1 July 2008: The
World Bank’s Board of Executive Directors, meeting on 1 July 2008, approved two
Climate Investment Funds (CIFs) following an extensive public consultation
process that culminated with an agreement on the CIFs by 40 developing and
industrialized countries in Potsdam, Germany, on 21-22 May 2008. The establishment of the CIFs was also endorsed by
the G8 Finance Ministers who met in
Osaka, Japan, in June 2008.

The CIFs are expected to raise US$5 billion from donors and scale up
public and private finance for the deployment of clean technologies, the
prevention of deforestation and development of climate resilient economies in
developing countries. World Bank President Robert Zoellick stated,
“We think the CIFs will have a
significant impact in generating even more financing for climate action but
also in demonstrating new approaches to address the current and future effects
of climate change. These approaches will range from agriculture to water
management, from transport to urban development, and from biodiversity to
energy access.” The World Bank has expressed that
developing countries will have an equal voice in the Funds’ governance structures,
and decisions on the use of funds will be made by consensus. An Annual
Partnership Forum will also be held to provide a venue for talks on the
strategic directions, results and impacts of the CIFs, the first meeting of
which will take place in September 2008, with initial project or programme approval expected by the end of 2008. [World Bank CIFs webpage]