Climate Investment Funds Unveils New Facility, Evidence of Transformational Change at Ten-Year Anniv
Categories: HEADLINES, Environment & Bio-diversity
The announcements were made this week at the Climate Investment Funds (CIF) “The Power of 10: Shaping the Future of Climate Action” event at the Noor Ouarzazate Concentrated Solar Power Plant - the largest facility of its kind in the world - in Morocco. The summit convened over 300 climate leaders from the public and private sectors for action-oriented dialogue on fighting climate change.
Technical Assistance Facility for Clean Energy Investment
A highlight of the event was the surprise announcement of the new Technical Assistance Facility for Clean Energy Investment, with an initial investment of $15 million from the government of Denmark.
The Facility, established within CIF, will focus on technical support for establishing investment-friendly regulatory environments and other investment conditions for renewable energy and energy efficiency, including by increasing predictability and security for investors, thereby enabling accelerated scale-up of investments at lower costs of capital.
The key objective is to assist countries, working closely with multilateral development banks (MDBs), in accelerating investments and market development of clean energy to support their low carbon transformation. The Facility will be launched with the initial contribution, and is open to additional funding contributions from other donors.
CIF launched three highly anticipated reports at the event: two Transformational Change Reports assessing the effectiveness of CIF’s unique approach: independent evaluation and evidence synthesis; and A Learning Review of the Dedicated Grant Mechanism (DGM) for Indigenous Peoples and Local Communities in the Forest Investment Program (FIP).
The new independent Transformational Change reports find the USD 8 billion Climate Investment Funds (CIF) is unique among climate finance institutions and drives fundamental change in how countries tackle climate change. These studies, undertaken by the global consulting firm Itad and leading think tank Overseas Development Institute, respectively—conclude that CIF’s transformational impact derives from the following factors:
A country-led approach that aligns investment to national priorities
Explicit consideration of barriers to systems-level change at the design phase
Large-scale investments using concessional finance
Unifying multilateral development banks (MDBs) behind a common investment program
Flexibility and predictability of funding
“CIF has consistently taken a deliberate, collaborative and systems-level approach to the delivery of climate finance,” says Mafalda Duarte, Head of CIF. “We have learned which interventions and approaches are most impactful, gaining insights that not only strengthen our own work, but hold lessons for the wider climate finance community.”
The independent review of DGM and FIP says that the Climate Investment Funds is enabling forest-dependent communities to lead on the decisions that most impact them, by providing grants that empower Indigenous Peoples and Local Communities to set priorities, design projects, and implement community-led projects aimed at managing their natural environment.
“We believe that the DGM is a model that works because it includes Indigenous Peoples in the design and implementation – they own the process, so there is greater trust built in the system overall,” says Mafalda Duarte, Head of CIF. “As the largest REDD+ initiative created by and for Indigenous Peoples, the DGM is a one-of-a-kind mechanism. There is already clear evidence that this approach is effective and will continue to yield results for these communities in concert with efforts underway to secure the future of our forests.”