Climate Investment Funds (CIF)

There is a consensus growing that moderating and managing climate change is central to many aspects of poverty reduction, economic growth and development and that climate change disproportionately affects the urban and rural poor worldwide. The United Nations Framework Convention on Climate Change (UNFCCC) recognizes the need for financial resources to be provided to developing countries to assist them in meeting the costs of mitigation and adaptation measures to respond to the challenge of climate change. 

Recognizing that UNFCCC deliberations on the future of the climate change regime are underway, including discussions on a future financial architecture and funding strategy for climate change, Multilateral Development Banks (MDBs) together with developed and developing countries and other stakeholders have developed the Climate Investment Funds (CIF) as an interim measure to scale up assistance to developing countries and strengthen the knowledge base in the development community.

On July 1, 2008, the World Bank Board of Executive Directors formally approved the creation of the Climate Investment Funds (CIF).O n September 26, 2008 donors gathered to pledge over US$6.1 billion.

The CIFs are managed by the World Bank and implemented jointly with the Regional Development Banks (the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development,and the Inter-American Development Bank).

The CIFs were established through an inclusive and consultative process in support of the Bali Action Plan.  They were designed on the basis of consultations with potential donors and recipients, the UN family, the Global Environment Facility (GEF), civil society organizations, and the private sector. The final design meeting took place in Potsdam, Germany on May 21-22, 2008. Click here to view the Design Process documentation.

As provided in the CIF design, an equal number of donors and recipient and donor countries hold seats on the decision making committees, as provided for in the CTF Governance Framework and the SCF Governance Framework under CIF Key Documents.