This paper analyses flows of climate finance to Cape Verde, the Comoros, Guinea-Bissau, the Maldives, Mauritius, São Tomé and Príncipe, and the Seychelles. This report highlights important trends in the allocation of climate finance across the region. Complementary analysis to evaluate the actual outcomes of climate finance for communities in the Indian Ocean and African small island developing states (SIDS) is required in order to better understand how effectively the limited resources are being deployed.
The data from the Organisation for Economic Co-operation and Development Assistance Committee Creditor Reporting System shows that, during the six years from 2010 to 2015 inclusive, US$ 978 million was committed to these countries with the principal purpose of addressing climate change. Of this, 83% was committed to Cape Verde and Mauritius. The Comoros, Guinea-Bissau and São Tomé and Príncipe – all classified as Least Developed Countries – received the least climate finance. Nearly three-quarters of the flows were in the form of concessional loans (US$ 727 million); grants accounted for the remaining 25%. Regionally, 56% of the financing targeted mitigation activities (US$ 543 million), 42% adaptation activities (US$ 412 million), and 2% targeted both mitigation and adaptation.
The sectors benefiting most from climate finance were water and sanitation (US$ 345 million), energy (US$ 322 million), and ‘general environmental protection’ (US$ 245 million), suggesting a narrow focus on a few sectors. Over 90% was delivered as project-based support. Disbursement of committed funds across the region amounted to 39% of the total commitments (US$ 384 million) and varied from country to country. The proportion of climate finance disbursed was considerably lower than the proportion of other ODA flows disbursed.