AfDB GEF ANNUAL REPORT 2016

Transcription

1 AfDB GEF ANNUAL REPORT 2016 BUILDING RESILIENCE FOR SUSTAINABLE DEVELOPMENT IN AFRICA AfDB and GEF jointly delivering global environmental benefits

2

3 AfDB GEF I Annual Report 2016 TABLE OF CONTENTS LIST OF ACRONYMS 2 FOREWORD 4 AfDB-GEF KNOWLEDGE PRODUCTS 6 ABOUT THE GLOBAL ENVIRONMENT FACILITY (GEF) 9 AfDB S PARTNERSHIP WITH THE GEF 10 PORTFOLIO OVERVIEW : THE YEAR IN REVIEW 14 NEW PROJECT APPROVALS IN AFDB-GEF PROJECT CASE STUDIES 20 - SUSTAINABLE LAND MANAGEMENT IN THE GAMBIA 20 - THE MORINGA AGROFORESTRY FUND 22 - ENHANCING CLIMATE RISK MANAGEMENT AND ADAPTATION IN BURUNDI 24 - ABIDJAN INTEGRATED SUSTAINABLE URBAN PLANNING AND MANAGEMENT 26 THE YEAR AHEAD: 2017 AND LOOKING TO GEF7 28 TOTAL AfDB-GEF PORTFOLIO AS OF 31 DECEMBER

4 2 AfDB GEF Annual Report 2016

5 LIST OF ACRONYMS AfDB AFOLU BD CBD CCA CCM CW GEF GEFTF GHG IAP ICT IW LD LDCF MDB MEA MFA NRM POP REEE SCCF SDG SEFA SFM TYS UNCCD UNFCCC African Development Bank Agriculture, Forestry and Other Land Use Biodiversity Convention on Biological Diversity Climate Change Adaptation Climate Change Mitigation Chemicals and Waste Global Environment Facility Global Environment Facility Trust Fund Greenhouse Gas Integrated Approach Pilot Information and Communications Technology International Waters Land Degradation Least Developed Countries Fund Multilateral Development Bank Multilateral Environmental Agreement Multi Focal Area Natural Resource Management Persistent Organic Pollutant Renewable Energy and Energy Efficiency Special Climate Change Fund Sustainable Development Goal Sustainable Energy Fund for Africa Sustainable Forest Management Ten Year Strategy United Nations Convention to Combat Desertification United Nations Framework Convention on Climate Change 3

6 Dr. Anthony O. NYONG Director Climate Change and Green Growth Department (PECG) The African Development Bank Group Africa faces numerous environmental challenges, including drought, soil degradation, floods, and deforestation. Furthermore, Sub-Saharan Africa is the most vulnerable region to climate change. Environmental degradation is intrinsically linked to food insecurity, water scarcity, and overall vulnerability. The loss of ecosystem services, including climate regulation, directly affects agricultural production, livelihoods and economic growth. The continent s socio-economic wellbeing depends primarily on its ability to conserve and manage its natural resources. Africa must counter environmental and climate change threats while driving low carbon, resilient growth. In response, the African Development Bank has committed to supporting inclusive and green growth by promoting development that eases pressure on natural assets while better managing social and economic risks. Priorities include building resilience to climate and other shocks, providing sustainable infrastructure, promoting investments in clean energy and the sustainable use of natural resources. Over the last year, the African Development Bank - Global Environment Facility (AfDB- GEF) Partnership has continued to support the Bank s Ten Year Strategy by catalyzing sustainability and resilience and overcoming barriers in the Bank s investments. GEF resources have been applied to projects in areas facing severe climate and resource degradation challenges. Successful projects include the Climate Adaptation for Rural Livelihoods and Agriculture Project for improved food stability in Malawi which enhanced crop productivity through irrigation where frequent droughts and floods have caused poor crop yields, benefitting more than 600,000 people. A project in The Gambia has aimed to restore and protect the productive functions of upland and lowland agro-ecosystems through sustainable land management techniques over an area of 2,800 hectares. GEF funding has also served as a driver for sustainable development by contributing to local livelihoods, growth and global environmental benefits. For example, the Sustainable Cities project in Abidjan, Côte d Ivoire and the integrated urban management for sustainable cities project in Cameroon aim to reduce GHG emissions and improve air quality through sustainable urban planning and management. In addition, the Bank is seeking to reverse land and water degradation through projects such as in Zambia s Lake Tanganyika Basin and activities in agroforestry and climate-smart agriculture. 4

7 The Bank s GEF portfolio has grown tenfold over the past five years, and includes 35 projects in 33 countries for a total of US $302 million in GEF grants, with cofinancing largely from the Bank estimated at about US $2.8 billion. This demonstrates the GEF s capacity to bring multiple sources of financing together under a common investment framework. GEF financing complements the Bank s efforts in supporting a transition to green growth that protects livelihoods and the environment, improves water, energy and food security, and spurs innovation, job creation and economic development. Much more needs to be done to increase Africa's access to climate finance, a key objective of the Bank s Climate Change Action Plan ( ). As Africa's premier Development Finance Institution, the AfDB has reaffirmed its commitment to mobilize resources to help African countries to adapt to and mitigate the impacts of climate change. The Bank has committed to triple its climate change finance to about US $5 billion per year and to provide US $12 billion in renewable energy investments by This commitment underpins the Bank s Strategy which promotes inclusive and green growth in Africa across the Bank's 5 priorities, aptly called the High 5s. The Climate Change Action Plan seeks to operationalize this Strategy and the Bank s High 5s. It provides a good entry point for the implementation of the Paris Agreement especially ensuring that climate financing is urgently delivered for African countries which are most vulnerable to climate change shocks. The ongoing GEF- 7 replenishment provides an opportunity to deepen the AfDB-GEF Partnership to contribute towards achieving the Bank s investment finance targets. We look forward to a successful implementation of GEF-7 as we continue to strengthen the AfDB-GEF Partnership in order to leverage development finance for climate-resilient and lowcarbon growth on the African Continent. Dr. Anthony Nyong 5

8 AfDB-GEF KNOWLEDGE PRODUCTS AfDB-GEF Annual Report (2015) Climate Finance Newsletter AfDB-GEF Brochure (2015) Climate Finance Brochure Success Story - Adapting Yaounde's drainage system to improve climate resilience, health and create jobs Success Story - Malawi: Communitybased adaptation Success Story - Burundi: Relevant information and community involvement key to helping Burundi adapt to climate change 25 Years of the GEF 6

9 AfDB-GEF 2016 ARTICLES AfDB-GEF partnership: financing global environmental benefits and climate change adaptation in Africa African journalists join AfDB to explore the path to a green and powered Africa AfDB with GEF helps to harness the potential of Africa s transboundary water resources African Development Bank to leverage climate finance for urban resilience in Africa Bénin: une nouvelle étape de franchie pour le programme «Énergie et Eau pour la Vie» AfDB and GEF boost renewable energy projects across Africa and urban planning in Cameroon 7

10 8 AfDB GEF Annual Report 2016

11 ABOUT THE GEF The Global Environment Facility (GEF) is a multilateral donor trust fund established in 1991 to finance actions which address critical threats to the global environment. It brings together 183 member governments in partnership with international institutions, nongovernmental organizations, and the private sector. Funding is provided mainly through grants and some concessional finance to cover the incremental or additional costs associated with transforming a project with national benefits into one with global environmental benefits. The GEF administers several funds: the GEF Trust Fund (TF), the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF). The GEF TF works through six focal areas: biodiversity, climate change, chemicals and waste, land degradation, international waters, and sustainable forest management. The LDCF and SCCF instead finance climate adaptation activities. The GEF has been designated as the financial mechanism to assist developing countries meet their obligations under various multilateral environmental agreements (MEAs). It covers five major international conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants (POPs), the United Nations Convention on Biological Diversity (CBD), the United Nations Convention to Combat Desertification (UNCCD), and the United Nations Framework Convention on Climate Change (UNFCCC). Since its creation, the GEF has provided over US $14.5 billion in grants and mobilized an excess of US $75.4 billion in additional co-financing for more than 4,000 projects in 167 countries. The GEF is a unique partnership of 18 agencies - including multilateral development banks (MDBs), United Nations agencies, national entities and international NGOs - working with countries to address challenging environmental issues. The year 2016 marked the 25th anniversary of the GEF. Over this period, the GEF has supported a range of notable achievements, including: Creation of more than 3,300 protected areas covering 860 million hectares; Conservation-friendly management of more than 352 million hectares of productive landscapes and seascapes; 790 climate change mitigation projects contributing to 2.7 billion tons of GHG emission reductions; Sustainable management of 34 transboundary river basins in 73 countries; Improved cooperation and governance of one-third of the world s large marine ecosystems; Sound management and disposal of 200,000 tons of highly toxic POPs; Climate change adaptation to reduce the vulnerability of more than 15 million people in 130 countries. 9

12 AfDB S PARTNERSHIP WITH THE GEF In order to further its development objectives, in 2007 the AfDB became one of the GEF implementing agencies. AfDB s comparative advantage for the GEF lies in its capacity as a regional development bank and major actor on the continent. GEF projects are co-financed with the partner agencies to effectively promote sustainable livelihoods and the mainstreaming of environmental issues within baseline projects. This remains critical given also the continent s economies and populations still highly dependent on natural assets. The GEF supports multi-stakeholder alliances to preserve threatened ecosystems on land and in water, build greener cities, boost food security and promote clean energy for a more prosperous, climateresilient world, leveraging additional financing for every dollar invested. With inclusive and green growth at the heart of its Ten Year Strategy (TYS ), the AfDB is working to ensure the sustainability of its investments and development achievements. In order to realize these objectives, the Bank has placed an emphasis on building resilience (in both physical infrastructure as well as communities), the sustainable management of natural resources, and creating sustainable infrastructure. AfDB operations, such as in the agriculture, transport, and water/sanitation sectors, have benefited from GEF financing, ensuring stronger environmental management in these interventions and the realization of local, national and global environmental benefits. The Bank has focused on establishing a track record of environmental projects related in particular to Climate Change (adaptation, renewable energy, energy efficiency, water and sanitation), Land Degradation (sustainable agriculture and forestry) and International Waters (transboundary water management). AfDB ranks second among GEF agencies in mobilizing LDCF resources. This underlines both the dire need for adaptation activities on the continent and demonstrates the Bank s capacity to mobilize climate adaptation resources for African countries. Since 2007 the partnership between the GEF and the AfDB has been growing rapidly, working to generate environmentally sustainable, climate smart and transformational change in Africa. The goal is to reduce the vulnerability of people and communities to climate change and to reduce negative environmental impact on the continent. The scale of the joint work being carried out by the GEF and AfDB has also matured and diversified substantially. As of end 2016, the overall portfolio of projects funded by GEF and managed by the AfDB amounts to US $302 million, leveraging more than US $2.8 billion in co-financing. The Bank has played a strong role in addressing sustainable natural resource management (NRM), climate change adaptation and mitigation in Africa: The size of the AfDB GEF portfolio has grown tenfold in the last five years. AfDB has consistently mobilized a minimum of US $5 for each US $1 GEF funding. With 50% of its GEF portfolio funded by the LDCF, AfDB ranks second leading agency for the LDCF. The portfolio has seen much more diversification in GEF6, with stronger focus on non-grant financing and multi focal area projects. Investments have been made in all GEF focal areas, including, more recently, developing innovative approaches in private sector financing. The AfDB-GEF partnership is - and will continue to be - an important alliance for tackling pressing environmental problems and reducing the vulnerability of people to the negative impacts of climate change in Africa. The GEF unit at the Bank is committed to further expand the collaboration and deliver more resources to ensure resilience, sustainability and to drive low-carbon growth. 10

13 The Bank plans to scale up investment and implementation of the TYS by focusing on five priority areas, the High 5s. Not only are the High 5s central to the TYS, they are also intrinsically linked to the Sustainable Development Goals (SDGs) and to the global commitments made on climate change at the 2015 Paris COP. Helping the continent transition to green growth will require mainstreaming sustainable development initiatives through investments in clean energy, climate smart agriculture and sustainable NRM, among others. In this regard, the GEF focal areas are well aligned with the AfDB High 5s, especially Light up and Power Africa and Feed Africa. The High Light up & power Africa Feed Africa Industrialize Africa Integrate Africa Improve the quality of life for the people of Africa As part of these efforts, AfDB has declared it will triple its climate finance to reach US $5 billion a year by 2020, or 40 percent of total approvals in all key sectors, and leverage additional private and public sector investments in mitigation and adaptation. Reaching this also means looking to increased collaboration and resource mobilization from the climate funds, including the GEF. The Bank looks to the GEF as a partner in this pursuit. A new Climate and Environmental Finance division was created in late 2016 which includes the AfDB-GEF unit and team. Climate Finance and Mainstreaming at AfDB The AfDB is committed to helping African countries access the climate finance they need to move toward climate-smart, sustainable development. This commitment underpins its strategy promoting inclusive and green growth in Africa. Almost US $7 billion for 213 projects have been committed to support climate resilient and low-carbon development in the past four years. The AfDB aims to triple its annual climate financing to reach US $5 billion a year by This represents an increase in climate spending to 40% of its total new investments by In 2016, the Board approved 60 projects with climate change mitigation and/or adaptation activities amounting to US $1,036 billion climate finance, leveraging close to US $1 billion in co-financing from other DFIs, private sector and domestic sources. The Bank works with countries through a set of nine climate finance funds and mechanisms and policy advocacy initiatives to ensure its well-targeted delivery. With its sectoral departments on Energy, Agriculture, Water and Sanitation at the helm, AfDB is mobilizing wide-ranging public and private climate resources for projects that advance climate resilience and reduce GHG emissions in a range of sectors, including the agriculture, forestry and other land use sector. The Bank is also supporting regional member countries in strengthening their capacities and enabling environments to access and mobilize climate finance from a range of sources. Bank staff screen Bank-financed projects for climate risks and build resilience into projects at the design stage using the Bank s Climate Safeguards System. The Bank has also developed its GHG Accounting Tool to contribute in transitioning Africa towards low-carbon development. Furthermore, the Bank is taking the lead in developing innovative financial instruments and climate finance tracking systems. 11

14 PORTFOLIO OVERVIEW Since its accreditation as an implementing agency in 2007, the AfDB has played a key role in assisting African countries integrate sustainability and resilience into their development. The AfDB GEF portfolio has grown tenfold over the past five years, and includes 35 projects in 33 countries for a total US $302 million in GEF grants. The AfDB has mobilized a total of US $2.8 billion in co-financing from its own resources and external partners. The AfDB implements a wide array of climate change and environmental management projects through its different operational departments. Aligned with its green growth priorities, the GEF Coordination Unit within the Climate and Environmental Finance Division is working with various divisions to mobilize GEF resources. Climate change mitigation accounts for approximately 22 percent of the total portfolio, while adaptation accounts for 47 percent of the portfolio. Projects funded by other focal areas, including international waters (IW), biodiversity, and land degradation, account for the remaining 31 percent. In terms of regional versus national projects, the division is 22 percent and 78 percent respectively. The GEF Trust Fund works through the following six focal areas: Biodiversity (BD) Climate Change Mitigation (CCM) Chemicals and Waste (CW) International Waters (IW) Land Degradation (LD) Sustainable Forest Management (SFM) The AfDB-GEF portfolio in 2016 expanded to include funding from all GEF focal areas, including, for the first time, using CW funds. To note, investments have also involved developing innovative approaches under the GEF6 Sustainable Cities Integrated Approach Pilot (IAP) and a stronger emphasis on multi focal area (MFA) projects, which have resulted in higher funding amounts from a mix of relevant focal areas. MFA projects account for 9 percent of the portfolio. Such projects are considered to have stronger potential for integration and impact, and have been strongly endorsed by the GEF Secretariat in GEF6. Efforts have also focused on the introduction of climate risk management through adaptation practices which encourage sustainable land and water management, as well as to enhance transboundary cooperation and the management of shared water resources in order to mitigate water stress and build cooperation across shared river or lake basins in Africa. n 33 countries, totals US $2.4 billion, including US $260 The AfDB-GEF Portfolio in Africa, carried out in 33 countries, totals US $2.4 billion, including US $260 The AfDB-GEF Portfolio in Africa, carried out in 37 countries, total US $2.8 billion, including US $ 3lion 12

15 AfDB GEF Annual Report 2016 AfDB-GEF Portfolio by Country The AfDB-GEF portfolio in Africa, carried out in 33 countries, totals US $2.8 billion, including US $ 302 million in GEF grants and non-grant funding. MAURITANIA NIGER MALI CHAD SENEGAL SUDAN THE GAMBIA BURKINA FASO DJIBOUTI NIGERIA GUINEA SIERRA LEONE COTE D'IVOIRE BENIN CAMEROON LIBERIA TOGO CENTRAL AFRICAN REPUBLIC SOMALIA UGANDA SAO TOME AND PRINCIPE KENYA DEM. REP OF THE CONGO BURUNDI INTERNATIONAL WATERS TANZANIA MITIGATION ANGOLA ADAPTATION ZAMBIA MALAWI MOZAMBIQUE BIODIVERSITY MADAGASCAR MULTI FOCAL AREA LAND DEGRADATION LESOTHO CHEMICALS AND WASTE 13

16 2016: THE YEAR IN REVIEW In 2016, the AfDB-GEF portfolio continued to grow as an additional three projects were approved (see table below). This included GEF grant and non-grant funding totaling US $24,349,574 million and AfDB co-financing of over US $500 million. As of end 2016, the portfolio comprised 32 full size projects (FSP) (above US $2 million) and 3 medium size projects (MSP). The projects included an urban development project for Cameroon, a regional project preparation nongrant facility for the Sustainable Energy Fund for Africa (SEFA), and a regional transboundary water management project in the Songwe River Basin between Malawi and Tanzania. These projects are now in preparation phase. GEF-AfDB 2016 New Funding Project Approvals Country Project Title Approval Date GEF Focal Area GEF funding AfDB co-financing Cameroon Integrated Sustainable Urban Development (SUDP) and Environmentally Sound Management of Municipal Solid Waste Project June 2016 CCM, CW 7,956, ,000,000 Multi-country Investing in Renewable Energy Project Preparation under the Sustainable Energy Fund for Africa (SEFA) April 2016 CCM non grant 10,000, ,000,000 Malawi, Tanzania Strengthening Transboundary Cooperation and Integrated Natural Resources Management in the Songwe River Basin October 2016 IW 6,392,694 11,000,000 During 2016, the Bank also prepared a total of five (5) projects which were endorsed by the GEF CEO and approved by the AfDB Board, meaning that project implementation and disbursement can begin. The unit is working with different task managers to proceed with grant signature and start project operations. AfDB 2016 Board Approvals of GEF Funding Country Project Title Fund GEF funding AfDB co-financing Kenya RLACC - Rural Livelihoods Adaptation to Climate Change in the Horn of Africa SCCF 2,577,778 32,000,000 Djibouti RLACC - Rural Livelihoods Adaptation to Climate Change in the Horn of Africa LDCF 5,077,778 32,000,000 Togo Strengthening Climate Resilience of Infrastructure in Coastal Areas in Togo LDCF 8,932,420 90,000,000 Rwanda Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate Change LDCF 8,824,749 45,386,000 Cote d Ivoire Cities-IAP: Abidjan Integrated Sustainable Urban Planning and Management GEFTF 7,100,000 21,300,000 14

17 The highlights for 2016 include: By end December 2016, more than 62% of projects are under implementation, 12% are under preparation and 8% are at completion stage. As of end 2016, the portfolio comprised a total of 35 projects of which 32 FSP and 3 MSP. AfDB has mobilized more non-grant financing from the NGI window than any other GEF agency. The Bank has been actively involved in the preparation of the GEF7 replenishment meetings. AfDB GEF Portfolio GEF approval (US $million) No of projects Co-financing (US $million ) AfDB GEF Portfolio Focal Areas Sector Distribution (US $million) Energy Natural resources management Water and sanitation Transport % CLIMATE CHANGE ADAPTATION 4% LAND DEGRADATION 9% MULTI FOCAL AREA 7% NON GRANT 22% CLIMATE CHANGE MITIGATION 7% INTERNATIONAL WATERS 4% BIODIVERSITY CONSERVATION Private sector Cofinancing GEF grant 15

18 NEW GEF PROJECT APPROVALS IN 2016 CAMEROON Integrated Sustainable Urban Development (SUDP) and Environmentally Sound Management of Municipal Solid Waste Project in Cameroon Funding Source: Focal Area: GEF Trust Fund Approval Date: March 2016 Purpose: Multi Focal Area (CCM, CW) To strengthen integrated and environmentally sound urban planning and management in Cameroon by improving sustainable land use and waste management systems, resulting in reduced pollution, GHGs, and upops emissions Funding: GEF Grant: US $7,956,880 AfDB Co-financing: US $115,000,000 MULTI-COUNTRY Investing in Renewable Energy Project Preparation under the Sustainable Energy Fund for Africa (SEFA) (non-grant) Funding Source: Focal Area: GEF Trust Fund CCM Approval Date: April 2016 Purpose: To invest in renewable energy project development by providing additional resources and piloting the use of reimbursable grants under the Sustainable Energy Fund for Africa (SEFA) project preparation window Funding: GEF Grant: US $10,000,000 AfDB Co-financing: US $455,000,000 REGIONAL (Malawi, Tanzania) Strengthening Transboundary Cooperation and Integrated Natural Resources Management in the Songwe River Basin Funding Source: Focal Area: GEF Trust Fund IW Approval Date: October 2016 Purpose: To enhance basin protection, livelihoods and transboundary water resources management in the Songwe River Basin (SRB) through improved cooperation and provision of ecosystem services Funding: GEF Grant: US $6,392,694 AfDB Co-financing: US $11,000,

19 17 AfDB GEF Annual Report 2016

20 AfDB 2016 BOARD APPROVALS OF GEF FUNDING REGIONAL (KENYA AND DJIBOUTI) Rural Livelihoods's Adaptation to Climate Change in the Horn of Africa (PROGRAM) Funding Source: Focal Area: LDCF Climate Change Approval Date: December 2016 Purpose: To improve the resilience to climate change of pastoral and agro-pastoral communities in targeted areas, and increase the adaptive capacity of their livelihoods. Funding: GEF Grant : US $7,655,556 AfDB Co-financing : US $64,000,000 COTE D IVOIRE Sustainable Cities-IAP: Abidjan Integrated Sustainable Urban Planning and Management Funding Source: GEF Trust Fund Focal Area: Climate Change Adaptation Approval Date: December 2016 Purpose: To enhance local capacity to assess and respond to environmental degradation through the application of integrated sustainable urban planning and management methods while encouraging the uptake of innovative lower carbon technologies to reduce GHG emissions and improve air quality in the city of Abidjan Funding: GEF Grant: US $7,100,000 AfDB Co-financing: US $21,300,

21 TOGO Strengthening Climate Resilience of Infrastructure in Coastal Areas in Togo Funding Source: LDCF Focal Area: Climate Change Adaptation Approval Date: December 2016 Purpose: Building resilience of coastal areas and related infrastructures in Togo Funding: GEF Grant: US $8,932,420 AfDB Co-financing: US $90,000,000 RWANDA Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate Change: Livelihood Diversification and Investment in Rural Infrastructures Funding Source: Focal Area: LDCF Climate Change Adaptation Approval Date: October 2016 Purpose: Increasing the adaptive capacity of vulnerable Rwandan communities to adverse effect of climate change through livelihood diversification and investment in rural infrastructure Funding: GEF Grant: US $8,824,749 AfDB Co-financing: US $45,386,

22 AfDB-GEF Project Case Studies SIP: Participatory Integrated Watershed Management Project (PIWAMP) Country: The Gambia Sector: Agriculture GEF Focal Area: Land Degradation Financing: GEF TF financing: US $4,000,000; Total co-financing: US $14,479,000 Status: Closed Agricultural productivity increased from 1 ton per hectare to 3.5 tons per hectare, on average. This increase improved food stability by helping generate a surplus from irrigated crops. Because irrigation activities increase production and incomes, community members will be better positioned to absorb potential climate-related crop losses. Challenge: The Gambia is a low-income, food-deficit country. Almost one in three Gambians are vulnerable to food insecurity. Poverty remains a rural phenomenon, with 91% of the extremely poor and 72% of the poor working in agriculture. The causes of rural poverty include: low and degrading soil fertility, low agricultural and labour productivity, poor access to productive assets, poorly functioning input and output markets, low or fluctuating market prices, poorly functioning rural institutions, inadequate basic social services, and crop yields that fluctuate as much as 40% depending on weather conditions. Gambian farmers are caught in a vicious cycle of subsistence, low use of inputs, low productivity and low income. Project objectives: The SIP project, financed by the GEF, AfDB and IFAD, aimed to address the interlinked problems of rural poverty, food insecurity, and land degradation, through the development and promotion of innovative sustainable land management technologies and community-based participatory watershed/ landscape management planning approaches, with the aim of restoring, sustaining and enhancing the productive and protective functions of The Gambia s upland and lowland ecosystem resources. It contributed to the realisation of global environmental benefits, including reducing land degradation, conserving biodiversity and improving adaptive response to climate change. 20

23 Outputs: Impact: SLM Platforms established at national level; 36 Community Action Plans for SLM formulated and prioritized; 6,250 hectares under cultivation ( ha of upland (52%) and ha of lowland areas); 3, ha halted from soil erosion through the construction of upland bunds; 72 micro-projects implemented at community level comprising lowland and upland infrastructure; Anti-hippo barriers for protection of rice fields in 8 communities constructed; 898 ha of improved vegetative cover in degraded woodlands and rangelands; 3,738 ha of improved vegetative cover and restoration of habitat diversity in 13 protected areas. These protected areas provide important habitats for rare and endangered species of global importance as well as spawning and nursery grounds for fish and birds; 68,441 direct beneficiaries of which 50.1 % female. The project improved livelihoods through the promotion of community based watershed/landscape management approaches in 72 micro projects. Agricultural productivity was enhanced through the promotion of sustainable agricultural practices, minimizing land degradation, rehabilitating degraded areas and ensuring the sustainable use of water. Additionally, lowland areas were better protected from salinity while uplands from erosion. The project also enabled the expansion of lowland rice cultivation with a low-risk profile, combined with activities in adjacent uplands and natural resources restoration which has made more area available for crop cultivation and for biodiversity conservation. have fruit trees in their homesteads. 21

24 Moringa Agroforestry Fund for Africa Countries: Burkina Faso, Cote d Ivoire, Democratic Republic of the Congo (DRC), Kenya, Mali, Mozambique, Republic of the Congo, Tanzania and Zambia Sector: Agriculture, Forestry and Other Land Use (AFOLU) GEF Focal Area: Land Degradation Financing: GEF TF non-grant: US $12,000,000; Total co-financing: US $54,000,000 Status: Under implementation Challenge: Globally, 5 to 10 million hectares of land lose their productive capacity each year, mainly due to unsustainable land use practices and their impact on soil productivity. This threatens the livelihoods of rural populations and agricultural capacity, and undermines economic growth. In Africa, land and forest degradation are driven by demographic and economic pressures, primarily unsustainable agricultural expansion, mining and the overexploitation of forest reserves. Agriculture is critical to African economies but also the main force behind environmental degradation with consequent impacts on poverty and food security. The global demand for food is expected to increase by 50-80% by This will be a major challenge for Africa, a continent facing growing populations, little new land for cropping, lacking infrastructure and markets, ageing rural workers, urban migration, depleted soils, and the most climate-induced difficulties. Africa needs to increase the productivity of its agricultural systems without degrading its resource base. Project objectives: Agroforestry - the practice of integrating trees with crops and/or livestock - has the potential to significantly increase agricultural production in a sustainable way, with positive repercussions on livelihoods and the environment. Agroforestry can regenerate soils and promote diversification. It helps raise yields, lowers the need for water and fertilizer, and diversifies incomes, while reducing costs, GHG emissions and allowing adaptation to climate change. This project aims to increase investment in agroforestry activities in select African countries through the Moringa Agroforestry Fund. Moringa is an investment vehicle which invests in profitable, scalable, and replicable agroforestry projects with high potential for commercial, environmental and social impacts. It provides growth equity to scale up successful pilot projects which drive better land management. Expected outcomes: The Fund targets investments in manageable scale projects (from 3,000-15,000 ha) which combine agricultural activities (producing staple food crops for local markets and/or niche export crops) with sustainable forestry activities (timber, industrial tree crops or fruit trees) to capture most of the value chain. The anticipated benefits to economy, society and environment are vast. 22

25 The expected outcomes are: Innovation: Over 5 agroforestry projects implemented with profitable economic models and positive benefits to local populations and the environment; Higher capital support to agroforestry projects and private sector investment catalyzed; Thousands of hectares of land regenerated with positive impact on food production, carbon storage and soil/water management; Land use improved and reduced deforestation and land degradation over time; Improved agro-ecosystem productivity, with diversified crop production, alternative income generation and higher yield capacity; Increased resilience in the face of climate variability and other shocks by generating diversified revenue streams; Local development by creating jobs, new businesses and securing skills transfer (an indicative 9000 jobs created, 100,000 empowered as outgrowers, and 700,000 people impacted); Environmental benefits by improving soil quality, mitigating GHG emissions, and ensuring overall sustainability. In GEF6, the GEF launched its US $110 million non-grant pilot program to demonstrate and validate the application of non-grant financial instruments to combat environmental degradation. The Moringa project is one of the first to feed directly into this pilot program and demonstrates innovation in its agroforestry-based business model which can be scaled up across countries and regions. This highly innovative project provides a unique opportunity to produce trackable achievements in Africa in the fields of agroforestry, emerging markets private equity, and carbon credits management systems. 23

26 Enhancing Climate Risk Management and Adaptation in Burundi Country: Burundi Sector: Agriculture, food security, water resources GEF Focal Area: Climate Change Adaptation Financing: LDCF financing: US$ 3,080,000; AfDB co-financing: US$ 15,660,000 Status: Under Implementation Challenge: The Burundian economy is driven by an agriculture sector which accounts for just over 30 percent of GDP and employs more than 90 percent of the population. Climate change is expected to greatly threaten the sector as crop productivity is slowed due to the disappearance of the traditional shortdry season. By 2050, rainfall patterns are likely to be altered such that there will essentially be two six month seasons, one rainy season lasting from November to April and a dry season covering May to October. In addition to losses in agricultural production resulting from the absence of the short rainy season and harnessing of marshes during the long dry season, as climate change progresses, a gradual decrease in the yields of corn, beans, and sweet potatoes - principal food crops in Burundi - is expected. Pastoral vegetation, the quality and quantity of fodder, the duration of the season of vegetable growth, animal productivity and water quality are also likely to be affected. Food security will likely be strongly impacted. Project objectives: Since 2010, AfDB in partnership with the GEF has worked to integrate relevant information on climate change, including variability, into national and sub-national decision-making processes for better awareness, preparedness and adaptation, through enhanced capacity of the population to adapt to climate change and reduce vulnerability. It therefore worked to address these needs through investment in relevant climate smart activities; building capacities of communities and relevant line ministries, to increase the availability of accurate weather information; and involving communities to help them better understand and cope with the different threats, and the planning necessary to adapt to climate change. 24

27 Outcomes: 15 km of rural roads lateralized 10 km of forest roads opened 110 km of forest roads maintained 1,285 km of vegetated trenches dug 6.4 million forest plants produced 1.5 million agro-forestry plans produced 4,000 ha of reforested blocks delineated 4,159 ha of state-owned farms cultivated 116 km of alignment trees planted 903 ha of private farms planted with saplings 12 ha of fodder farms developed 2,121 ha of state-owned farms maintained 880 km of firewall opened 1280 km of firewall maintained 500 households improved 9 water sources developed and harnessed 9 irrigation networks developed 3,000 fruit plants acquired Innovation: 9,849 ha of land irrigated and developed 68,067 temporary and 50 permanent jobs created The project provides a sound example of how a sustainable green growth strategy can contribute to food security by strengthening the resilience of agricultural and forestry systems. Improved climate risk management offers a low-cost opportunity for deriving greater benefit from existing land and water resources through better use of knowledge. 25

28 Sustainable Cities-IAP: Abidjan Integrated Sustainable Urban Planning and Management Country: Côte d Ivoire Sector: Urban planning, transport GEF Focal Area: Climate Change Mitigation (Sustainable Cities Integrated Approach Pilot) Financing: GEF TF financing: US $7,100,000; Total co-financing: US $21,300,000 Status: Under implementation Challenge: The world is urbanizing rapidly. By 2050, more than 2 billion additional people will be living in cities, corresponding to about two-thirds of the global population. The vast majority of this growth will be concentrated in developing countries, with nearly 90% of the increase from cities in Asia and Africa. Indeed, Africa has one of the fastest urbanization rates in the world - 4% per year according to UN Habitat - which poses critical challenges for cities. Cities are key for addressing drivers of environmental degradation, including population growth, urbanization, and a rising middle class. As engines of economic growth, cities consume over two-thirds of global energy supply and generate 70% of GHG emissions. In Abidjan, urbanization and sprawl, industrial processes, transportation, energy production, and increasing air pollution are all linked to an increase in GHG emissions and waste. A coastal and major port city, Abidjan is also vulnerable to external shocks such as storm surges, sea level rise and economic shocks. If managed poorly, sprawling urban areas will degrade land, ecosystems and infrastructure, increase air and water pollution, and increase the number of vulnerable communities. Project objectives: The Abidjan sustainable cities project aims to enhance local capacity to assess and respond to environmental degradation through the application of integrated sustainable urban planning and management methods while encouraging the uptake of lower carbon technologies to reduce GHG emissions and improve air quality in the city of Abidjan. The project aims at improving the capacity of institutions, businesses and systems to plan for and adapt to the adverse effects of climate change through integration of environmental sustainability in urban planning and management initiatives. The program offers an opportunity to realign city growth trajectories to a more sustainable, resilient, and low carbon path. 26

29 Expected outcomes: Overall, the Cities IAP is expected to spur low carbon growth as well as sound management of ecosystems in select cities worldwide in the context of urbanization. It will improve integrated urban and transport planning; improve the capacity of city officials to evaluate, plan and manage urban development; improve the capacity of authorities to monitor, assess and improve air quality; enhance innovation as well as the capacity of city leaders to develop and execute city-wide low-carbon growth plans; and promote low-carbon infrastructure for the transport and waste management sectors. The following outputs are envisaged for the Abidjan project: Impact: Detailed urban plans for the Autonomous District of Abidjan, including communes; City-wide drainage and climate adaptation strategy for the Greater Abidjan area; Business case study for the implementation of a bus rapid transport system; Urban observatory with a planning database in place and operational; Non-motorised transport plan with pilot in the Central Business District of Plateau; Capacity built for air quality monitoring and traffic management agencies; Legal, institutional and regulatory measures for improving air quality; Air quality monitoring stations, network and equipment in place and operational; Air quality and GHG action plan focused on vehicle emissions in place and operational. The GEF IAP on Sustainable Cities is providing US $1.5 billion from , initially engaging 23 cities in 11 developing countries. Abidjan is one of the target cities. The program aims to help countries and cities address two trends: the rising urban demand of goods and services, and the rising consumption of resources. In seeking synergy, through the Global Platform for Sustainable Cities, the program is also expected to create a strong network of cities that will act as global ambassadors for urban sustainability planning, promoting integrated models for urban design and implementation. In so doing, the program will contribute toward avoiding or reducing more than 100 million tonnes of CO2 in GHG emissions. 27

30 THE YEAR AHEAD: 2017 AND LOOKING TO GEF7 The GEF celebrated its 25 year anniversary in It marked the occasion with several events and a stronger positioning in strategic thinking to combat the drivers of environmental degradation. What started as a pilot program on the eve of the Rio Earth Summit in 1991 has developed today into a unique partnership that unites countries, partner agencies, and a growing network of civil society and private sector actors. Today, the GEF is the world s largest public funder of environmental projects. Over these 25 years its original US $1 billion program has led to the investment of US $14.5 billion, and the leveraging of US $75.4 billion in additional resources, for nearly 4,000 projects in 167 countries. Two years ago the GEF published GEF2020, the organization s first long term strategy. The strategy led a switch in focus of operations from addressing the underlying drivers of environmental degradation - rather than only its effects - and supporting innovative and scalable activities that cost-effectively deliver the highest impacts. GEF2020 recognizes the importance of tackling complex interdependent issues in an integrated manner. The collaboration between the AfDB and GEF will further expand and deliver more resources to ensure a sustainable and resilient future for the African continent is the last year of the GEF6 programming cycle with most country allocations already committed and thus less funding available. Given this, the Bank will concentrate its efforts on the GEF7 replenishment process officially starting in March However, a total of 5 projects (2 under the GEFTF and 3 under the LDCF) have been technically cleared and are expected to be approved in Furthermore, one other LDCF projects (Uganda) will be submitted this year. 28

31 Work Program for 2017 Country Project title Fund GEF Grant US$ Co-Financing Window Benin Mali São Tomé and Principe Lesotho Malawi Uganda Sustainable Forest Management and Conservation Project GEFTF 2,627,226 15,930,000 Scaling up a Multiple Benefits Approach to Enhance Resilience in Agro- and Forest Landscapes GEFTF 8,605,023 60,208,841 Strengthening Resilience and Adaptive Capacity to Climate Change Agricultural and Fisheries Sectors LDCF 3,502,968 17,021,480 Climate Change Adaptation for Sustainable Rural Water Supply in Lowlands LDCF 4,416,210 17,250,000 Climate Adaptation for Sustainable Water Supply LDCF 2,643,500 39,500,000 Strengthening Adaptive Capacity and resilience through integrated watershed management under the Agricultural Value Chain Development Program LDCF 9,030, ,000,000 29

32 THE GEF7 REPLENISHMENT Environmental threats are growing on a global scale. Although the GEF has had a big impact in addressing these threats, it recognizes the need for a more comprehensive vision. GEF6 and the GEF 2020 Strategy put a strong emphasis on tackling the drivers of environmental degradation, critical to slowing down and eventually reversing negative trends. Pilot investments in programs addressing global commodities, sustainable cities and food security in Africa were developed to test the delivery of more integrated approaches to address major environmental challenges. The 2020 Strategy positions the GEF as a champion of the global environment. This positioning will be ever stronger in GEF7, with an emphasis on safeguarding the global commons. There has been a strategic increase in multi focal area projects and programmatic approaches, which are designed to achieve multiple benefits while applying an integrated approach to address drivers of environmental change. The Fifth Overall Performance Study of the GEF, an evaluation of the GEF5 cycle, concluded that the GEF was achieving its objectives and has played a catalytic role in supporting countries in meeting their obligations under the multilateral environmental agreements (MEAs) and in tackling global environmental issues. The Study of GEF6 is underway and is meant to provide solid evaluative evidence to inform negotiations for GEF7, particularly important for donor decisions. The GEF7 cycle of funding will begin in mid2018- and the GEF is currently initiating discussions on the seventh replenishment of resources to the GEF Trust Fund with donors, agencies, countries, and other partners. The replenishment meetings provide an opportunity for contributing participants to review GEF performance and evaluate progress, assess future funding needs, and agree on a financing framework. These will be officially launched in March 2017 with a meeting in Paris. In the context of the GEF7 replenishment discussions, the AfDB will seek to play a key role given its comparative advantage as the MDB for the African continent. The GEF focal areas are well-aligned with the AfDB High 5 priorities, and the GEF7 cycle offers a unique opportunity for AfDB to mobilize additional resources to contribute to Africa s sustainable development. MDBs are the GEF implementing agencies with most potential to scale up and crowd in additional investments and co-financing. Under the aegis of AfDB s newly formed Climate and Environmental Finance division, within which the GEF Coordination Unit now sits, an effort is being made to move concretely forward on discussions and proposals for GEF7 with the GEF Secretariat. The GEF unit is in the process of identifying opportunities for large co-financing by the GEF under the 7th cycle, particularly linked to the Light up and Power Africa and Feed Africa High 5s. 30

33 AfDB has a large portfolio of projects that by design have an impact on and are impacted by environmental factors. Given the stronger focus placed on clean energy and climate resilience to achieve inclusive and green growth on the continent, the new programs must be integrated at the core with sustainability and environmental management considerations. African countries have made the smallest contribution to global GHG emissions but are currently being disproportionately impacted by the negative impacts of climate change. It is therefore imperative for the GEF to prioritize interventions for the benefit of the continent both in terms of mitigation and adaptation. A Draft GEF7- Programming Directions Framework has been prepared to initiate discussions on possible programming priorities for the GEF7 cycle that run from July of 2018 until June of The GEF CEO has emphasized the need for the GEF to transform itself in a way that enables it to better tackle the drivers of environmental degradation head on, and set in motion the process required to transform key economic systems which threaten the global commons. The logic and proposed framework of the Draft Programming Directions, therefore, have taken into account GEF s need to reform investments from being solely focal area oriented and towards generating higher impact through more integrated Impact Programs (IPs). To ensure that GEF will have a catalytic and transformational impact in many sectors, the GEF Secretariat is proposing a number of impact programs with the aim to transform or flip key economic systems. These IPs and the overall framework will need to be discussed, finalized and approved by donors during the replenishment talks. The programming directions under GEF7 could therefore represent a change in the GEF business model from focal area allocations to more integrated programs capable of addressing multiple benefits across Conventions which the GEF serves. The Secretariat expects that this new GEF7 business model will allow for increased impact, more Global Environmental Benefits (GEBs) per unit of investment, more integrated approaches implemented, and multiple benefits resulting from each IP. The GEF is beginning negotiations around priority intervention areas for GEF7. AfDB will play on active role in the discussions and, in line with its TYS/High 5 targets, is assessing opportunities to mobilize new and enhanced funding. Through GEF7, AfDB could mobilize additional resources to achieve the High 5 priorities and SDGs in Africa. The Bank is strategically positioned to promote sustainable energy and agriculture investments in Africa, through the New Deal on Energy and through the Feed Africa strategy, underlined by a push for climate resilient investments. AfDB will put forth timely and strong program ideas for enhanced cooperation with GEF on renewable energy and energy efficiency (RE/EE) and sustainable, climate smart agriculture, among others will see continued engagement with the GEF SEC on the Bank s involvement and proposals to submit for consideration. AfDB aims to target a funding mobilization of US $ million under GEF7 and be involved in a number of impacts programs. 31

34 TOTAL AfDB-GEF PORTFOLIO AS OF 31 DECEMBER 2016 Country Project Title Fund GEF Focal Area GEF Grant (US $) Co-Financing (US $) Malawi The Gambia Burundi Cote d'ivoire Sao Tome and Principe Lake Chad Climate Adaptation for Rural Livelihoods and Agriculture (CARLA) LDCF CCA 3,000,000 24,505,000 SIP: Participatory Integrated Watershed Management Project (PIWAMP) GEFTF LD 4,400,000 14,482,000 Enhancing Climate Risk Management and Adaptation in Burundi (ECRAMB) LDCF CCA 3,080,000 15,660,000 TT-Pilot (GEF-4): Construction of 1000 Ton per day Municipal Solid Wastes Composting Unit in Akouedo GEFTF CCM 2,625,000 36,898,500 Strengthening the Adaptive Capacity of Most Vulnerable Livestock-keeping Households LDCF CCA 1,985,000 7,650,000 LCB-NREE: Lake Chad Basin Regional Program for MFA: IW, the Conservation and Sustainable Use of Natural BD, CCM, Resources and Energy Efficiency (Program) GEFTF LD, SFM 20,313, ,563,158 Regional Pilot African Climate Technology Finance Center SCCF, and Network GEFTF CCA,CCM 14,340,000 95,000,000 Regional AfDB-PPP Public-Private Partnership Program GEFTF CCM 20,000, ,000,000 Mauritania Uganda Sierra Leone HoA - Kenya HoA - Djibouti Angola Benin Madagascar Cameroon Togo Improving Climate Resilience of Water Sector Investments with Appropriate Climate Adaptive Activities for Pastoral and Forestry Resources LDCF CCA 6,350,000 14,580,000 Building Resilience to Climate Change in the Water and Sanitation Sector LDCF CCA 8,370,000 38,000,000 Building Resilience to Climate Change in the Water and Sanitation Sector LDCF CCA 4,000,000 28,735,000 RLACC - Rural Livelihoods's Adaptation to Climate Change in the Horn of Africa (Program) SCCF CCA 2,577,778 32,000,000 RLACC - Rural Livelihoods's Adaptation to Climate Change in the Horn of Africa (Program) LDCF CCA 5,077,778 32,000,000 Integrating Climate Change into Environment and Sustainable Land Management Practices (ICE-SLM) LDCF CCA 4,416,210 19,995,000 Flood Control and Climate Resilience of Agriculture Infrastructures in Oueme Valley LDCF CCA 7,200,000 44,000,000 Enabling Climate Resilience in the Agriculture Sector in the Southwest Region of Madagascar LDCF CCA 6,272,000 33,000,000 Enhancing the Resilience of Poor Communities to Urban Flooding in Yaounde SCCF CCA 4,032, ,000,000 Strengthening Climate Resilience of Infrastructure in Coastal Areas in Togo LDCF CCA 8,932,420 90,000,000

35 Country Project Title Fund Senegal Project for the Restoration and Strengthening the Resilience of the Lake de Guiers Wetland Ecosystems GEFTF BD 1,315,525 22,090,000 Zambia Climate Resilient Livestock Management Project LDCF CCA 6,210,000 20,832,000 Rwanda Central African Republic Multinational Sudan, Somalia Uganda, RDC Increasing the Capacity of Vulnerable Rwandan Communities to Adapt to Adverse Effects of Climate Change: Livelihood Diversification and Investment in Rural Infrastructures LDCF CCA 8,824,749 45,386,000 Reducing Rural and Urban Vulnerability to Climate Change by the Provision of Water Supply LDCF CCA 7,140,000 23,300,000 Integrated Development for Increased Rural Climate MFA: IW, Resilience in the Niger Basin GEFTF CCM, LD, 12,014,800 61,000,000 SFM RLACC - Rural Livelihood's Adaptation to Climate Change in the Horn of Africa Phase II (Program) LDCF CCA 17,067,592 52,000,000 Lakes Edward and Albert Integrated Fisheries and Water Resources Management Project GEFTF IW 8,100,000 26,885,000 Benin Improving Mobility in Parakou GEFTF CCM 1,826, ,191,700 Zambia Chad Cote d'ivoire Cameroon Lake Tanganyika Basin Sustainable Development MFA: BD, LD, Project GEFTF CCM,SFM 7,000,000 26,562,630 Building Resilience for Food Security and Nutrition in MFA: BD, LD, Chad s Rural Communities GEFTF SFM 5,329,452 23,079,452 Sustainable Cities-IAP: Abidjan Integrated Sustainable Urban Planning and Management GEFTF CCM 7,100,000 21,300,000 Promoting Access to Renewable Energy to Power Community Centers and Development of IT Tools for Adaptation Purposes in Rural Communities GEFTF CCM 1,726,484 35,000,000 Multinational Moringa Agroforestry Fund for Africa (non-grant) GEFTF LD 12,000,000 54,000,000 Liberia Cameroon Multinational Malawi/Tanzania GEF Focal Area GEF Grant (US $) Co-Financing (US $) Increasing Energy Access through the Promotion of Energy Efficient Appliances in Liberia GEFTF CCM 2,639,726 37,000,000 Integrated Sustainable Urban Development (SUDP) and Environmentally Sound Management of Municipal Solid Waste Project GEFTF MFA: CCM, CW 7,956, ,000,000 Investing in Renewable Energy Project Preparation under the Sustainable Energy Fund for Africa (non-grant) GEFTF CCM 10,000, ,000,000 Strengthening Transboundary Cooperation and Integrated Natural Resources Management in the Songwe River Basin GEFTF IW 6,392,694 11,000,000

36 ANNUAL REPORT African Development Bank Immeuble du Centre de Commerce International d Abidjan CCIA Avenue Jean-Paul II 01 BP 1387 Abidjan 01, Côte d Ivoire GEF coordination at AfDB: The AfDB-GEF coordination team is housed in the Climate Change and Green Growth Department (PECG) Contacts: AfDB-GEF Coordination Unit Climate Finance Division gef_afdb@afdb.org GEF Coordinator: Mahamat Assouyouti, m.assouyouti@afdb.org 2016