It was always going to be a make-or-break moment. Hard on the heels of a stark global stocktake and a UNFCC warning that 2023 will "shatter" previous climate records, expectations were high that COP28 would deliver a major injection of much-needed finance – especially for developing countries.
The Climate Investment Funds (CIF) team were on the ground in force at almost 40 events, forging new partnerships, sharing 15 years of proven expertise, and celebrating breakthrough announcements, including millions in freshly-pledged funds.
"Finance is the great enabler of climate action."
Simon Stiell, Executive Secretary of the United Nations Framework Convention on Climate Change
Unprecedented global action requires charting new courses and breaking down silos. As UN Climate Chief Simon Stiell put it: "It's time to ditch business as usual."
We agree. That’s why our presence at COP28 was marked by vibrant partnerships, from roundtables on women-led climate actions right through to high-level plans for supercharging storage.
We joined the Adaptation Fund, the Global Environment Facility, and the Green Climate Fund to announce a new era of intensified collaboration. As the world’s largest multilateral climate funds, together we have pumped $32 billion to date into climate action, along with $165 billion in co-financing. By pooling our strengths and expertise, we can amplify our impact even further.
“Today we are announcing our commitment to develop an ambitious and concrete action plan to enhance access to climate finance and increase the collective impact of our action.”
Multilateral Climate Fund Joint Statement COP28
One very tangible example was the first-ever Climate Funds Pavilion at COP28, the venue for events on shared actions, including streamlining processes, advancing gender equality in climate finance, and catalyzing development outcomes through climate investments. Our evaluation units also showcased real-life successes in financing the green transition.
We also lent our voice to critical action areas, such as joining the Global Covenant of Mayors for Climate & Energy, C40 Cities, and Cities Climate Finance Leadership Alliance in calling for more funding for green, climate resilient cities. To plug the gaps in essential global data used for climate forecasting, planning, and early warning systems, CIF signed on – along with other leading organizations – to a new agreement with the Systematic Observations Financing Facility.
COP28 concluded with a united call to transition away from all fossil fuels. Nearly 200 countries signed on to this landmark text, which also committed to tripling global renewable energy.
"The Conference of the Parties calls on countries to transition away from fossil fuels in energy systems in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050”
COP28 UAE Consensus
Many CIF partner countries took to the stage themselves, to kick-off exciting new transition plans or share early successes. North Macedonia, an Accelerating Coal Transition program country, launched their in-country platform. South Africa outlined their CIF-supported Just Energy Transition Partnership, while other sessions showcased partnerships in South East Asia.
We also held a live run-through of our two new resources: the Just Transition Planning Toolbox for equitable and inclusive energy transitions and the ReACT Tool for coal transition planning.
The first week got off to a running start, with the announcement at our that the US government is ploughing an extra $568 million into our Clean Technology Fund (CTF).
That same day, a 2024 launch was confirmed for the eagerly-awaited CIF Capital Markets Mechanism. This innovative new climate finance vehicle is expected to galvanize private sector investment for climate action, by issuing bonds on capital markets. As CIF interim CEO Luis Tineo put it, this will raise critical concessional finance for developing countries “now, when it is most needed.”
“I am really excited by the work that CTF is currently doing to help expand its funding model to be able to tap into capital markets… this has the potential to make the CTF, I think, the most financially efficient fund out there.”
Alexia Latortue, United States Assistant Secretary of the Treasury for International Markets
One of the toughest sectors to crack is heavy industry, responsible for one quarter of global greenhouse gas emissions.
But it must – and can – be done. In our high-level session on the urgency of decarbonizing industry, CIF showcased the partners and initiatives already working together to drive change. We also joined dedicated events on promising new initiatives, including decarbonization plans for Turkiye, Brazil’s new Hubs for Industrial Decarbonization and Hydrogen Transitions, and international efforts to accelerate decarbonization.
Our new Industry Decarbonization program will use concessional finance to drive the decarbonization of hard-to-abate sectors, right across the developing world. – Our goal is to prove change is not only possible, but replicable.
With cities accounting for 60% of greenhouse gas emissions and their inhabitants uniquely vulnerable to acute climate impacts, Day 7 at COP28 was dedicated to the cities of tomorrow.
Rwanda provided insights on the Green City Kigali project supported by CIF, the first of its kind in Africa promoting compact, low-carbon transport. CIF will soon launch a cutting-edge Climate Smart Cities program, building upon 15 years of experience in financing sustainable cities.
Although Indigenous peoples and local communities safeguard 80% of the world’s biodiversity, they receive only 1% of all international climate finance.
A major step towards rectifying this was taken at COP28. In a watershed declaration, over 30 countries and coalitions committed to coordinated action on climate, biodiversity, nature and people – including a dramatic increase in direct, accessible finance for Indigenous peoples, local communities, women, girls, and youth.
This is an approach CIF has been championing through our long-standing Direct Grant Mechanism for nature-based initiatives. At a high-level session on smart climate finance with Indigenous champions from across the developing world, hosted by our partner country Zambia, we were honored to hear celebrated conservationist Dr. Jane Goodall praise CIF’s nature-positive finance.
“I understand the Climate Investment Funds (CIF) recognizes the interdependence between land use, climate change, and people, and is championing this cause using their proven model through the Nature, People and Climate investment program and the Dedicated Grant Mechanism for Indigenous peoples and local communities, a program I have been supporting since I first heard about it.”
Dr Jane Goodall