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Bank aus Verantwortung

Trends in Climate Change Adaptation Finance- The KfW Perspective -

Bonn – 2 March 2015

Dr. Jochen Harnisch

KfW Development Bank

Environment & Climate and Climate Policy Unit

Green Finance by KfW Group: 36 bln. USD in 2014Instruments: Grants – Concessional and Commercial Loans – Equity – Mezzanine Finance

KfW is a development bank owned by the German government with a broad domestic, European and international mandate - implemented by KfW, KfW Development Bank, DEG and KfW IPEX

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Worldwide Presence80 local offices

Tiflis

Jerewan

DamascusAmman

Kampala

WindhoekPretoria

Lusaka

Skopje Ankara

KievBelgradPrištinaSarajevo

Tirana

Berlin

Frankfurt

Istanbul

LondonBrussels

Cologne

Podgorica

Bonn

Juba

Cairo

Al-Bireh

Addis Abeba

Kigali

Rabat

Dakar

Accra

Ouagadougou

Jaunde

Bamako

Cotonou

Kinshasa

NiameyManila

Baku Beijing

Jakarta

KabulIslamabad

Ulan Bator

HanoiDhaka

BishkekTashkentDushanbe

Bangkok

Phnom Phen

KathmanduNew Delhi

Mumbai

Moscow

LimaLa Paz Brasilia

ManaguaTegucigalpa

Mexico-City

São Paulo

QuitoBogotá

Guatemala-City

New York

Sanaa

Maputo

Daressalam

Lilongwe

Abu Dhabi

Johannesburg

Nairobi

San Salvador

Singapore

Tunis

Rangoon

Bujumbura

Vientiane

Mazar-e-Sharif

1,321 1,682 1,634 1,680 2,067

2,498 2,651 754

556 463 559 670

544 248

39 19 350 453

695 691 976

1,188 925

2,051 1,794

1,440 1,534

3,481

2008 2009 2010 2011 2012 2013 2014

Mitigation

Adaptation

Environment

Others

New Commitments for Environment and Climate Total Commitments by KfW Development Bank 2008 - 2014

3.304 3.183

5.2674.874

4.4884.500

7.356

In million EUR

Commitments for Environment and Climate - KfW Development Bank

New Commitments for Environment and ClimateCommitments 2014 – adaptation by sectors and regions

1%

22%

11%

22%

4%

32%

Water & Waste

Social Infrastructure &Transport

Forest & Agriculture

Multisektoral

Financial

Others

13%

4%

20%

15%

15%

17%

29%Subsaharan Africa

Latin America

North Africa/Middle East

Europe/Caucasus

Asia/Oceania

Transregional

Commitments for Environment and Climate - KfW Development Bank

Sectors (CRS-Sector)

Regions

Million EUR

2,651

248

976

3,481Mitigation

Adaptation

Environment

Others

Financial Instruments – OverviewDiversity of business models and regional foci and mandates

Performance of partner countries and viability of projects

e.g. adaptation projects, capacity building, REDD

Market funds

Public funds

Source of financing

Grants / Budget support loans

loans at IDA and standard terms

Development loans

Promotional loans

Structured Funds, e.g. GCPF

Project financing

Concessionalfunds

e.g. RE projects

EE- and RE-financing

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Mainstreaming AdaptationSystematic climate change risk assessment

Screening

In-depth Assessment

› Step 1: Is planned project at significant risk of being substantially negative affected by climate change?

› Step 2: Compilation and analysis of the information about the past, current and projected future climate development

› Outcome: Identified adaptation activities are integrated into the project Project “climate proof”

Some Examples of CS2.0 & KfW Activities

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Brief summaries of available climate change information

Climate-Fact-Sheets

Climate-Focus-PaperGlobal Sea level rise

Maps illustrating robust climate change hotspots

Climate-SignalMaps

Hotspot Maps

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Adaptation Measures Prioritized According to Costs & Benefits

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Selected Examples of KfW Adaptation Projects Around the World

Water & Climate MonitoringZambia I&II (€ 9 M)

Flood ProtectionBangladesh (€ 11 Mio.)

Adaptation Programm eIndia (€ 139 M)

Irrigation ProgrammBolivia (12 Mio.)

Small Farms IrrigationNiger I&II (€ 25 M. )

Flood Damages Infrastr.Cambodia (€ 8 M)

Hydrolog. Monitoring System Jordan (€ 6 M)

Regional Climate FacilityPacific Islands (€ 6 M.)

Urban AdaptationCentral America I&II (18 Mio)

Costal Protection/EBACaribian (9 Mio.)

Costal Protection & IWRMTunesia (€ 75 M)

NRM & Anpassung Guatemala (9 Mio.) Sahel-Facility

B.O.A.D. (10 Mio.)Climate Adaption Fund

Ruanda (€ 10 M)

African Risk Capacity(€ 50 M)

Climate Insurance Fund (€ 68 M)

Outlook: KfW‘s Adaptation Workplan 2015/16

Our basic approach: Financing Infrastructure for Climate Resilient Development

I. Portfolio Development:

› Grow our adaptation project portfolio via the local financial sector incl. insurance platforms

› Build on experience from early scaling-up of grant based adaptation funding by Germany

› Support countries in building a strong pipeline of effective and attractive adaptation projects

› Help to get the GCF going – especially where direct access is not yet possible

II. Tools:

› Update climate data: Regionalisation of CMIP5/IPCC AR5 scenario results

› Execute two ECA studies: Barisal and San Salvador

› Capacity development for international and local project consultants

› Development and roll-out of sector specific sets of adaptation indicators

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Contact Details

Dr. Jochen HarnischHead of Environment and Climate Division

KfW Development BankPalmengartenstrasse 5–960325 Frankfurt am MainGermany

Phone +49 69 7431 - 9695Fax +49 69 7431 - [email protected]