“Investing in climate action can help secure people's incomes, livelihoods and food security, limit damage to their health and reduce forced displacements,” writes the bank. They added that they will invest in projects with a high social impact, like small-scale and off-grid renewable energy and “measures to enhance climate resilience for people and farmers in regions particularly impacted by climate change.”
They are not alone. According to a 2019 report by the International Development Finance Club (IDFC), a group of 26 national and regional development banks around the world, their members reported green finance commitments of $134 billion in 2018, which made up 22 percent of their total commitments. Climate finance, defined as the subset of green finance dedicated specifically to climate change mitigation and adaptation, made up the vast majority of these green finance investments.
In 2013, the World Bank, a CCAC partner, looked at how it could integrate short-lived climate pollutants in its activities. It analyzed 52 of its methane reducing carbon finance projects and found that for an investment of approximately US$543 million on these projects, US$228 million of direct carbon finance benefits are derived from the nearly 375,000 tons of methane emission avoided each year. Since then the Bank has increased its share of climate financing annually. In the 2018 fiscal year, the World Bank delivered a record-breaking a record-setting $20.5 billion in climate-related finance and made a commitment to increase the climate-related share of its lending from 21% to 28% by 2020.
Dorvil points out that the CCAC, as a forum that includes decision makers, sector specialists and different stakeholders from developing countries, can play a crucial bridge role for international financing institutions.
"One thing which is important to the bank is the CCAC network, it has very strong forums where you can meet sector people and stakeholders from everywhere in the world, which is unique," says Dorvil.
“The first concept paper or the pre-feasibility/feasibility study is missing,” Dorvil said of many climate projects— be it developing a plan to increase waste collection rates, designing a bio-digester that turns organic matter into fuel, or building a sorting and recycling unit. “This is where I think both our institutions can make a huge difference: we have the money, we have dedicated initiatives but we expect to see from clients initial proof that a project is feasible, and the CCAC can help with that— it’s a win-win situation.”
The CCAC is already helping get projects off the ground and proving that climate finance partnerships can be fruitful.