African Development Bank

Level of climate finance transparency

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.

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Paris alignmentReasoning
Some progressTransparency of financial intermediary lending needs improving.
Climate finance dataProvides adequate data to the OECD
Financial intermediary lendingFinancial intermediaries and size of loans are detailed but further information is limited.

Explanation

Transparency of climate finance data

The AfDB does not release the underlying data behind its submission to the joint MDB report. The AfDB provides an adequate level of information in its submission to the OECD-DAC (Development Assistance Committee) climate-related development finance database. 

Recommendation: AfDB should release the underlying data to its submission to the joint MDB report on climate finance in an excel readable format.

Transparency of financial intermediary lending

The African Development Bank data portal details every project financed by the African Development Bank; this includes loans to financial intermediaries. The name of the intermediary and the size of loan is available. However, details of the sub-projects and their sectors are not available.  Guidance by the bank states that ‘subprojects must meet eligibility and development criteria agreed with the Bank. The Bank will also agree appropriate arrangements to monitor subproject compliance with these criteria’. It also states that ‘during implementation, the Bank, the borrower and the FIs in each tier must use the agreed performance indicators, implementation progress reports, and a review of a sample of subprojects to monitor the progress of financial intermediary loans. Furthermore, in high risk subprojects involving financial intermediaries, the financial intermediary must notify the responsible sector department in the Bank.

Recommendation: We recommend that all MDBs consider disclosing their operations against a version of the EU Sustainable Finance Taxonomy that has been adapted for the region the bank operates in. This is because it is science based and is reviewed regularly to reflect changes in technology and science. 

Last Update: November 2020

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