An independent evaluation report, undertaken by the Asian Development Bank (ADB) on climate change from 2011 to 2020, reveals that Pakistan received the lowest climate financing of just 5 per cent in the last decade, while India secured 20 per cent.

However, Maldives clinched the top position by securing 39 per cent of the total funds available for climate financing.

The report, undertaken on the basis of 10 country case studies, said Maldives registered the highest share of climate finance to total lending (39pc). “At the other end of the scale, Pakistan received the lowest share (5pc). In terms of the number of projects, the share of climate-tagged projects to total projects was highest in India, which almost reached the 75pc target, followed by the People’s Republic of China (PRC) (65pc) and Bangladesh (64pc). Overall, 55pc of the total projects in the 10 countries were climate-tagged.”

ADB’s climate finance totalled $40.2 billion over the evaluation period and increased steadily by volume and number of projects. Overall, the $40.2 billion of climate finance represented 12pc of the $348.8 billion in total ADB lending during 2011–2020. Support for sovereign operations dominated at 79pc, with non-sovereign operations comprising 21pc of the portfolio.

Annual climate finance grew from $2.7 billion in 2011 to $7.0 billion in 2019, but slipped to $5.3 billion in 2020 due to COVID-19. The number of projects with climate finance elements increased by almost 60pc from 58pc projects in 2011 to 92 in 2020.

A total of 18 climate-tagged projects were also considered to have responded to the COVID-19 pandemic, mostly as adaptation finance (67pc). Geographically, much of the support went to South Asia ($15.7 billion, 39pc) while the Pacific received the least ($942 million, 2pc). At the country level, India and the PRC accounted for 42pc of the total lending, India with the largest ($9.7 billion, 24pc) followed by the PRC ($7.4 billion, 18pc). Mitigation dominates financing and these projects mainly take place in the energy and transport sectors. For 2011–2020, total mitigation finance amounted to $31.5 billion, or 78pc of the total climate finance. Mitigation finance is dominated by the energy sector (60pc), although there has been a recent significant upward trend in the transport sector.

The evaluation of performance included an assessment of 61 closed projects and a structured review of a larger sample of 250 new and older projects. Of the 36 closed and validated projects with climate financing, 81pc were successful in achieving the project’s objectives.

The structured review of a larger sample of 250 new and older projects (37pc of the climate portfolio) facilitated the assessment of the relevance of climate change objectives and project design. Fewer than 15pc of projects contained transformational design elements; most were incremental in their ambitions. The added value of ADB climate projects was highest for their scaling up potential and use of applied knowledge, and lowest for their use of high-level technology or innovation. The percentage of projects with climate risk assessments increased from 38pc in the old cohort (approved in 2011–2015) to 70pc in the new cohort (approved in 2019–2020). About half of the mitigation projects had indicators at the outcome level. In adaptation projects, indicators at the outcome level dropped from 43pc in the old cohort to 28pc in the new, while output indicators increased from 52pc to 59pc.

The Pakistan Country Partnership Strategy (CPS) final review validation found that the CPS, 2015–2019 was committed to clean energy, disaster risk management, and mainstreaming of environmental and climate change considerations but it also noted that achievements had been mixed. The government had requested assistance from ADB to implement its national climate change policy and particularly to develop climate change mitigation and adaptation strategies to reduce GHG emissions. However, the impact of renewables on the energy mix was still quite small and was hampered by the absence of a clear government policy on solar and wind power. Adaptation measures related to flood and disaster risk management had mixed progress.

In contrast, the ADB has not yet met the $2 billion annual adaptation finance target. Total adaptation finance during the period amounted to $8.7 billion, 22pc of the total climate portfolio

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