The EBRD, in partnership with the Climate Investment Funds’ Pilot Program for Climate Resilience (PPCR), has launched a new financing mechanism to counter the effect of the climate change – CLIMADAPT.
This new facility will combine commercial and concessional funding to scale up financing through local banks and microfinance institutions. The focus will be on projects resulting in climate resilience and on providing advice to clients regarding best technological solutions.
The first country to benefit from this innovative approach is Tajikistan, one of the EBRD countries of operation, which is highly vulnerable to the impact of climate change. The country heavily depends on rainfall and snowmelt from its mountains for water and electricity production by its hydropower assets. Projected changes in precipitation and snowmelt could have a significant impact on the energy supply. Furthermore, the changes could lead to increased soil erosion, thereby degrading land that is vital for the country’s agriculture.
CLIMADAPT aims to help Tajik households, businesses and farmers cope with the effects of climate change and to support the country’s transition towards a green economy.
CLIMADAPT was officially launched in Dushanbe on February 3, 2016. Representatives of the PPCR, EBRD and UK Department for International Development (DFID) explained how the facility will support Tajikistan’s wider plans to strengthen climate resilience.
CLIMADAPT will provide up to $10 million of financing to micro, small and medium businesses, as well as households through local participating financial institutionsv(PFIs). The funding is provided by the EBRD and the Pilot Program for Climate Resilience (PPCR) of the Climate Investment Funds.
Advisory package will accompany the financing to support the adoption of technologies and practices that reduce soil erosion, pressure on water and energy resources, all of which are top priorities for building climate change resilience in Tajikistan. Funding for advisory package is provided by the UK Department for International Development (DFID).
During the launch event, the guests were shown the real-life examples on how climate resilience technologies can help address challenges brought by climate change. Drip irrigation and more efficient insulation of buildings were among the presented examples.
The EBRD has invested €564 million in 97 projects in Tajikistan since it began operations in 1992.
Ahead of the COP21 climate talks in Paris last year, and in response to calls from the international community, the EBRD adopted a climate strategy according to which 40 per cent of its annual investments shall be dedicated to climate finance by the year 2020.