Climate finance Climate Investment Funds (CIF)

    Logo: Climate Investment Funds, CIF

    The CIF, the Climate Investment Funds, was launched by nine donor countries and six multilateral development banks in 2008 upon the initiative of the G8 and G20. The Creen Climate Fund (GCF), Global Environment Facility (GEF) and CIF are the world’s largest multilateral climate funds.

    The purpose of CIF is to finance comprehensive measures for climate change mitigation and adaptation in developing and emerging economies. Financing gaps are to be closed and innovative solutions piloted. Unlike other climate funds, CIF works exclusively with multilateral development banks as implementing partners.

    CIF comprises two funds: the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF).

    Clean Technology Fund (CTF)

    CTF assists middle-income countries in introducing climate-friendly technologies harbouring great potential for emissions reduction.

    Among other things, the Fund supports the expansion of renewable energy generation, energy efficiency improvement, climate-friendly transport, energy storage technologies, industry decarbonisation and the socially equitable phase-out of coal (just transition). The Accelerating Coal Transition (ACT) investment programme supports countries' efforts for an ambitious and socially just exit from coal-based energy generation. It is an important financing mechanism for the Just Energy Transition Partnerships (JETPs) with Indonesia and South Africa.

    Strategic Climate Fund (SCF)

    SCF supports programmes that tackle specific climate change challenges or involve responses that focus on specific industries or communities. The programmes are geared towards piloting long-term approaches, especially in low-income countries, to strengthen, for example, forest conservation, nature-based solutions and the use of renewable energy. The Dedicated Grant Mechanism (DGM) provides direct grant support for climate action undertaken by Indigenous Peoples and Local Communities (IPLC).

    CIF projects to date have helped save more than 39.6 billion tonnes CO2 equivalent emissions. In the field of sustainable land management, CIF has already helped to place over 37 million hectares of land under sustainable forest or agricultural management. It has also supported the installation of over 23 gigawatts of renewable energy capacity and facilitated energy access for 3.1 million people.

    Through its targeted programmes, CIF has supported more than 360 projects in 82 countries so far. Since CIF's establishment, 15 countries have contributed over 12 billion US dollars. Germany has contributed a total of 1.04 billion euros.

    As at: 19/06/2024