Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
The development of climate-proofed harbor infrastruc- ture will involve constructing facilities designed to with- stand rising sea levels, increased storm intensity and coastal erosion, ensuring the continuity of maritime activities and connectivity. Adaptive measures such as sea walls, flood barriers and elevated structures will be implemented to protect the harbor infrastructure from climate-related disruptions. Supporting the Maldives’ NDC targets, the loan will di- rectly contribute to climate-proofing key infrastructure systems, supporting coastal adaptation planning and strengthening coral reef formations. This will promote public and private sector investment in green technolo- gies and sustainable practices, fostering economic oppor- tunities based on the sustainable use of natural resources and the development of circular economy models. Improved public health and livelihoods are anticipated through a reduction in waterborne diseases and other health issues related to inadequate water supply and sanitation. This will result in better overall public health. Enhanced livelihoods will stem from better access to safe water and sanitation, increased economic activi- ties in climate-resilient harbor areas and the creation of green jobs. By achieving these outcomes the loan will not only ad- dress immediate water, sanitation and infrastructure needs, but also contribute to the Maldives’ long-term climate resilience and sustainable development goals. This integrated approach aligns with the commitment to reducing GHG emissions and adapting to the impacts of climate change, fostering a healthier, more resilient and economically vibrant future.
identified, that there is a clear intent to address these vulnerabilities and that the financed activities are linked to this intent (three-step approach).
The project clearly identifies the adverse impacts of cli- mate change. As the approval document states, “A spe- cific climate change study was carried out covering tem- perature, rainfall, sea level, and implications for climate change over the lifetime of the project. The technical solutions finally adopted correspond to the most eco- nomic choices and will be designed to adapt to future climate changes in the Maldives.” The project also had a clear intent to increase resilience to climate change. The objective is to improve the living conditions of approximately 20,000 people on 13 outer islands by providing sustainable access to safe water supply, sanitation services and harbor infrastructure. This will promote health and connectivity, supporting eco- nomic growth and alleviating poverty in the country. The specific climate change study links sustainability to ad- dressing resilience needs. Adaptation finance has been estimated at US$25.62 million using a proportional approach. The project in- cludes a clear intent to address the identified vulnera- bilities and links the financed activities to reducing cli- mate vulnerability. Adaptation finance is calculated using the proportional approach as 100 percent of the OPEC Fund’s contribution to component 1, 50 percent of the contribution to component 2 and 20 percent of the con- tribution to component 3. The total amount of adaptation finance by the OPEC Fund is US$25.62 million.
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
The OPEC Fund financed adaptation activities in the pro- ject. To count adaptation finance it is essential to demon- strate that climate change vulnerabilities have been
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