The Inter-American Development Bank today announced the goal of doubling the volume of its climate-related financing by 2020. In order to increase investments in adaptation, particularly for countries within the region that are most vulnerable to the impacts of climate change, the Bank also committed to screen all relevant projects for climate risks and resilience starting in 2018.
Since 2008 Climate Investment Funds (CIF) have been funding a quiet, billion-dollar revolution aimed at reducing carbon emissions and transforming the economies of countries across Africa, Asia and Latin America.
And with a number of events this week highlighting the urgency and importance of tackling climate change, Mafalda Duarte, Program Manager of the Climate Investment Funds says “the momentum is building on climate action.”
She said: "With the Pope bringing his message to the United States, Climate Week taking place in New York, and the United Nations adopting new goals for sustainable development, the momentum is building on climate action. Climate change affects us all but it’s hitting poor people first and worst. Climate change threatens to wipe out decades of development progress."
The CIF has been working with partners to support the expansion of investments in renewable energy technologies at an unprecedented rate to stimulate markets and increase energy access in 33 countries worldwide. Close to 60 percent of CIF funding—$4.8 billion—is focused on renewable energy development, especially geothermal and Concentrated Solar Power (CSP).
"A low-carbon economy can deliver more jobs, increase growth, and reduce climate impacts. And with our investments in renewable energy—from geothermal to Concentrated Solar Power — the CIF is demonstrating the power of well-placed concessional financing to stimulate climate action”, said Duarte:
Climate change is affecting poor countries disproportionately and in different ways – droughts can destroy a harvest, floods can wreck homes and schools, and extreme weather can have a devastating impact on countries’ economies. So building countries’ resilience to adapt to a changing climate is crucial, says Duarte:
"Attention must be given to managing current and future impacts of climate change to protect lives and livelihoods. With our investments in adaptation, the CIF is well-placed to share lessons on how to help communities and countries not just survive but thrive."
About the Climate Investment Funds
The Climate Investment Funds (CIF) is providing 72 developing and middle income countries with urgently needed resources to mitigate and manage the challenges of climate change and reduce their greenhouse gas emissions. The CIF allocates financing through four funding windows:
- The $5.3 billion Clean Technology Fund (CTF) provides middle-income countries with highly concessional resources to scale up the demonstration, deployment, and transfer of low carbon technologies in renewable energy, energy efficiency, and sustainable transport.
- The $785 million Forest Investment Program (FIP) supports efforts of developing countries to reduce deforestation and forest degradation and promote sustainable forest management that leads to emissions’ reductions and enhancement of forest carbon stocks (REDD+).
- The $1.2 billion Pilot Program for Climate Resilience (PPCR) is helping developing countries integrate climate resilience into development planning and offers additional funding to support public and private sector investments for implementation.
- The $796 million Scaling Up Renewable Energy in Low Income Countries Program (SREP)is helping to deploy renewable energy solutions for increased energy access and economic growth in the world’s poorest countries.
About Mafalda Duarte
Mafalda Duarte is the Manager of the $8.1 billion Climate Investment Funds (CIF). She has over 15 years of work experience and in-depth knowledge in development and climate change. She has been responsible for the design and implementation of several funding mechanisms and new thematic programs. She holds degrees in international relations, economic policy management and climate change.
CONTACT: Martin Hall: +1 202 4585540 / firstname.lastname@example.org
As world leaders come together at the UN General Assembly to adopt new sustainable development goals, climate change activists gear up for Climate Week in New York City and the Pope brings his message to the United Nations, a shared vision of our future is coming into clear focus. If we are to eradicate poverty, we need to tackle climate change. And since 2008, the $8.1 billion Climate Investment Funds (CIF) has been showing it is possible for countries to pursue sustainable development in a way that does just that.
In Thailand, increased energy and electricity consumption is helping lift its population out of poverty but has also caused greenhouse gas emissions to grow by almost 70% from 2000 to 2010. But Thailand is on the verge of a solar energy transformation as private companies have committed to investing at least USD 2 billion over the next five years in solar power production. The woman leading the country down a cleaner path is Wandee Khunchornyakong, who runs Solar Power Company Group, the largest solar power generation company in Thailand
70 financial institutions – ranging from regional and microfinance institutions to national and global banks – from over 20 countries have vowed to step up financing for energy efficiency investments and develop business strategies that save energy and reduce carbon emissions. They made their pledge at a two-day conference, “Building a Global Energy Efficiency Financing Alliance”, held by the EBRD jointly with the UNEP FI in the run up to the G20 summit and COP21 climate talks in Paris, with the support from Turkey’s Garanti Bank, the CIF and MWH Global, a water and natural resources firm.
In recent years, the South African electricity sector, once operationally efficient, ran into major capacity constraints. As a result, power rationing and other measures instituted to prevent the electricity system from collapsing affected the entire economy, especially the country's mining industry, leading to shutdowns of some of the largest mining operations, putting thousands of jobs at risk.
The EBRD’s engagement in support of sustainable energy has passed a new milestone: for the first time the Bank’s investments in renewables overtook those for thermal power generation. This illustrates the EBRD’s commitment to both types of energy generation in order to strengthen sustainable energy. Between 2006 and the end of 2014, the EBRD invested €16.4 billion in sustainable energy and climate change projects under the framework of the Sustainable Energy Initiative. Financing for renewable energy generation represented roughly 23 per cent or approximately €4 billion.
The EBRD, with the support of the Climate Investments Funds (CIFs), is helping the citizens of Pavlodar in Kazakhstan enjoy better heating services. Another spring, another new start or Nauryz, a ‘new day’, as it is called in Kazakhstan. The celebrations for the end of the long, cold winter always have special significance in Central Asia, where the steppe is blown by fierce winds and temperatures drop to -30 for months on end.
Last Saturday, the EBRD won a landmark award for its pioneering work on Kazakhstan’s first wind farm to be financed under a new feed-in-tariff mechanism that the EBRD helped to develop.
“It’s been our honour to receive the AmCham Environmental and Safety Award for the Yereymentau project tonight,” co-OL Xenia Rogan, Principal Banker in Kazakhstan with the Energy, Russia, Caucasus & Central Asia team, reported to colleagues.
Kazakhstan Director Janet Heckman, also at the ceremony at the Rixos Hotel in Almaty along with 280 guests including economy and regional integration ministers, added, “Xeniya and I were really pleased to accept the award.”
“Supporting clean energy projects is at the core of the EBRD’s mandate. We stand ready to assist Kazakhstan in unlocking its potential in renewables by financing pilot projects with strong local and foreign companies,” said Riccardo Puliti, EBRD Managing Director for Energy and Natural Resources, who also signed an agreement to prepare the Yereymentau project for domestic carbon offsets during Kazakh Prime-Minister’s visit to EBRD HQ. The Carbon Agreement should create a supply of carbon credits and support the development of the Kazakh Emission Trading Scheme, which is among the first in Asia and highly relevant in the context of the upcoming Paris Climate Change negotiations later this year.
Managing Director Olivier Descamps congratulated the team, calling the award “a well deserved recognition in this crucial space where the EBRD is leading the way in the country.” He thanked all the staff who, over the years, have made this into a credible and visible topic.
The project is inspirational in its scope and imagination. The EBRD and the Clean Technology Fund (CTF) have financed the construction, connection to the power transmission grid, commissioning and launch of a greenfield 50 MW wind power plant at Yereymentau in central Kazakhstan.
The EBRD has provided a KZT 14 billion (€70 million) loan to Wind Power Yereymentau, a special purpose vehicle incorporated in Kazakhstan, while up to €18 million of concessional financing comes from the CTF. The loan is guaranteed by JSC Samruk-Energo, the ultimate owner of the company.
Yereymentau Wind Park will be the first power sector project in Kazakhstan to receive CTF funding.
The wind power plant is expected to offset 120,000 tons of CO2 per annum, an equivalent of 450 return flights from Astana to Almaty, in a country still dominated by coal-fired power generation.
Most of the electricity - over 70 per cent - produced in Kazakhstan today is still generated by coal-fired power plants benefiting from easily accessible local coal reservoirs.
However, Kazakhstan is seen as one of the most promising countries in the CIS for both wind and photovoltaic energy investments. About 50 per cent of Kazakhstan’s territory has an estimated average wind speed of about 4-5 m/s with overall wind potential estimated at around 18,000 GWh per year. Until now, renewable energy in Kazakhstan has mainly been represented by a few hydropower plants mostly built in Soviet times.
The EBRD support for the Yereymentau wind project is the result of successful cooperation with the government of Kazakhstan on creating the legal and regulatory frameworks for renewable energy. The Renewable Energy Law was introduced in June 2013, with tariffs for renewable energy off-take agreed in 2014.
This first wind farm in the country will road-test the new regulations and will set the benchmark in terms of developing, building and operating a greenfield renewable project.
Nigel Jollands, Senior Policy Manager, Energy Efficiency and Climate Change, commented that Saturday’s prize recognised “such an important first project in this crucial sector. I hope our work will lead to many more such investments.”
Estimates by Mexico´s National Program for Sustainable Energy Use (PRONASE), predict potential savings in final energy consumption resulting from the implementation of energy efficiency mechanisms ranging from 34,800 to 40,500 GWh by the year 2025. Despite the important role played by ESCOs in the energy efficiency market in Mexico, the funding sources they have been able to tap for such projects are usually limited, expensive, and have very short terms, which at times makes financing unfeasible.