Evaluation of EIB support to Climate Change Adaptation

Five years ago, the EuropeanInvestmentBank (EIB) launched a climate strategy which included a commitment to increase financing for climatechangeadaptation (CCA). Yet, the support to CCA has remained at around 1 billion a year or 1-2 % of EIB annual lending.
PEM has been contracted by the Bank to undertake an evaluation to understand what the bottlenecks are that have led to a low level of support for CCA and determine the factors, both internal and external, that have a minor or major impact on the low volume of CCA finance.
The evaluation team is looking at 3 levels: 1) Institutional level, which includes the analysis of relevant strategies, policies, business model, operational practices, and incentive structures; Country-level, which includes the analysis of support to CCA in Poland, Spain, France, Malawi, Mozambique, and Jordan; and Sector/Project level, i.e., CCA projects from 1-2 sectors within each of the countries.
The evaluation findings will feed into the development of an EIB climate change adaptation plan.

Formulation of the Danish support to the African Water Facility

The Sahel and Horn of Africa are among the most affected areas in Africa from impacts of global warming and climate change. The region is characterized by strong climatic variability, irregular rainfall and persistent drought. Water is a limiting factor for development in the Sahel and Horn of Africa. Floods and droughts, a common occurrence in the region, affect millions of people every few years.With 149,5 million DKK, Denmark will support the recovery of five countries in the Sahel and Horn of Africa (Mali, Niger, Burkina Faso, Ethiopia, and Somalia) from the Covid-19 pandemic by improving existing water supply and sanitation services and leveraging new investments in water and sanitation infrastructure in the countries.

The support will be channeled through the African Water Facility (AWF), established by the African Ministers’ Council on Water to assist African countries in the mobilization of financing and use of the funds in addressing the Water, Sanitation and Hygiene challenges.

PEM is currently supporting the programmeformulation of the Danish support to the AWF. We are finalizing a draft concept note and in close collaboration with the AWF and Danish Ministry of Foreign Affairs developing the programme document with all annexes.

PEM’s carbon offsetting strategy

The promotion of sustainable development is PEM’s core business, and the commitment to sustainable development is also a core value and part of our identity. In our work, we contribute to green growth, low-carbon development, and handing over a healthy planet to future generations. However, PEM operates globally, and as a result frequent air travel is an inevitable part of our operations. Air travel is by far where we have our biggest environmental and climate-related footprint. Hence, since we cannot avoid air travel, we offset our carbon emissions as the second-best option to act as a responsible firm. Our carbon offsetting scheme is two-pronged in order to maximise its positive impact: a) we utilise the airlines’ own carbon compensation schemes when carbon offsetting can be purchased as part of the ticket, and b) the PEM Carbon Partnership, launched in connection with PEM’s 25-year anniversary in 2020, supports selected climate change interventions financially or with pro-bono technical inputs. 


In the PEM Carbon Partnership, we prioritise carbon offsetting that has both socio-economic and environmental co-benefits, investing in carbon offsetting initiatives with low transaction costs. The financial contribution is determined on the basis of PEM’s air travel carbon emissions. The PEM Carbon Partnership is therefore supporting the Integrating Livelihoods and Conservation - People Partner with Nature for Sustainable Living (PPN) Program implemented by BirdLife Denmark (Dansk Ornitologisk Forening). The PPN Program, in collaboration with national partners, governments, local conservation groups and communities, promotes sustainable and participatory forest management while improving livelihoods and building climate change resilience around Important Bird and Biodiversity Areas in Kenya, Nepal and Uganda.