Bank Participates in Design Meeting of Climate Investment Fund
The African Development Bank participated at the Design Meetings of the proposed Climate Investment Funds (CIF), hold at the World Bank Group (WBG) and Inter-American Development Bank headquarters in Washington, DC. The meetings took place from 10-15 April 2008.
The event began with consultation meetings held with developing country representatives, a group that is the intended recipient of the proposed CIF resources. These meetings are intended to give a general overview of the Funds and to bring potential recipient countries up to speed on progress, thus far, in efforts to establish the Funds.
Attendees included representatives from the World Bank Group, AsDB, and IADB, as well as Turkey, Albania, South Africa, Burkina Faso, Republic of Croatia, Mexico, Brazil, China and India.
The WBG Vice President for Sustainable Development, Kathy Sierra, made a presentation on the overview of the CIF, stating how it is a collaborative effort between the DFIs, namely AfDB, AsDB, EBRD, IADB and the WBG (as the lead agency and Trustee). She described the Clean Technology Fund, as well as the Strategic Climate Fund (encompasses broader Funds including the CTF, the Climate Resilience Pilot Program, as well as the possible Forestry Fund), and explained the motivations for driving the initiative as building on others such as the UK Environmental Transformational Fund, the US CTF, as well as Japan’s Cool Earth 50.
The overall aim of the Funds is to provide an incentive for scale-up action and transformational change in the clean technology field (particularly reductions in GHG emissions); to promote international co-operation on climate change; and to provide experiences and lessons in the sector.
She also stressed the catalytic role that MDBs can play in driving these initiatives, which need to be part of the recipient country’s broader development strategy.
The Private Sector approach to utilizing CIF resources was the focus of the meetings held on Friday, 11th April. The IFC presented on behalf of the other MDBs (based on collective contributions from AfDB, IADB, AsDB and EBRD), ideas on the instruments that can be utilized to stimulate private sector investments in clean technology. Areas such as Geothermal, Wind and Solar Energy, Energy Efficiency, as well as financing Financial Intermediaries for on-lending to RE projects were covered. The main aim of private sector involvement would be to give a strong demonstration effect by facilitating transformational transactions that can be a good case for nation / continent – wide replication.