CIF Meeting Approves Support to Eight Countries to Address Climate Change
4 November 2011: The Climate Investment Funds (CIF) approved US$1.08 billion in near-zero-interest loans and grants to support Bolivia, Honduras, India, Jamaica, Lao PDR, Mali, Mexico and Nepal in their efforts to mitigate and adapt to climate change.
The CIF Committees and Trust Fund Committee meeting, held in Washington DC, from 31 October-4 November 2011, addressed different project proposals. Under the CIFs' Clean Technology Fund (CTF), a US$775 million investment plan by India to launch its Super-Efficient Equipment Program (SEEP) Initiative was endorsed. The Initiative aims to: monetize energy savings to encourage consumers to buy high efficiency fans; enhance the cost-effectiveness of improvements in energy efficiency in large industries and facilities; and lower the cost of financing and facilitating technology transfer in the establishment of solar parks. The support will also help spur renewable hydropower development.
During the week-long meeting of countries participating in the CIFs, seven other countries' plans were endorsed to receive US$311 million in climate finance.
Under CIF's Pilot Program for Climate Resilience (PPCR), Bolivia will receive US$86 million for multipurpose water resources projects in El Alto and La Paz and to strengthen the climate change resilience of the Rio Grande Basin. Jamaica will receive US$25 million to improve the national risk information platform, data collection and management systems, and raise awareness about the risks of climate change.
Under the CIF's Scaling Up Renewable Energy Program (SREP), three new investment plans were endorsed: US$30 million for Honduras to create an enabling environment for scaling-up grid-connected, renewable energy and for providing off-grid energy services in rural areas; US$40 million, endorsed in principle, for Mali to scale-up solar PV, mini-hydro, and biofuel technologies with a focus on electricity production and productive energy uses for women and men; and US$40 million for Nepal to scale-up small hydropower and increase rural electricity access using renewable energy.
Under the CIF's Forest Investment Program (FIP), two new investment plans were endorsed. US$30 million in grant funding was endorsed in principle for Lao PDR to address the drivers of deforestation and forest degradation by scaling-up participatory sustainable forest management in all state forest areas. And US$60 million in grant and credit funding was endorsed for Mexico to build capacity for sustainable forest landscapes management, create a dedicated financing line for low-carbon strategies in forest landscapes, and develop business administration and entrepreneurial skills for sound community-based enterprises to meet REDD+ (reducing emissions from deforestation and forest degradation in developing countries, as well as conservation, sustainable management of forests and enhancement of carbon stocks) targets.
The FIP also approved the design of a Dedicated Grant Mechanism for Indigenous Peoples and Local Communities, a mechanism expected to help enhance the capacity of indigenous peoples and local communities to participate fully, effectively and continuously in FIP pilot country REDD+ activities. A global component will focus on knowledge management bringing together indigenous peoples groups and local communities from FIP pilot and other countries to exchange good practices and lessons learned on how to effectively address REDD+.
The US$6.5 billion Climate Investment Funds are a global partnership of the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IDB), and the World Bank Group. [CIF Press Release] [IISD RS Sources]