Joint MDB Report on Adaptation Finance 2011
The international community recognizes the need to join forces to avert dangerous climate change. This requires mobilizing financial resources from a wide range of sources, public and private, bilateral and multilateral, including alternative sources. This makes it increasingly necessary to track and report financial flows that support climate change mitigation and adaptation, to build trust and accountability with regard to climate finance commitments and monitor trends and progress in climate related investment. Yet there is currently no precise internationally definition of climate finance and current efforts to track climate finance lack transparency, comparability and comprehensiveness. This report sets out the joint MDB approach for adaptation finance reporting, developed by a group of MDBs to work towards better tracking of climate finance. It responds to the particular context of the activities that the MDBs carry out in developing and emerging economies and is built on the premise that climate adaptation and sustainable development are closely aligned. A separate report on mitigation finance is being published in parallel to this report. This harmonized methodology has emerged from a process to find commonalities between existing MDB approaches to adaptation finance, each reflecting a different set of sectoral, geographic and investment mandates. The joint approach is also a work in progress aimed at assisting the MDBs, as well as other organizations that might want to follow a similar approach, in gradually converging towards a harmonized approach for the tracking of climate change finance.