The Climate Investment Funds (CIF) is one of the world’s largest and most ambitious climate finance mechanisms. Founded in 2008, it represents one of the first global efforts to invest in a dedicated climate finance vehicle.The CIF emerged from recognition by world leaders that climate change and development are inextricably intertwined. The CIF’s creation also recognized a need to fill a gap in the international climate finance architecture—to deliver climate-smart investment at scale. The CIF supports developing and emerging economies in shifting to low carbon and climate resilient development.
February 2008: Japan, the United Kingdom, and the United States formally announce their intention to create the funds.
May 2008: 40 developing and industrialized countries reached agreement on the funds’ design.
July 2008: The World Bank’s Board of Directors formally approved the CIF.
The CIF consists of the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF).
CTF supports renewable energy, low carbon technologies, energy efficiency, and clean transport in middle-income countries.
SCF finances new approaches or scales up activities through the Forest Investment Program, the Pilot Program for Climate Resilience and the Scaling Up Renewable Energy in low-income countries.
Program resources are channeled through the Multilateral Development Banks (MDBs)that work with national governments, private sector project sponsors, financial institutions, development partners, and other stakeholders.
The MDBs also help prepare country-led investment plans, and then implement the individual projects in those plans.
Building Partnerships for Climate Action
With its pragmatic operating approach to move quickly from concept to disbursement, the CIF endorsed more than $1 billion in funding for national clean technology programs and supported adaptation and climate-resilient development plans and implementing action strategies in 11 countries and regions.
- FIP, PPCR and SREP are established
- First 9 CTF investment plans endorsed
- MDBs make first CTF funding approvals for implementation (eq. $100 million)
Creating a Climate-Smart World
In just two years, the Climate Investment Funds progressed from the initial design phase to the implementation of 38 pilots in developing countries and transition economies around the world. The design of these funds presents a new model for transparency, cooperation, and scaling up climate action.
- 5 CTF investment plans endorsed
- 6 Countries selected for SREP
- 38 Pilots In implementation phase
INVESTING IN OUR GREEN FUTURE
The three-year-old CIF, with its balanced partnership of recipient and contributor countries, provides a strong and unique model for effective multi-stakeholder management of the CIF portfolio.
- 46 countries are implementing pilot programs
- 35 projects underway in renewable energy, energy efficiency, clean transport, sustainable forest management, and climate resilience
- 14 countries now contribute to the CIF
- 1 CTF, 4 SREP, 11 PPCR, and 2 FIP investment plans endorsed
Creating a climate-smart world
In its fourth year, the CIF is beginning to see the impact of a triple focus on programmatic planning, innovative investments, and multi-stakeholder engagement.
Funding for 66 projects in renewable energy, energy efficiency, clean transport, sustainable forest management, and climate resilience has been approved.
- $7.7 billion in CIF funds allocated across 49 countries
- 1 CTF, 2 SREP, 6 PPCR, 5 FIP investment plans endorsed
- First FIP projects MDB-approved for implementation
- DGM, a one-of-a-kind program provides Indigenous Peoples direct access to climate finance
Rooted in Learning, Growing with Results
- $400Mnew contributions
- $370+Mdedicated private sector programs
- $30MSREP to new countries
- $8BLeveraging + $55B in 48 countries
- Five years after a group of motivated countries and multilateral development banks planted the seed for the CIF, the lessons gathered so far are moving us to more effective results and contributing to shaping the future of climate finance.
New contributions received in 2013 raise the total amount pledged to the CIF to $8 Billion, offering additional opportunities to test the flexibility and reach of climate financing models.
More countries are moving to project implementation, disbursements are increasing and there’s a surge in submissions, approvals and learning.
The CIF also becomes the first climate fund to publish data with the International Aid Transparency Initiative.
DELIVERING AT SCALE, EMPOWERING TRANSFORMATION
For the last six years, the Climate Investment Funds have been leading efforts to deliver investments at scale to empower transformations in the energy, transport, and forestry sectors and climate-resilient development. New pledges in 2014 push the CIF’s total contributions to $8.1 billion and will allow expansion of its programs.
- $8.1 billion, attracting $57 billion in co-financing
- $746 million in new pledges from UK and Norway
- CIF investments expand to 63 countries
Empowering a Greener Future
The $8.3 billion CIF is leveraging an additional $58 billion in co-financing from other sources to catalyze transformational change in 72 developing countries.
- $4.9 billion—59% of CIF allocated financing—is MDB-approved for implementation as of December 31, 2015
- The 100 MW KaXu concentrated solar power plant in South Africa becomes the first operational private sector utility-scale CSP plant with storage in Africa, with $26.5 million from the CTF, and on track to generate enough renewable energy to power 80,000 households and mitigate an estimated 250,000 tons of GHG emissions each year.
- The CIF welcomes 10 new countries to the PPCR and 15 to the FIP, expanding the CIF’s global reach to 72 countries
- 7 SREP investment plans endorsed
Accelerating Climate Action
- 300+Investments so far
- In 72Developing countries
- $5.7BAllocated financing
- 3 GWNew renewable energy
- Having built a portfolio of over 300 investments in 72 developing and middle-income countries to scale up renewable energy and clean technologies, mainstream climate resilience in development plans and action, and support the sustainable management of forests.
Although most programs and projects are still in the early stages of implementation, our funding has already contributed to over 3 gigawatts of new renewable energy capacity and close to 3 million people are already benefiting from CIF-supported climate resilience measures.
- The urgency that sparked the creation of the $8 billion Climate Investment Funds becomes more pressing each day.
- $5.7 billion—69% of CIF allocated financing—MDB approved for implementation as of December 31, 2016
- 1 SREP, 3 FIP investment plans endorsed and funding approved for 1 country DGM program
- CIF Gender Action Plan Phase 2 is approved in December 2016
The Story so Far
52 million tons of greenhouse gas emissions, about 50% women, expected to be avoided per year by 70 CTF projects being implemented worldwide—like taking almost 11 million cars off the road
+39 million people, about 50% women, expected to benefit from enhanced climate resilience delivered by 44 PPCR projects in 15 countries—about the entire population of Uganda
28 million hectares of forest landscape expected to benefit from improved management delivered by 14 FIP projects being implemented in six countries—equivalent to the size of Burkina Faso
300,000 businesses and nearly 5 million people, about 50% women, expected to gain new or improved energy access through 18 SREP projects in eight countries and one region