Click here for search results

Site Tool

Climate Investment Funds

Climate Investment Funds

The Climate Investment Funds (CIF) are unique financing instruments designed to initiate transformational change towards low-carbon and climate-resilient development through scaled-up financing channeled through the Multilateral Development Banks (MDBs). Recognizing that poverty reduction, economic growth and climate change must be addressed in tandem, the CIF were agreed in 2008 to open the opportunity for blending CIF funding with the funding from other MDBs and national and private sector development resources, thereby leveraging substantial additional funds.

The two CIF funds are the Clean Technology Fund (CTF), financing scaled-up demonstration, deployment and transfer of low-carbon technologies for significant greenhouse gas (GHG) reductions within country investment plans; and the Strategic Climate Fund (SCF), financing targeted programs in developing countries to pilot new climate or sectoral approaches.

The CIFs are implemented jointly by the MDBs: African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and World Bank Group. The World Bank serves the CIF in three capacities: (i) Trustee to administer the CTF and SCF Trust Funds, (ii) one of six Implementing Agencies to implement programs and projects financed by the CIF; and (iii) Administrative Unit to support the work of the CIF.

One of the unique elements of the CIF is that Contributors can provide funding to the Trust Funds in the form of grant or capital contributions, and additionally in the case of CTF, concessional loan contributions. Both funds are able to provide concessional loans, grants and guarantees, through one of six partner MDBs, to recipients. The MDBs are required to return reflows (principal repayment, interest, fees or any other reflow of funds) received from recipients to the Trust Funds.

CFPMI serves as Trustee for the CIF and as such is accountable to the CIF Trust Fund Committees for the performance of its fiduciary responsibilities. The Trustee provides a range of standard services in the administration of the CIF Trust Funds. These services include: (i) financial and risk management; (ii) cash flow management, (iii) investment management; (iv) donor and MDB relationship management as related to the financial transactions of the CIF Trust Funds; (v) provision of key financial information to the CIF Administrative Unit; (vi) accounting and reporting to the CIF Trust Fund Committees; (vii) commitments and cash transfers to the MDBs; and (viii) IT infrastructure for managing the Trust Funds.

 

The total amount pledged by 14 countries to the CIF Trust Funds (CTF and SCF) amounts to US$ eq. 6.5 billion.