Climate

Development in poorer countries is being hindered by the ongoing climate change. A whole range of coordinated measures is required to counter the changes to our climate. Thus, emissions of greenhouse gases like carbon dioxide or methane, which are primarily produced in agriculture, must be avoided where possible to protect the environment.

However, it must also be clarified whether droughts, melting glaciers or other impacts of climate change could pose a threat to the given development project itself or its effectiveness, and which counter measures can be taken. Last but not least, initiatives that support people in coping with the consequences of climate change must be carried through, such as promoting effective irrigation methods in agriculture to survive periods of drought. A proactive approach is required to protect the environment and natural resources.

Respecting the agreements reached by the international community at the global climate summit in Rio de Janeiro in 1992, KfW Development Bank therefore links many development projects with programmes designed to protect the climate and the environment as well as facilitate adaptation to climate change.

The increase in the average global temperature is causing the rise of sea levels, which in itself poses a threat to 60 million people living in the vicinity of river deltas. Hurricanes and incidents of desertification and devastation are growing in number, too. Melting glaciers could have catastrophic effects on the water supply of people in Asia and Latin America.

The main reason for the climate change is the high concentration of greenhouse gases (GHG) in the atmosphere, first and foremost carbon dioxide. The main perpetrators in the past were the industrialised nations, which made intensive use of fossil fuels and contributed the most to the enrichment of carbon dioxide. This now makes them responsible for supporting emerging and developing countries with their legitimate efforts related to energy, growth and prosperity. Their experience is needed to create a sustainable economy, without which it is impossible to prevent further progress in global warming.

In recent years KfW Development Bank has invested more than half of its new commitments in environmental and climate-related projects, the majority in the field of energy. This helps to create new and effective technologies in the partner countries such as solar and hydropower plants as well as geothermal and biogas plants.

Project Examples

REDD Early Movers Program (Latin America)  (PDF, 205 KB, non-accessible)

Global Climate Partnership Fund (GCPF)  (PDF, 165 KB, non-accessible)

Get Fit (Uganda)  (PDF, 221 KB, non-accessible)

The anthropogenic climate change can no longer be denied: the average global temperature clearly rose in the 20th century. This has led to rising sea levels, melting glaciers and an increase in extreme weather conditions. The rapid rise in emitted greenhouse gases is part of the problem. Climate protection was initially the focal point for politicians, especially by means of promoting renewable energies and energy efficiency. Gradually though, the realisation is setting in that simply combating the causes is not enough. We also have to deal with the consequences of climate change, and so measures were developed that help adapt to the changed conditions.

It is mostly people in developing countries that are affected by the consequences of climate change. This is partly due to their geographic position and to their weaker financial capabilities for adapting to the changed circumstances. What is more, the lives of many people there depend heavily on the climate-sensitive sector of agriculture, where incomes are falling if not being completely wiped out.

This is why KfW Development Bank is active in developing countries, too, on behalf of the German government to limit the negative impacts on water supply, food production, health care, infrastructures and entire eco-systems.

Project Exam

Glacier Monitoring (Pakistan)  (PDF, 145 KB, non-accessible)

Flood Protection in Beira (Mozambique)  (PDF, 157 KB, non-accessible)

Hydrological Monitoring Network (Jordan)  (PDF, 196 KB, non-accessible)

Irrigation Program (Bolivia)  (PDF, 157 KB, non-accessible)

KfW uses proven instruments of international development cooperation (DC) for climate financing: climate-related projects in developing and emerging countries are funded over long periods with a mix of grants, participations and low-interest loans. In addition, and specifically for environmental and climate protection, there is also a variety of special programmes and funds available that offer greater financial leeway and support particularly innovative or broad approaches to reach small and medium-sized businesses as well as private households. These include, for example, the special funding products of the Federal Ministry for Economic Cooperation and Development (BMZ) for environmental and climate financing, which also promote specific technological approaches, the International Climate Initiative (ICI) of the Federal Ministry for the Environment (BMU) or the NAMA (Nationally Appropriate Mitigation Actions), and projects launched by developing countries themselves aimed particularly at climate protection.

Forest resources contribute directly to the livelihoods of 1.6 billion people worldwide. Forests are also a source of animal and plant life: they harbour 80% of the world’s biodiversity. Many of the resources that forest ecosystems provide, such as food, water, clean air and erosion control, are essential for humans.

Standing forests are amongst the largest repositories of carbon. If these forests are degraded or cut down entirely, greenhouse gases are emitted. Given global forest loss, deforestation is among the largest factors for global warming, accounting for 11% of the world’s emissions.

REDD+ is a programme to keep forests standing in developing countries. This collaborative programme was agreed upon within the context of the United Nations Framework Convention on Climate Change (UNFCCC). REDD stands for “reducing emissions from deforestation and forest degradation” and the “+” refers to activities targeted towards conservation, restoration and sustainable management of forests. The main idea is to incentivise tropical countries to address the drivers of forest loss and to reward those that have managed to reduce emissions from deforestation.

“REDD Early Movers (REM)” is one of the most advanced REDD+ programmes, among a series of bilateral and multilateral initiatives that support and implement REDD+ globally. More information on the REM Programme can be found here.