CIF Expands Investment Opportunities to 72 Countries
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Decisions taken during the semi-annual Climate Investment Funds (CIF) governing body meetings will bring the US$8.1 billion CIF to a total of 72 developing and middle-income countries in the areas of renewable energy, technology, sustainable forestry and climate resilience.

During the meetings, the CIF earmarked US$100 million to Ghana, Nicaragua and Haiti to help them develop their renewable energy markets.

CIF19 May 2015: Decisions taken during the semi-annual Climate Investment Funds (CIF) governing body meetings will bring the US$8.1 billion CIF to a total of 72 developing and middle-income countries in the areas of renewable energy, technology, sustainable forestry and climate resilience. During the meetings, the CIF earmarked US$100 million to Ghana, Nicaragua and Haiti to help them develop their renewable energy markets.

This investment, under the Scaling Up Renewable Energy in Low Income Countries (SREP), has the potential to increase clean energy access by one million people in Haiti and 400,000 in Nicaragua. It will provide access to modern energy services through renewable sources in Ghana to approximately 1,350 schools, 500 health centers and 400 communities in remote areas. These countries are the first of 14 new countries that joined SREP in 2014 to prepare investment plans for funding and to receive endorsements.

Another 25 countries are expected to receive CIF funding to develop investment plans for sustainable forestry under the Forest Investment Program (FIP) and climate resilience under the Pilot Program for Climate Resilience (PPCR). Nine African countries were chosen as pilot countries during the meetings: three for sustainable forests (the Republic of Congo, Cote d’Ivoire and Mozambique); and six for climate resilience (Ethiopia, Gambia, Madagascar, Malawi, Rwanda and Uganda). Pilot countries under the PPCR were selected based on an expert group’s evaluation regarding vulnerability, enabling environment and potential capacity for implementation. These countries can now begin working to define their national Strategic Programs for Climate Resilience (SPCR), which, according to the CIF, is “the foundational backbone of the PPCR.”

In total, the FIP will provide US$145 million to six new pilot countries, the Republic of Congo, Ecuador, Guatemala, Ivory Coast, Mozambique and Nepal, to prepare investment plans within two years. These countries will receive up to US$250,000 each to develop their investment plans, and up to US$139 million in additional funding will support programmes and projects under those plans. Another US$36 million will support implementation of the Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM). The FIP will also provide US$2.25 million for nine non-pilot countries to prepare investment plans, namely Tunisia, Bangladesh, Zambia, Cambodia, Cameroon, Guyana, Honduras, Rwanda and Uganda.

Despite these advances, the CIF is facing a funding shortage, although the UK and Norway made additional pledges in November 2014, enabling new pilot countries to pursue their renewable energy and sustainable forestry management goals. Significant funding is still required so that new PPCR and FIP countries can implement their projects once investment plans are in place. The Clean Technology Fund (CTF) is also facing a potential funding gap, which could hinder progress. However, the CIF notes that results from Mexico, Morocco and Turkey demonstrate that “the CTF is successfully scaling up the demonstration, deployment, and transfer of low carbon technologies by covering up-front costs and risks that other investors are reluctant to bear.”

The CIF governing bodies took these decisions during their semi-annual meetings held from 11-15 May 2015 in Washington, DC, US. The governing body sessions included meetings of: CTF Trust Fund Committee; the Strategic Climate Fund (SCF) Trust Fund Committee; and the Joint CTF/SCF Trust Fund Committee. Sub-Committee meetings of the SREP, FIP and PPCR also convened. [CIF Website] [CIF Press Release] [African Development Bank (AfDB) Press Release]

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