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Climate Investment Funds (CIF)
With $11.1 billion pledged, the Climate Investment Funds (CIF) is one of the largest active climate finance mechanisms in the world.
CIF has invested in almost 400 projects in 72 low- and middle-income countries. CIF accelerates climate action by empowering transformation through programs in the areas of clean technology, energy access, climate resilience, and sustainable forests in middle- and low-income countries.
Established in 2008, CIF works exclusively through six multilateral development banks, including the African Development Bank, to mobilize investments to pilot and scale cutting-edge climate solutions to address frontier climate challenges.
As an Implementing Entity of the CIF, the African Development Bank has supported the development of 39 investment plans across 27 African countries to unlock climate action. As of end-December 2022, the African Development Bank had approved 34 projects for which it has deployed $946 million in CIF resources in addition to $1.99 billion of its own co-financing.
The CIF has four key programs:
- The Clean Technology Fund (CTF) promotes scaled-up financing for demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings
- Forest Investment Program (FIP) supports sustainable forest management and
reforestation activities, in line with the framework to guide activities in the forest sector that reduces emissions from deforestation and forest degradation, as well as the sustainable management of forests and the conservation and enhancement of forest carbon stocks in developing countries (REDD+) objectives - Pilot Program Climate Resilience (PPCR) pilots and demonstrates ways in which climate risk and resilience may be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change
- The Scaling Up Renewable Energy Program (SREP) scales up the deployment of renewable energy solutions and expand renewable energy markets in the world’s poorest countries
CIF’s large-scale and long-term financing lowers the risks and costs of climate financing. It enables the testing of new business models, builds a track record in unproven markets, and boosts investor confidence to unlock additional sources of finance. Building on its success, CIF has launched new programs that focus on accelerating transitions away from the use of coal, renewable energy integration, industry decarbonization, and the development of climate-smart cities:
The Accelerating Coal Transition Investment Program is a holistic toolkit to support countries transitioning away from coal, tackling challenges linked to national strategies, people and communities, as well as land and infrastructure.
Integration of Renewable Energy into Power Systems is a program to support the integration of renewable energy into power systems through different flexible solutions.
The Industry Decarbonization Program is an initiative to catalyze deep behavior change and sustained impact in high-emitting industries in middle-income countries where the industrial sector constitutes a major and growing share of their overall emissions.
The Nature, People and Climate Investments
program will deploy concessional resources at scale to improve livelihoods and address climate change through the sustainable use of land and other natural resources.
Climate-Smart Urbanization
is a program to support cities in developing countries around the world to accelerate implementation of ambitious and transformative investments and policy actions that significantly contribute to transitioning to low-carbon and climate-resilient urbanization pathways.
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