The European Bank for Reconstruction and Development (EBRD), in partnership with the Pilot Program for Climate Resilience (PPCR) of the Climate Investment Funds, has held an event to mark the formal launch of CLIMADAPT, the Tajikistan Climate Resilience Financing Facility, on 3 February 2016 at the Hotel Serena in Dushanbe.
CLIMADAPT aims to help Tajik households, businesses and farmers cope with the effects of climate change and to support the country’s transition towards a green economy.
Tajikistan is among the most climate-vulnerable countries in the EBRD’s region of operations. The country depends heavily on rainfall and snowmelt from its mountains, both for water and – through its vast hydropower assets – for electricity. Projected changes in precipitation and snowmelt runoff could have a significant impact on these two key resources. Furthermore, the changes could lead to increased soil erosion, thereby degrading land that is vital for the country’s agriculture.
CLIMADAPT will provide up to US$ 10 million of financing to MSMEs and households through local partner financial institutions. The funding is provided by the EBRD and the Pilot Program for Climate Resilience (PPCR) of the Climate Investment Funds. Three local partners – Bank Eskhata, Humo MFI and IMON International – have already signed agreements to participate in the CLIMADAPT facility.
Technical advice will also be given to support the adoption of technologies and practices that reduce soil erosion and pressure on water and energy resources, all of which are top priorities for building climate resilience in Tajikistan. Funding for these technical cooperation activities is contributed by the UK Department for International Development (DFID).
The key topics discussed on 3 February in Dushanbe included the challenges of climate change facing Tajikistan and how CLIMADAPT can make climate-resilience technology affordable and accessible to the Tajik private sector.
Representatives of the PPCR, EBRD and DFID explained how the facility will support Tajikistan’s wider plans to build climate resilience.
The representatives of the three participating financial institutions – Bank Eskhata, IMON International and HUMO – presented their views on how they will support their clients and disburse CLIMADAPT loans. The technical advisers outlined their technology-driven approach to implementation.
The launch ended with a presentation of real-life examples showing how climate resilience technology can help address challenges brought on by climate change. Drip irrigation and more efficient insulation of buildings were among the examples cited.
Since it began operations in Tajikistan in 1992, the EBRD has invested €564 million in the country through 97 projects.
Ahead of the COP21 climate talks in Paris last year, and in response to calls from the international community to multilateral development banks, the EBRD unveiled a climate strategy that will see 40 per cent of its annual investments dedicated to climate finance by the year 2020. In order to achieve this goal, the EBRD will increase its existing activities to meet demand and will further develop areas such as adaptation financing and the transfer of innovative climate technology to the countries where the Bank works.