CLEAN TECHNOLOGY FUND
GLOBAL WARMING CAN BE LIMITED BY REDUCING OR AVOIDING GREENHOUSE GASES STEMMING FROM HUMAN ACTIVITIES—PARTICULARLY IN THE ENERGY, INDUSTRY, TRANSPORT, AND BUILDING SECTORS WHICH TOGETHER ACCOUNT FOR OVER 75% OF GLOBAL EMISSIONS1. LOW CARBON TECHNOLOGIES ARE KEY TO ACHIEVING MITIGATION WHILE CREATING NEW ECONOMIC OPPORTUNITIES.
ESTABLISHED IN 2008, THE $8.3 BILLION CLIMATE INVESTMENT FUNDS (CIF) ADDRESS THESE CHALLENGES BY DELIVERING INVESTMENTS AT SCALE TO EMPOWER CLIMATE-SMART TRANSFORMATION.
In early 2015, KaXu Solar One Concentrated Solar Power (CSP) project in South Africa, financed by IFC and CTF, became the first operational private sector utility-scale CSP plant in the developing world. This 100MW plant supplies enough base-load energy to power 80,000 households and mitigate roughly 300,000 tCO2/year.
Photos: Abengoa Solar
The EBRD and CTF jointly supported the rehabilitation and modernisation of the privately-operated district heating networks in the cities of Pavlodar and Petropavlovsk in north-eastern Kazakhstan, in one of the first CTF-financed infrastructure projects to be implemented. The project addressed the urgent need to modernize district heating infrastructure, resulting in operational cost savings, improved quality and stability of service, reduced hot water and heat losses, and improvements in environmental standards, leading overall to substantial CO2 emissions savings.
Photos: EBRD/Lucia Sconosciuto
This program is financing the purchase of a pilot fleet of clean technology buses for Bogota’s Integrated Public Transport System (SITP). With technical cooperation resources from the IDB, the program has identified benefits, generated trust, and demonstrated the performance of clean technologies. By working with bus operators, technology providers, financiers, and other value chain stakeholders, the program has created a new local market, with lower
prices. As of December 2015, 287 clean technology buses had been incorporated into the SITP fleet, including 180 buses directly financed with CTF resources. and other value chain stakeholders, the program has created a new local market, with lower prices. As of December 2015, 287 clean technology buses had been incorporated into the SITP fleet, including 180 buses directly financed with CTF resources.
The European Bank for Reconstruction and Development (EBRD) and the Climate Investment Funds, through its Clean Technology Fund (CTF), are investing $125 million in Turkey's geothermal potential under the PLUTO Initiative (Private Sector Early Stage Development Framework), as part of a global push to scale up renewable energy production.
1 Intergovernmental Panel on Climate Change, “Fifth Assessment Report (AR5) Synthesis Report,” 2014.
The $5.8 billion Clean Technology Fund, is a funding window of the CIF (Climate Investment Funds). It is empowering transformation in developing and emerging economies by providing resources to scale up low carbon technologies with significant potential for long-term greenhouse gas emissions savings.
Over $3.8 billion (66 percent of CTF resources) is approved and under implementation in clean technologies such as renewable energy, energy efficiency, and clean transport.
This is expected to leverage another $38 billion in co-financing. CTF concessional financing, channeled to countries through partner multilateral development banks (MDBs), is boosting investor confidence and attracting significant co-financing from other sources.