The Climate Investment Funds (CIF) is a multilateral fund that accelerates climate action in over 70 developing countries. CIF deploys highly concessional finance to empower transformations in clean energy, resilience, nature-based solutions, and other areas.
Founded in 2008, CIF is the only multilateral climate fund to work exclusively with multilateral development banks (MDB) as implementing agencies; 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 supports the deployment and testing of climate resilience and adaptation projects, meeting the need for critical climate interventions around the world.
The Clean Technology Fund
The bulk of CIF-IFC investments are through the Clean Technology Fund (CTF) window. CTF’s objective is to invest in projects and programs 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:
- project sponsors (e.g. developers of clean technologies or large companies implementing new technologies);
- investors in climate mitigating projects (banks, pension and equity funds, insurance companies, etc.); and
- 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.
The 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. Second, 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 in developing countries that have the ability to become commercially viable, and support efforts towards a low-carbon future.