71 Together, adaptation and climate resilience make up Pillar 1 of CCAP2. From the CCAP2, the Bank’s approach towards implementing and fulfilling Pillar 1 on adaptation and climate resilience includes economic diversification and sectoral planning, for example, related to agriculture, water, health, and infrastructure. Benefits to people and quality of life and livelihoods are also recognized. To the extent possible, data related to these themes has been collected and compiled, with the aim of making an evidence-based evaluation of climate change and development performance. Adaptation and resilience across Africa Based on data from the Human Development Index, Readiness Index, and Vulnerability Index from Notre Dame University through the Climate Watch website, readiness levels have decreased over time, even while human development levels have increased. Readiness generally increases with level of human development, while vulnerability levels generally decrease with human development. However, it is found that levels of vulnerability have stayed the same. Economic diversification levels have the co-benefit of enhancing economic resilience but, currently, levels of economic diversification appear to be missing targets. In addition to economic diversification, trade can create resilience; for example, if local harvests fail, food can be imported from elsewhere. Likewise, ease of trade helps enable supply chains to adapt in case of climatic or other disruptions. Unfortunately, the cost of trading across borders is not meeting cost reduction targets. Vulnerable sectors Many African countries address adaptation in their NDCs, reflecting concerns around climate change impacts and risks, and the need to sustain and progress development. The Bank’s NDC Hub has prepared the Analysis of Adaptation Components of Africa’s NDCs. This includes vulnerable sectors identified in NDCs. When faced with the need to act on climate change, it may be tempting to try and identify priority sectors for intervention. However, adaptation efforts need to address a range of sectors. So, while water and agriculture appear in many RMC NDCs, so do forestry, energy, coastal protection, biodiversity and ecosystems, and other sectors. Adaptation support must be tailored to the needs of RMCs. Given the range of sectors that may need to be addressed when supporting adaptation within a country, or across countries, it is important to have processes for identifying needs as well as reliable information on which to Green growth in Africa — current initiatives and future developments Pillar 3 Mobilizing financial resources to finance climate action and the CCAP2 Under the CCAP2, the Bank has committed to allocate 40% of approvals per year as climate finance by 2020. In addition, the Bank will mobilize climate finance from external sources. The Bank will also scale up adaptation finance from 29% in 2015 to reach parity with mitigation finance; and will prioritize mobilization of adaptation finance from climate funds. In line with the High 5s goal to provide universal energy access to the continent’s people, the highest investment scale-up will be in clean energy technologies. The majority of Bank-sourced climate finance comes from the African Development Bank (ADB) and African Development Fund (ADF) financing windows, external climate funds for which the Bank is an implementing entity, and from internal trust funds hosted at the Bank. In light of its ambitious target, the Bank will scale up climate finance from current sources. However, past experience and current trends indicate that the anticipated level of scale-up will require going beyond traditional funding mechanisms to embrace innovative means of mobilizing finance. As private financial flows have risen from 63% of total external resources in 2002–2006 to over 70% in 2010–2014 given attractive regional growth, the Bank will invest its resources strategically to attract and leverage increasing private sector investment. Source: CCAP2
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