The European Investment Bank is struggling to boost the share of its climate lending spent on helping countries adapt to the effects of climate change.
In late 2021, EIB committed to roughly triple the share of its climate finance for adaptation projects to 15% by 2025. Adaptation refers to projects addressing the effects of climate change, whereas mitigation covers those aimed at reducing greenhouse gas emissions. Development experts and climate-vulnerable countries have long called for more international funding for adaptation projects, though these are often perceived as less profitable.
The world’s major multilateral development banks now have a joint methodology to track climate adaptation finance, and Cinzia Losenno, a senior climate change specialist at EIB, recently outlined some of EIB’s adaptation projects. These include rehabilitating rainwater drainage systems and related road projects in Benin, improving port infrastructure in the Gambia, and investing in cold-chain solutions in Kenya to help preserve food and pharmaceutical products.