 12.1:
Sector (Table 12): Cross-Sectoral Activities
Category: Energy and resource-use efficiency
Eligible Activity (Activity 12.1): An activity that enables a reduction in energy or material use acrossa supply chain (upstream or downstream) through energy efficiency or resource-use efficiency
improvements in the existing supply chain, through a shift to a less carbon-intensive supply chain,or by implementing circular economy systems.

Project’s Eligible Activities: Use of energy efficient principles and renewable energy generation inbuilding and retrofitting of cold-chain facilities and low-carbon procurement criteria for vaccine
distribution and storage.
Type of financial
instrument
Calculation of
mitigation finance,
including basis (forexample, eligible
components)

Investment loan
The total financing for this project was estimated at $75 million. Of this, around 10% was attributed
to mitigation finance. Eligible activities for mitigation finance mainly fell under Component 1:
Emergency COVID-19 Response ($74 million) and were as follows:
Procurement, storage, and distribution of vaccines that follow energy efficient principles and low
carbon, procurement criteria to avert greenhouse gas emissions.
Building, outfitting, and retrofitting of cold-chain facilities that incorporate renewable energy
generation and energy efficiency standards, thus ensuring that building back better and green
recovery remained at the core of the pandemic response.

Type of mitigation
finance(own resources,
co-finance)

MDB own account78 | 2021 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCEANNEX C.6 POST-2020 TARGETS RELATED TO THE JOINTMDB CLIMATE FINANCE TRACKING METHODOLOGY
MDB

Post-2020 targets related to the joint MDB climate finance tracking methodology

AfDB

Doubling of climate finance to $25 billion for the period 2020-25, giving priority to adaptation finance.
Source: The African Development Bank pledges $25 billion to climate finance for 2020-2025, doubling its commitments

ADB

By 2030, at least 75% of the number of its committed operations (on a three-year rolling average,
including sovereign and non-sovereign operations) will be supporting climate change mitigation andadaptation. Climate finance from the ADB’s own resources will reach $80 billion for the period 2019–30.
In 2021, ADB elevated its climate finance ambition to reach $100 billion, up by $20 billion by 2030.
Sources: Strategy 2030:
Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the PacificNews Release: ADB Raises 2019–2030 Climate Finance Ambition to $100 Billion

Medium-term targets: 65% of the number of operations (on a three-year rolling average) and $35 billion
for the period 2019-24.
Source: ADB Corporate Results Framework, 2019–2024: Policy Paper

AIIB

Reflecting its commitment to support the Paris Agreement, AIIB will aim to reach or surpass by 2025
a 50% share of climate finance in its actual financing approvals. The Bank currently estimates its
cumulative climate finance approvals to be $50 billion by 2030.
Source: AIIB Corporate Strategy: Financing Infrastructure for Tomorrow, AIIB to Fully Align with Paris Agreement Goals by
Mid-2023, Currently projects $50 billion investment for climate finance by 2030

EBRD

Green finance is to account for more than 50% of total annual EBRD investment by 2025.
The EBRD’s Green Economy Transition (GET) approach for the period 2021-25 is helping economies
where EBRD operates build green, low-carbon and resilient economies. The new approach sets a green
finance target of 50% of all EBRD’s Annual Bank Investment by 2025. This green finance is composedof climate finance for both mitigation and adaptation as well as finance addressing other environmental
objectives. The EBRD does not have separate targets for climate action. Nevertheless, it expects thatthe bulk of the finance will be classified as climate finance under the joint MDB approach, in line with
the EBRD’s current investment focus. For the previous period, 2016-20, cumulative climate financeaccounted for approximately 95% of the reported green finance.
Source: https://www.ebrd.com/what-we-do/get.html

EIB

The EIB will gradually increase the share of its financing dedicated to climate action and environmental
sustainability to more than 50% of its operations in 2025.
From 2021, the EIB will deliver against a target that comprises both climate finance and environmental
sustainability finance. Although the EIB does not use any separate climate finance target, the joint target
has been approved by the EIB’s Management Committee on the basis of modelling the climate finance asa percentage of total financing. This modelling has shown that climate finance comprises approximately
85% of the volume reported against the target. Additionally adaptation finance should increase to 15% ofclimate finance by 2025.
Sources:
The EIB Group Climate Bank Roadmap 2021-2025.;
The EIB Climate Adaptation Plan: Supporting the EU Adaptation Strategy to build resilience to climate change

IDBG

Climate finance in IDB Group operations (of climate finance approvals as a percentage of all financing
commitments for 2020-23) is ≥30% (annual floor). Note: IDB Invest reports at the level of closings (notapprovals).
Source: https://crf.iadb.org/en

IsDB

The IsDB is committed to a climate finance target of 35% of total financial commitment by 2025.
This 35% climate finance target excludes operations of IsDB Group members including the Islamic
Corporation for the Development of the Private Sector (ICD), the International Islamic Trade FinanceCorporation (ITFC) and the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC).
Source: IsDB 2020-2025 Climate Action PlanNDB

NDB aims to direct 40% of total approvals to projects contributing to climate change mitigation andadaptation, including energy transition, over 2022-2026.
Source: https://www.ndb.int/wp-content/uploads/2022/07/NDB_StrategyDocument_eVersion_07.pdf

WBG

The WBG announced a target for an average of 35% of its financing to be climate finance over the period2021-25. 50% of World Bank — IBRD and IDA — climate financing will support adaptation and resilience.
The 35% target is a significant increase from the 26% achieved on average in FY 2016-20 and an evenlarger increase in dollar terms as the World Bank Group’s total financing has also expanded.
Source: https://openknowledge.worldbank.org/handle/10986/35799

ANNEX C: METHODOLOGIES AND DEFINITIONS | 79

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