November 1, 2013 Washington, D.C. — The Climate Investment Funds (CIF) concluded their week-long semi-annual Trust Funds Committees meetings today, endorsing over $385 million to support forest investments in Peru ($50m), energy access expansion in Liberia ($50m), and targeted private sector initiatives in clean technology, renewable energy financing, forest investments, and climate adaptation ($285.7m).
Reaching out to the private sector
To extend its reach to the private sector, the CIF governing bodies endorsed for the first time specific allocations for private sector initiatives through all four funding windows of the CIF.
Under the Clean Technology Fund (CTF), $150 million was approved for two Dedicated Private Sector Programs (DPSP): the Utility Scale Renewable Energy Program ($115m) to catalyze a global funding effort to scale up renewable energy, and the Renewable Mini-grids and Distributed Power Generation Program ($35m) to leverage private investment for rural and under-served communities.
Under the competitive private sector set-asides of the Pilot Program for Climate Resilience (PPCR), Forest Investment Program (FIP), and Scaling Up Renewable Energy for Low Income Countries (SREP), 15 project concepts, totaling over $135 million, were endorsed for further preparation by the multilateral development banks and full CIF funding approval in 2014. These include five forest-related initiatives in FIP pilot countries Brazil, Burkina Faso, Ghana, and Mexico; four renewable energy projects in SREP pilot countries Honduras, Kenya, Mali, and Nepal; and six projects for climate resilience in PPCR pilot countries Haiti, Jamaica, Mozambique, Saint Lucia, and Tajikistan.
"These new private sector mechanisms represent a significant step by the CIF to support innovative private sector financing to address climate change challenges. They will be closely monitored in the months ahead to ensure rapid implementation of funds and that lessons emerging from these efforts are captured and widely disseminated," said Patricia Bliss-Guest, CIF Program Manager.
Peru and Liberia investment plans advance
Closing out the investment planning phase of the FIP was endorsement of the final pilot country plan from Peru for $50 million.
“The process of formulating our FIP investment plan has allowed us to have a national debate, including the government, civil society, and the private sector, to identify a strategy on how to position forests as an important asset in our development and to implement enabling conditions to ensure economic growth, social inclusion, and sustainable environmental development,” stated Gabriel Quijandria Acosta, Peru's Vice Minister of Strategic Development of Natural Resources in the Ministry of the Environment.
Peru’s FIP investment plan is particularly unique for its extensive consultative process involving government and regional officials, experts from the Inter-American Development Bank and World Bank, civil society, and indigenous people and local community representatives in more than 20 meetings held in priority regions and in the capital. Stakeholder engagement is further exemplified in Peru’s FIP Steering Committee, which comprises the Ministries of Environment, Economy, Agriculture, and Culture; regional Amazonian governments; and national, regional, and local leaders of two Amazonian indigenous peoples groups: the Asociación Interétnica de Desarrollo de la Selva Peruana (AIDESEP) and Confederación de Nacionalidades Amazónicas del Perú (CONAP).
In a show of solidarity for Peru's investment plan, Daisy Sapata of AIDESEP joined Vice Minister Quijandria Acosta during his presentation to the FIP Sub-Committee to highlight the role of indigenous peoples in the Peruvian government's proposal, as well as their support.
Liberia’s $50 million investment plan was also endorsed under the SREP. In a country with less than 2 percent energy access, Liberia will use SREP resources to support efforts to increase energy access via off-grid electricity solutions; develop renewable energy such as small hydro, solar, biomass, and hybrids; and complement expansion of centralized generation and transmission facilities to contribute to the national goal of achieving 35 percent electrification rate by 2030.
“With the SREP, we will have a wide range of social economic impacts across the country. Expanding energy access will create jobs, empower women, and allow people to generate income and add value to their activities. This is going to be huge because it is looking at the grassroots level in rural communities that are far off the grid,” explained Augustus Goanue, Executive Director of the Rural & Renewable Energy Agency of the Ministry of Lands, Mines & Energy.
For more information, please contact:
Steven Shalita, CIF Communications