Clean Technology Fund

CTF $1.2 billion is contributing to development of over 1.2 GW of concentrated solar power across MENA, Chile, India and South Africa -- about 1/3 of 3.4 GW global installed capacity. Photo: Jitendra Parihar/TRF

The $5.3 billion Clean Technology Fund (CTF), a funding window of the Climate Investment Funds, was established in 2008 to provide scaled-up financing to middle income countries to contribute to the demonstration, deployment and transfer of low carbon technologies with a significant potential for long-term greenhouse gas emissions savings.  CTF concessional financing, channeled through five partner multilateral development banks (MDB), focuses on large-scale, country-led projects in renewable energy, energy efficiency, and transport.

•  The CTF pipeline of 134 projects and programs totals $6.1 billion and expects co-financing of $51 billion from other sources.
• CTF $3.9 billion (74% of CTF funding) is approved for 70 projects, leveraging $44 billion in co-financing, to deliver 16.6 GW of renewable energy capacity of which 2.2 GW is already installed.
• CTF investments are projected to result in approximately 1.7 billion tons of CO2 emission reductions over their lifecycle—like taking 550 million cars off the road.

The CTF differs significantly from other mitigation-focused, multilateral climate instruments by focusing on larger transactions in a smaller number of countries. The CTF aims to drive down technology costs, stimulate private sector participation, and catalyze transformative change that can be replicated elsewhere.  The CTF is currently operational in 19 countries, including one regional program. 

Dedicated Private Sector Programs (DPSP)

CTF Latin America Region:  Chile, Colombia, Mexico

CTF Middle East and North Africa (MENA) Region countries: Egypt, Jordan, Morocco, Tunisia, Libya, Algeria

The CTF supports a range of low-carbon technologies and initiatives: 

• Renewable energy: concentrating solar power, solar photovoltaic, geothermal, wind, small hydro 
• Sustainable transport: bus rapid transit, public transportation, high-efficiency vehicles, modal shifts
• Energy efficiency: industry, building, district heating, municipal, lighting, appliances

CTF and the Private Sector

The private sector is a key player in the CTF, with 30% of all investment plan allocations going to private sector projects and programs specified in these plans. In 2013, the CIF embarked on new financing paths that put greater emphasis on reducing barriers to private sector participation. The Dedicated Private Sector Programs (DPSP) under the CTF were created to finance operations that can deliver scale and speed while maintaining country priorities. The DPSP are currently in their second phase and have allocated a total of $ 508.5 million to eight programs reaching countries as diverse as Chile, Colombia, Indonesia, Mexico, Turkey, Haiti , Honduras, Ghana, and Mali.

Updated November 2014