Environment Directorate

Financing Climate Action in Eastern Europe, the Caucasus and Central Asia

In series:Green Finance and Investmentview more titles

Published on November 23, 2016

Also available in: Russian

This report aims to shed light on how EECCA countries and development co-operation partners are working together to finance climate actions, using the OECD DAC database to examine finance flows by provider, sector, financial instrument, channel, etc. A significant amount was committed by international public sources to the 11 countries comprising the EECCA in 2013 and 2014 (i.e. USD 3.3 billion per year), but the scale of such finance varies considerably from country to country and is insufficient to achieve and strengthen their climate targets communicated through the Intended Nationally Determined Contributions COP21.In addition, while a range of climate-related policies have already been developed by the EECCA countries, the extent to which such policies are being effectively implemented and conducive to attracting climate finance is still unclear. In this respect, this report proposes a set of questions for the EECCA countries to self-assess their readiness to seize opportunities to access scaled-up climate finance from various sources: public, private, international and domestic.


Reader's guide
Abbreviations and acronyms
Executive summary
Scaling-up finance to support climate actions in EECCA countries
Landscape of climate-related development finance at regional level
Assessing readiness to access climate finance
Country profiles
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 Also available Key figures and findings / Workshops and presentations


Armenia (PDF)

Azerbaijan (PDF)

Belarus (PDF)

Georgia (PDF)

Kazakhstan (PDF)

Kyrgyzstan (PDF)

Moldova (PDF) 

Tajikistan (PDF) / Russian

Turkmenistan (PDF)

Ukraine (PDF)

Uzbekistan (PDF)


Key Figures and findings

Bilateral and multilateral development co-operation partners committed USD 3.3 billion of development finance per year over 2013 and 2014 to climate actions in 11 countries of Eastern Europe, the Caucasus and Central Asia (EECCA).  

Annual Climate-related development finance flows for mitigation and adaptation:
Comparison between EECCA countries and the total of all recipients (Average 2013-14)

EECCA Climate Finance pub page - Figure 1

Note:Total climate-related development finance = Mitigation + Adaptation-Multi-focal (both)

Compared to other regions in the world and in terms of gross domestic product (GDP) per capita levels, the commitment to the EECCA countries represented a relatively fair share of development finance for their climate actions.

Annual climate-related development finance flows by region (Total and per capita: average 2013-14)

EECCA Climate Finance pub page - Figure 2

Note: The data above excludes some of the trans-boundary projects accross countries/regions to avoid double counting.

While significant amounts of climate-related development finance were committed to the EECCA countries, the scale of finance directed to each country is considerably different. Nevertheless, all the EECCA countries still need scaled-up finance from international and domestic sources to achieve their mitigation and adaptation targets under their INDCs and other policy documents. 

Annual climate-related development finance flows in the EECCA region (Annual total per capita: average 2013-14)

EECCA Climate Finance pub page - Figure 3

Nearly half of climate-related development finance in 2013 and 2014 was committed to the energy sector, followed by the agriculture, forestry, and water supply and sanitation sectors. Mitigation finance (81%) outweighs adaptation finance (11%) in the region. These reflect the EECCA countries’ large financial needs for replacing or rehabilitating their aged, inefficient energy-sector infrastructure, amongst others.

Annual Climate-related development finance to EECCA region by sector (USD million in 2013 and 2014)

EECCA Climate Finance pub page - Figure 5

Climate-related development finance flows as a share of total development finance markedly vary across key sectors in the EECCA region. 69% of development finance for the energy sector is climate-related, while there seems to be a great potential to further mainstream climate-related objectives into development finance for the transport, industry, and agriculture sectors. 

Climate-related development finance as a share of total development finance in the key sectors (%: in 2013-14)

EECCA Climate Finance pub page - last figure

Note: For more information on the data source and definitions, please see Reader’s Guide of the publication.

Further reading: related reports and workshops