This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs
|Paris aligned||Substantial evidence of project based and systemic adaptation and climate risk assessments|
|Project-level climate risk management procedures||Scope of coverage of project-level climate risk management||Enhancing client climate resilience||Adaptation |
|AfDB has a specific strategy in place, involving both risk screening and risk-proofing||AfDB screens all projects for climate risks; a subset of these are examined for climate-proofing options||There are clear efforts made to move clients towards climate resilience and beyond climate proofing||AfDB exceeded target|
AfDB is the only MDB to have a target to reach parity of adaptation and mitigation finance flows by 2020. In fact, the Bank exceeded its target of achieving parity between adaptation and mitigation finance by allocating 55% of its climate finance resources to adaptation and 45% to mitigation.
AfDB has also developed an innovative mechanism known as the Adaptation Benefit Mechanism (ABM) with the aim to support adaptation through a transparent and efficient results-based mechanism. The mechanism is currently being piloted so it is too early to identify the results at this stage. The pilot ends in 2023, and will include several project demonstrations, and will enable the Bank to deliver an operational framework for the ABM throughout the continent.
In the past, the African Development Bank has shown commitment to help the continent cope with climate change. In 2009, the Bank developed its Strategy of Climate Risk Management and Adaptation.
The strategy aims to increase support for capacity building of African countries to tackle climate change risks. It also ensures that all investments financed by the Bank are “climate-proof”, meaning that they are designed, installed, implemented and managed to reduce to a minimal level the adverse effects of climate change, with the most cost-effective ratio as possible.
The plan’s purpose is to reduce the continent’s vulnerability to climate change and sustain the change to economies producing less greenhouse gas (GHG). The plan banks on AfDB resources but also on the contribution of its partners, multilateral and bilateral institutions, and the private sector.
The African Development Bank and African Risk Capacity (ARC) Agency are aiming to enhance risk management infrastructure and policy across Africa while supporting countries in building resilience against climate shocks.
The Africa Disaster Risk Financing (ADRiFi) programme is their collaborative solution that strives towards a climate-resilient Africa by building upon the strengths and country relationships of both institutions. ADRiFi is a comprehensive and sustainable solution for risk transfer within the broader context of disaster risk management. ADRiFi will run from 2019-2023, and the programme aims to enhance the resilience and response to climate shocks in African countries.
ADRiFi will support countries in improving the management of natural disaster risk by:
- Strengthening the capacity of countries to evaluate climate-related risks and costs and elaborating mitigation measures at national and sub-national levels
- Providing funding for a rapid response, including disbursement of emergency funds, to address climate disasters at national and local levels.