Asian Countries Tap Climate Funds for $800 Million in Boost for Innovative Climate Action
 Climate Investment Funds to mobilize $10 billion for Asian transformation in clean energy and low-carbon growth
 
COPENHAGEN, December 16, 2009— Three countries in Asia are poised to integrate new efforts for  low-carbon growth in their national development plans after countries governing the Climate Investment Funds (CIF) endorsed a first-ever infusion of new funding from the CIF Clean Technology Fund (CTF) for Asia on December 1.
 
Vietnam, the Philippines, and Thailand have been awarded a total of $800 million in support of investment plans for a range of innovative climate activities.  These include catalyzing private sector investments in energy efficiency and renewable energy through local banks, transmission system upgrades to reduce losses and support renewable energy development, and significant urban transport improvements, through the Asian Development Bank and World Bank Group.  Altogether, the three national investment plans are anticipated to mobilize nearly $10 billion in co-financing from government, private sector, and other sources.
 
"As governments meet in Copenhagen to find a means to cope with the global impacts of climate change, these three low-carbon investment plans by developing countries offer a critical signal of engagement on the part of Asia and a signal about the future of cooperation for sustainable development,"”said World Bank Group President Robert B. Zoellick. "These investment plans are pathfinders in sustainable growth and climate resilient development. I appreciate Vietnam, the Philippines, and Thailand for working with the World Bank Group on this forward-thinking investment."”
 
"In supporting global efforts to reduce greenhouse gas emissions, these investments will contribute to increased economic efficiency and energy security," said Asian Development Bank President Haruhiko
Kuroda. "The strong cooperation between the multilateral development banks and our partner countries in preparing these innovative programs illustrates how we must work together to overcome the challenges of climate change while reducing poverty and improving people's quality of life."
 

The Vietnam Investment Plan will use $250 million in CTF co-financing for industrial energy efficiency; energy efficiency programs led by energy service companies (ESCOs); initial capitalization of Energy Conservation and Renewable Energy Funds; transmission system modernization; direct investment and a risk-sharing facility for private sector renewable energy development; and enhancements to urban rail systems in Hanoi and Ho Ch Minh City.  The CTF investments will mobilize financing of about $3.195 billion from the government, multilateral financiers, carbon finance, and the private sector.
 
The Thailand Investment Plan will use $300 million in CTF co-financing to support the government's ambitious target of a 20% share of alternative energy by 2022 and the Bangkok Metropolitan Authority's goal of reducing greenhouse gas emissions by 2012 by 15%.  The Investment Plan prioritizes activities that will catalyze private sector investments in renewable energy and energy efficiency through the government's Specialized Financial Institutions and private commercial banks as financial intermediaries, and investments in renewable energy and energy efficiency by state-owned electric utilities as part of a clean energy advancement program.  The Investment Plan will also support urban transformation through CTF co-financing for bus rapid transit and a first-of-its-kind urban GHG reduction action plan to build energy efficiency in Bangkok.  The CTF investments will mobilize financing of more than $4 billion from the government, multilateral development banks, carbon finance, and the private sector.
 
The Philippines Investment Plan will use $250 million in CTF co-financing to support government efforts to maintain and increase the country’s large share of renewable energy and to implement the National Environmentally Sustainable Transport Strategy.  The Investment Plan prioritizes activities that will catalyze private sector investment in distributed generation through renewable resources, provide investment support and risk mitigation for the private sector's entry into energy efficiency and cleaner production sectors, promote solar generation with net metering, and introduce Bus Rapid Transit Systems in Cebu and Metro Manila.  The CTF investments will mobilize financing of about $2.5 billion from the government, multilateral development banks, carbon finance, and the private sector.
 
The three Asian Investment Plans bring the total of CTF-funded Investment Plans to nine. Five other countries – Egypt, Mexico, Morocco, South Africa, and Turkey -- already have Investment Plans endorsed and are in the process of development and implementation of projects.  In addition, the CTF Trust Fund Committee on December 1, 2009 endorsed the first regional Investment Plan, a $750 million Plan for scaling up Concentrated Solar Power in five countries in the Middle East and North Africa region.
 
The Climate Investment Funds (CIF) are a unique pair of financing instruments designed to test what can be achieved to initiate transformational change towards low-carbon and climate-resilient development through scaled-up financing channeled through the Multilateral Development Banks.  The two funds are the Clean Technology Fund (CTF), financing scaled up demonstration, deployment and transfer of low-carbon technologies for significant greenhouse gas reductions within country investment plans; and the Strategic Climate Fund (SCF), financing targeted programs in developing countries to pilot new climate or sectoral approaches with scaling-up potential.
 
Both the CTF and SCF trust fund committees have equal representation from developed and developing countries.  Recognizing the imperative of climate change deliberations underway in the UN Framework Convention on Climate Change (UNFCCC), the CIF were designed as an interim measure to strengthen the global knowledge base for low-carbon and climate-resilient growth solutions.
 
The CIF are implemented jointly by the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Finance Corporation, and World Bank.
 
For more information, please visit: http://www.climateinvestmentfunds.org.