News

World Bank Board Approves Climate Investment Funds

World_bank

1 July 2008: The

World Bank's Board of Executive Directors, meeting on 1 July 2008, approved two

Climate Investment Funds (CIFs) following an extensive public consultation

process that culminated with an agreement on the CIFs by 40 developing and

industrialized countries in Potsdam, Germany, on 21-22 May 2008. The establishment of the CIFs was also endorsed by

the G8 Finance Ministers who met in

Osaka, Japan, in June 2008.

The CIFs are expected to raise US$5 billion from donors and scale up

public and private finance for the deployment of clean technologies, the

prevention of deforestation and development of climate resilient economies in

developing countries. World Bank President Robert Zoellick stated,

“We think the CIFs will have a

significant impact in generating even more financing for climate action but

also in demonstrating new approaches to address the current and future effects

of climate change. These approaches will range from agriculture to water

management, from transport to urban development, and from biodiversity to

energy access.” The World Bank has expressed that

developing countries will have an equal voice in the Funds' governance structures,

and decisions on the use of funds will be made by consensus. An Annual

Partnership Forum will also be held to provide a venue for talks on the

strategic directions, results and impacts of the CIFs, the first meeting of

which will take place in September 2008, with initial project or programme approval expected by the end of 2008. [World Bank CIFs webpage]