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Climate Investment Funds Help Countries Reshape Citizens’ Energy Access and Battle Climate Change

 Source: Climate Investment Funds (CIF) YouTube Channel

November 19, 2010

Twenty developing countries to receive funding for rebalancing national energy portfolios and improving their citizens’ energy access by investing in renewable energy sources – sun, wind and geothermal » Three developing countries to receive grants for piloting climate resilient strategies » Global forest initiatives enhance collaboration with forest-rich developing countries.

"As we turn our eyes toward Cancun, it would serve us well to take careful account of the actions – and the new leadership – emerging in developing countries on climate-smart development" || Andrew Steer, Special Envoy, Climate Change, The World Bank

At the recent Climate Investment Funds (CIF) Trust Fund Meetings, held at the World Bank last week, member governments offered strong support to a broad spectrum of developing countries engaged in work to radically revamp their energy sectors, increase resilience to climate impacts, and deepen sustainability of their forests and related ecosystems. With this enhanced support – only weeks before the global climate negotiating session in Cancun – the message is clear that developing countries are setting the trend toward climate-smart development.

Twenty developing countries will use renewable energy to reshape citizens’ energy access

CLIMATE INVESTMENT FUNDS || The Climate Investment Funds (CIF), approved by the World Bank’s Board of Directors on July 1, 2008, are a collaborative effort among the Multilateral Development Banks (MDBs) and countries to bridge the financing and learning gap between now and a post-2012 global climate change agreement. Designed through extensive consultations, the CIF are governed by balanced representation of donors and recipient countries, with active observers from the UN, GEF, civil society, indigenous peoples and the private sector.

With support from the Clean Technology Fund (CTF), fourteen middle income countries -- Algeria, Egypt, Indonesia, Jordan, Kazakhstan, Mexico, Morocco, Philippines, South Africa, Thailand, Tunisia, Turkey, Ukraine, and Vietnam -- plan to use renewables at a large scale in their energy strategies.

In addition, six low income countries – Ethiopia, Honduras, Kenya, Maldives, Mali, and Nepal – intend to invest in renewable energy services as a means to grow their citizens’ often badly-needed energy access and leapfrog into climate-friendly development, with support from the Scaling Up Renewable Energy Program in Low Income Countries (SREP).

Grants help three countries battle climate change

Additionally, at the CIF meetings Bangladesh, Niger, and Tajikistan —three countries highly vulnerable to climate change impacts – presented and received endorsement for their sweeping national-level investment plans to pilot climate resilience strategies and integrate climate risk into their economic plans. The countries are the first to bring national investment plans forward for endorsement by the Pilot Program for Climate Resilience (PPCR), through which six other countries and two regions are preparing similar plans.

In Bangladesh the $50 million in CIF grants and another $60 million in concessional loans will support one of the country’s top priorities: protecting people and land in low-lying coastal regions.

Tajikistan’s $50 million in grants will be used to prepare for changing weather patterns. The country was found in a 2009 World Bank study to be most climate-vulnerable country in the region and one of the least able to adapt. Glaciers melting and the risk of drought and flooding are projected to increase in coming decades.

Niger's $50 million grant and an additional $60 million in concessional financing will support projects and programs to improve climate resilience and food security, with special focus on gender and the most vulnerable groups.

Global Forest Initiatives enhance collaboration with forest-rich developing countries: major REDD+ initiatives meet in first-time gathering

THE CIF FUNDS ||  The CIF comprises two Trust Funds, each with a specific scope and objective and its own governance structure.

The CLEAN TECHNOLOGY FUND (CTF) promotes investments to initiate a shift towards clean technologies. Through the CTF, countries, the MDBs, and other partners agree upon country investment plans for programs that contribute to the demonstration, deployment and transfer of low carbon technologies with significant potential for greenhouse gas emissions savings.

Geothermal Energy - Turkey

The STRATEGIC CLIMATE FUND (SCF) serves as an overarching fund to support targeted programs with dedicated funding to pilot new approaches with potential for scaled-up, transformational action aimed at a specific climate change challenge or sectoral response.

Wind Energy - Turkey

Targeted programs under the SCF include: a. The Forest Investment Program (FIP); b. The Pilot Program for Climate Resilience (PPCR); and c. The Program for Scaling-Up Renewable Energy in Low Income Countries (SREP)  

In recognition of the urgent need to accelerate and improve international support for the world’s tropical forests, the governing bodies of the Forest Carbon Partnership Facility (FCPF), Forest Investment Program (FIP) and UN-REDD Programme – three of the largest global initiatives helping developing countries to reduce greenhouse gas emissions from deforestation and forest degradation (REDD+) – met in Washington, D.C. in the margins of the Climate Investment Funds governing body meetings.

The gathering of representatives from 31 countries (both developing and industrialized) and a wide range of forest stakeholders, emphasized the continued work required to support forested developing countries in their efforts toward climate-smart and sustainable management of forests and low-carbon emissions development.

To date, 48 forest-rich, developing countries are collaborating with at least one of these three initiatives, which at times may subject countries to multiple but similar processing requirements. To streamline their support to these countries, the FCPF, FIP and UN-REDD Programme came together at this first joint meeting to advance a common approach for REDD+ assistance centered on individual country-led strategies and the phased approach to REDD+ supported by the UN Framework Convention on Climate Change (UNFCCC).

All of these actions signal a growing momentum toward real climate action on the ground. “This is a potent commitment to climate action,” stated Andrew Steer, World Bank Climate Change Envoy and co-chair of the $1.9 billion Strategic Climate Fund, the second primary CIF fund. “These countries are creating a badly needed global trend which could reshape national and global markets, policies and institutions. As we turn our eyes toward Cancun, it would serve us well to take careful account of the actions – and the new leadership – emerging in developing countries on climate-smart development.”

Additional Resources

Contributed by Karolina Ordon, Communications Officer, Sustainable Development

Last updated: 2010-11-19

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