The Climate Investment Funds (CIF) is a multilateral fund established to finance and scale climate pilot projects in developing countries. Established in 2008 at the request of the
G8 and
G20
The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, ...
, the CIF administers a collection of programs that help resource-strapped nations fight the impacts of
climate change
In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to E ...
and accelerate the shift to a
low-carbon economy
A low-carbon economy (LCE) or decarbonised economy is an economy based on energy sources that produce low levels of greenhouse gas (GHG) emissions. GHG emissions due to human activity are the dominant cause of observed climate change since the mi ...
. Through contributions from 14 donor countries, CIF supports more than 350 projects in 72
low and middle-income countries on the frontlines of the
climate crisis
''Climate crisis'' is a term describing global warming and climate change, and their impacts. The term and the alternative term ''climate emergency'' have been used to describe the threat of global warming to humanity (and their planet), and to u ...
.
Mafalda Duarte, a
Portuguese
Portuguese may refer to:
* anything of, from, or related to the country and nation of Portugal
** Portuguese cuisine, traditional foods
** Portuguese language, a Romance language
*** Portuguese dialects, variants of the Portuguese language
** Portu ...
national, is the current
CEO
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
of CIF.
CIF partnerships have channeled more than $60 billion from governments and the private sector to projects such as the
world's largest solar park, the
first geothermal power plant in South America, and investments in
Mexico’s wind power industry
The wind power industry is involved with the design, manufacture, construction, and maintenance of wind turbines. The modern wind power industry began in 1979 with the serial production of wind turbines by Danish manufacturers. The industry is un ...
. CIF supports 10 of the UN’s 17
Sustainable Development Goals
The Sustainable Development Goals (SDGs) or Global Goals are a collection of 17 interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future".United Nations (2017) R ...
(SDGs).
CIF works in partnership with governments, the private sector, civil society, local communities, and six major
multilateral development banks
An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, al ...
(MDBs).
Independent evaluations have shown that CIF has succeeded in progress toward a climate-smart future, particularly in the areas of
clean technologies,
energy access
Energy poverty is lack of access to modern energy services. It refers to the situation of large numbers of people in developing countries and some people in developed countries whose well-being is negatively affected by very low consumption of ene ...
,
climate resilience
Climate resilience is defined as the "capacity of social, economic and ecosystems to cope with a hazardous event or trend or disturbance".IPCC, 2022Summary for Policymakers .-O. Pörtner, D.C. Roberts, E.S. Poloczanska, K. Mintenbeck, M. Tignor, ...
, and
sustainable forests.
CIF investments are overseen by a governing board that provides equal authority to donor and recipient countries with input from official observers representing the private sector, civil society, and indigenous peoples.
CIF consists of two funds, the Clean Technology Fund and the Strategic Climate Fund.
Clean Technology Fund
The
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
is the Trustee of the CIFs, which works with most major multilateral development banks. In June 2019, the CIF governing board decided to indefinitely postpone the CIF "
sunset clause
In public policy, a sunset provision or sunset clause is a measure within a statute, regulation or other law that provides that the law shall cease to have effect after a specific date, unless further legislative action is taken to extend the law ...
."
Solar thermal power
Concentrated solar power (CSP, also known as concentrating solar power, concentrated solar thermal) systems generate solar power by using mirrors or lenses to concentrate a large area of sunlight into a receiver. Electricity is generated when ...
provides a useful illustration because it shows promise as a renewable option for
baseload
The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants, dispatchable generation, or by a collection of smaller intermittent e ...
power. A recent study indicates that under a
carbon pricing
Carbon pricing (or pricing), also known as cap and trade (CAT) or emissions trading scheme (ETS), is a method for nations to reduce global warming. The cost is applied to greenhouse gas emissions in order to encourage polluters to reduce the co ...
scheme with charges consistent with the low-end requirements for safe atmospheric carbon loading, public financing through the CTF Fund could close the cost gap between solar thermal and coal-fired power in a 5 to 10-year program that expands capacity at 500–1000
MW/year. Total Clean Technology Fund subsidies for this program would be $4 – $8 billion – easily within the range for a serious multilateral effort.
Strategic Climate Fund
The Pilot Program for Climate Resilience (PPCR) is the first program under the Strategic Climate Fund. It seeks to explore practical ways to mainstream climate resilience into core development planning and budgeting that is consistent with poverty reduction and sustainable development goals. The PPCR will build on
National Adaptation Programme of Action
A National Adaptation Programme of Action (NAPA) is a type of plan submitted to the United Nations Framework Convention on Climate Change (UNFCCC) by least developed countries, to describe the country's perception of its most "urgent and immediat ...
(NAPAs) and other national strategies and work in 11 pilot countries and regions. It is aligned with, and maintains links to, the Adaptation Fund established under the
Kyoto Protocol
The Kyoto Protocol was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that (part ...
.
The Scaling-Up Renewable Energy Program (SREP) in Low Income Countries, approved in May 2009, is aimed at demonstrating the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy.
When it Comes to Climate Investment Funds, Diverse Management is Imperative
/ref>
The Forest Investment Program (FIP), approved in May 2009, aims to support developing countries' efforts to reduce emissions from deforestation and forest degradation by providing bridge financing for readiness reforms and public and private investments. It will finance efforts to address the underlying causes of deforestation and forest degradation and overcome barriers that have hindered past efforts to do so.
See also
* International Renewable Energy Agency
The International Renewable Energy Agency (IRENA) is an intergovernmental organization mandated to facilitate cooperation, advance knowledge, and promote the adoption and sustainable use of renewable energy. It is the first international organis ...
* Investment in renewable energy
References
{{Reflist
External links
Climate Funds Update - Information on international funding initiatives to tackle climate change
Proposed Climate Investment Funds (CIF)
(World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
).
CGDEV Statement Before The Subcommittee
Environment Matters
World Bank
Economics and climate change