Greenhouse gas accounting at project and portfolio level

Explanation

In December 2015, AfDB launched an in-house tool to track greenhouse gas (GHG) emissions as part of their Integrated Safeguard System (ISS) and in accordance with the provisions of the UNFCCC.  The Bank reports on ex-ante GHG emissions produced by the Bank’s investments on a project-by-project basis and reports on GHG emissions (gross and net) in project appraisal reports (PARs). In reporting on GHG emissions the Bank is guided by two principles: 

• Full disclosure of information in line with its Disclosure and Access to Information policy 
• Graduated reporting: the Bank will initially report on emissions for all Category 1 operations i.e. projects which are likely to induce significant and/or irreversible adverse environmental and/or social impacts, or to significantly affect environmental or social components that the Bank or the borrowing country considers sensitive and uses the findings of the GHG tracking tool pilot to gradually refine and expand its reporting on GHG emissions. 

According to the 2017 report to the Climate Investment Funds Board, AfDB subscribes to the notion of a harmonised approach with other International Financial Institutions (IFIs) to foster good practice and transparency. Since the tools inception, AfDB covers the following sectors: energy, land use and agriculture, water and sanitation, and transport*. AfDB does not currently appear to aggregate or disclose emissions over its portfolio**. 

Recommendation: Explicitly provide information on the GHG accounting reporting at project level for the sectors covered by the GHG emission accounting tool 

Recommendation: Disclose further evidence on how AfDB has implemented the tool.  

*Information received from the AfDB 

**A target to reduce gross portfolio emissions may not be suitable for the AfDB considering Africa’s emissions are the lowest of all regions, in which case a target for aggregate net emissions from projects may be more suitable.