Established in 2008, the Climate Investment Funds (CIF) is a multilateral climate fund that enables climate action in over 70 low and middle income countries. CIF deploys highly concessional finance to empower transformations in clean technology, energy access, climate resilience, nature-based solutions, and other areas.
A core strength of CIF’s business model is its flexible, country-led programmatic approach and multilateral development bank (MDB) partnership model. CIF is the only multilateral climate fund to work exclusively with MDBs as implementing entities - IFC is one of six MDBs that can access CIF funds to implement projects. Through its blended finance practice, IFC co-invests concessional funding provided by CIF alongside its own funds. The CIF-IFC blended finance partnership is focused on responding to the growing demand for climate change solutions and supporting the deployment and testing of climate mitigation and adaptation projects through the private sector, meeting the need for critical climate interventions around the world.
CIF comprises two umbrella funds, namely, the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF).
Priority Areas
Clean Technology Fund
CTF supports projects and programs within the renewable energy, energy efficiency, and clean transport sectors, as well as other emerging clean technology, with high GHG abatement opportunities at the country, regional or sub-regional levels. CTF funds are expected to target three types of private sector players:
1. project sponsors (e.g. developers of clean technologies or large companies implementing new technologies);
2. investors in climate mitigating projects (banks, pension and equity funds, insurance companies, etc.); and
3. financial intermediaries developing new lines of credit for climate change investments (banks, leasing companies, ESCOs, etc.)
The pricing and terms of CTF funds offered to private sector clients are structured on a case-by-case basis to address the specific barriers identified in each project. A full spectrum of financing instruments is available, ranging from blended concessional finance to advisory/technical services.
Strategic Climate Fund
SCF provides financing to pilot innovative approaches and to scale-up activities aimed at specific climate change challenges or sectoral responses. The fund serves as an overarching framework that provides financing through several programs, namely Scaling up Renewable Energy Program, Forestry Investment Program, Pilot Program for Climate Resilience, Renewable Energy Integration Program, Nature, People and Climate Program, Industry Decarbonization Program, and Smart Cities Program.
SCF Program Snapshot: Pilot Program for Climate Resilience
The Pilot Program for Climate Resilience (PPCR) supports developing countries and regions in building their adaptation and resilience to the impacts of climate change. First, PPCR assists governments in integrating climate resilience into strategic development planning across sectors and stakeholder groups. Secondly, it provides concessional and grant funding to put the plans into action and pilot innovative public and private sector solutions. A prime example, in 2018 IFC invested PPCR funds – in addition to CTF funds -- into a private sector company to develop a first-of-its kind solar power plant in rural areas in Mozambique. Mocuba Solar exemplifies the best of IFC and CIF’s blended concessional finance partnership: facilitating pioneering projects that have the ability to become commercially viable in developing countries, and supporting efforts towards a low-carbon future.
Featured Projects:
- Kaxu Solar, First Large-Scale Concentrated Solar Power Plant in South Africa
- Solar Power Company Group, Transforming Thailand’s Renewable Energy Capacity
- Kairouan Solar, First Large-Scale Privately Financed Solar Project in Tunisia
- OTP Leasing, Boosting Access to Green Finance in Ukraine
- responsAbility Energy II, Access to Clean Power Fund
- Niger Irrigation Program, Creating Markets for Irrigation Technology in Niger
