A WORLD-LEADING MULTILATERAL CLIMATE FUND

A LEARNING LABORATORY A PIONEERING FUND

y A WORLD-LEADING MULTILATERAL CLIMATE FUND supporting low-carbon and resilient development in 72 countries

y A LEARNING LABORATORY with more than ten years’ experience on the cutting edge of climate finance innovation

y A PIONEERING FUND providing large-scale, low-cost, and long-term financing to accelerate global investment in next generation climate-smart technologies and transformational climate action

WHAT IS CIF?

$8 B DONOR CONTRIBUTIONS

$6.4 B$60 B

CO-FINANCING

72 COUNTRIESCLIMATE-SMART INVESTMENTS IN

UNDER IMPLEMENTATION

75% 25%PUBLIC SECTOR PRIVATE SECTOR

$60 B

$17 B MULTILATERAL DEVELOPMENT BANKS

$16 B BILATERAL AND OTHERS

$19 B PRIVATE SECTOR

$8 B GOVERNMENT

CIF INVESTMENTS

LEVERAGE RATIO1:9.4

CIF CO-FINANCING

AT A GLANCE

CIF projects have directly contributed to ten UN Sustainable Development Goals. CIF projects deliver benefits that go beyond climate mitigation and adaptation.

CIF projects have successfully unlocked over $60 billion in co-financing from multilateral development banks, the private sector, and other sources in support of SDGs.

100%

11.3%

1.1%

100%

11.6%

71.8%

66.7%

5.2%

45.1%

8.2%

$6.13* B

$693 M

$6.13 B

$501 M

$70 M

$4.4 B

$714 M

$6.13 B

$2.8 B

$321 M

$4.1 B

UNDER IMPLEMENTATION

CIF AND THE SDGs

100%

11.3%

1.1%

100%

11.6%

71.8%

66.7%

5.2%

45.1%

8.2%

$6.13* B

$693 M

$6.13 B

$501 M

$70 M

$4.4 B

$714 M

$6.13 B

$2.8 B

$321 M

$4.1 B

UNDER IMPLEMENTATION

* Pictured here is the level of CIF investments contributing to achieving ten Sustainable Development Goals. Data as of December 31, 2018.

GLOBAL IMPACT

DONOR COUNTRIES include Australia, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

CLEAN TECHNOLOGIES

CLIMATE RESILIENCE

ENERGY ACCESS

SUSTAINABLE FORESTS

26 GIGAWATTS IN CLEAN POWER CAPACITY WORLDWIDE more than the total energy output of Austria

BROADER ENERGY ACCESS FOR 8.7 MILLION PEOPLEequivalent to the population of Switzerland or Sierra Leone

STRENGTHENED CAPACITY OF 45.2 MILLION PEOPLEto cope with climate change, which exceeds the population of Poland or Argentina

11,000 GIGAWATT-HOURS OF ENERGY SAVED comparable to the total electricity production of Ghana

30 MILLION HECTARES OF SUSTAINABLE FORESTS an area the size of Philippines

CIF RESULTS

TRANSFORMATION Transforming institutions, markets, and systems is key to fighting the climate crisis—and it’s how we do business.

CIF offers a common financing platform and significant funding that is low-cost, long-term, and conducive to lowering risk. This approach unites diverse government, business, civil society, and development partners around a singular vision for joint investments proven to bring lasting, structural change to developing countries.

IMPLEMENTING PARTNERS

$1.2 B OF CIF INVESTMENT IN CLIMATE RESILIENCECIF supports developing countries and regions in building resilience to the impacts of climate change. In Niger, CIF has supported a range of resilience-building initiatives, including investments in over 140 hydrometeorological stations for improved weather forecasting and private sector-led, solar-powered drip irrigation systems. CIF support has also helped Niger integrate climate resilience into development planning in 38 communes. The country now has the tools to scale this effort across all of Niger’s 266 communes.

MAINSTREAMING CLIMATE CHANGE IN COMMUNAL DEVELOPMENT PLANS IN NIGER

$5.4 B OF CIF INVESTMENT IN CLEAN TECHNOLOGIESCIF empowers transformation in developing countries by providing resources to scale up low-carbon technologies with significant potential for preventing long-term greenhouse gas emissions.In Mexico, over $100 million in CIF concessional financing—including $45 million benefiting two of the country’s earliest plants—helped expand the country’s fledgling wind market when investment was needed most.This financing has directly led to over 1,000 megawatts of new wind capacity and a self-sustaining national industry that has grown to be worth $11.8 billion. According to BloombergNEF, CIF support in Mexico was instrumental in establishing the Mexican wind market, virtually from scratch.

MARKET ACCELERATION IN MEXICO WIND POWER

$45 M $11.8 B2009 2011 2017

3.3 GW non CIF-supported

1 GW CIF-supported

New wind capacity commissioned

CIF investment 70% private sector

CAPACITY INSTALLEDCAPACITY INSTALLED

2012 2016 2017

CIF pilot tested

TARGET

NUMB

ER O

F COM

MUNA

L PLA

NS

Government uptake

18738

266

$740 MOF CIF INVESTMENT IN SUSTAINABLE FORESTSCIF empowers developing countries to sustainably manage natural resources through investments that address the drivers of deforestation and forest degradation. Ghana produces 21% of the world’s cocoa, but it comes with a cost: cocoa farming accounts for half of Ghana’s deforestation. CIF is investing $75.5 million to support Ghana’s efforts to reverse this trend, enabling climate-smart innovations in cocoa and tree planting. This has helped reforest the target area at an annual rate of 1.19% in 2017, a dramatic reversal for a location that had suffered annual deforestation of 1.5% three years prior.

OPEN FORESTS IN CIF-SUPPORTED AREAS IN GHANA

$752 M OF CIF INVESTMENT IN ENERGY ACCESSCIF supports scaled-up deployment of renewable energy solutions like solar, geothermal, and biomass to increase energy access.In the Maldives, where fossil fuel imports account for 20% of national GDP, CIF is investing $12.7 million to introduce hybrid solar mini-grid systems across 160 small and medium islands. This is strengthening energy security, lowering the cost of electricity, and saving up to 28% in fuel. In parallel, this effort is fostering economic opportunity through job creation and small business development. Quality of life is also improving, with lower rates of noise pollution and better air quality.

CLEAN ENERGY ACCESS IN MALDIVES

2017 2018

39,9390

Number of beneficiaries of new hybrid mini-grid systemssupported by CIF 30,820

PHASE 1 TARGET

2014

2017

-1,5%

+1,19%

RATE

OF F

ORES

T GA

IN

OUR SHARED CLIMATE FUTURE WILL BE MADE IN DEVELOPING COUNTRIES, where some of the best opportunities await to advance a low-carbon world. In the years to come, Africa, Latin America, and Asia will see expanded investments in infrastructure and industry amid rapid population growth and economic development. Up against the climate crisis, however, it is vital that these investment decisions are made in the best interest of future generations and our planet. This is good for communities and good for economies: over its lifetime, resilient infrastructure in these nations could generate $4.2 trillion in global economic benefits.

FOR MORE THAN TEN YEARS, CIF HAS HELPED DEVELOPING COUNTRIES PUT LOW-CARBON DEVELOPMENT AT THE HEART OF THEIR GROWTH STRATEGY. CIF financing mobilizes key partners—governments, businesses, local communities, and development organizations—to support investments in renewable energy, sustainable forestry, and resilience in over 70 countries. This has resulted in more than 300 climate-smart investments worldwide, including the world’s largest concentrated solar power plant in Morocco, the first fleet of hybrid city buses in South America, a network of weather-resilient roads in flood-prone Mozambique, and the first real-time weather stations in the Caribbean.

A ROADMAP FOR CHANGE

CIF IS UNIQUELY POSITIONED TO BUILD ON ITS SUCCESSFUL TRACK RECORD TO UNLOCK EVER-GREATER AMBITION AND INVESTMENT IN CLIMATE ACTION. Looking ahead, CIF is establishing new programs to address emerging priorities in the movement for a better climate future. These include energy storage technologies, renewable energy integration systems, sustainable landscapes, low-carbon industries, and climate- smart cities. Facing a narrowing window to act on climate, these are areas in need of breakthrough investments to ensure developing and developed countries alike can adequately address the challenge of our times.

The next decade of climate action will be critical. This is an important window of opportunity to build on the success of CIF’s business model to harness its assets, deliver on emerging global priorities, and push technological frontiers further and faster.

INTEGRATION OF RENEWABLE ENERGYTo meet our climate goals, the share of renewables in the power mix needs to rise from one-quarter of total generation in 2018 to two-thirds in 2040. It is increasingly apparent that if countries cannot overcome challenges related to integrating additional renewable energy into power grids then further investment will likely be curtailed. Climate finance can address barriers to integration by unlocking pioneering investments in technologies, infrastructure, and markets.

LOW-CARBON AND CLIMATE-RESILIENT INDUSTRIES In less than a decade, industry could become the single biggest source of greenhouse gas emissions in high-emitting and hard-to-abate industries such as iron and steel, cement, petrochemicals and transport. To meet global climate goals, these sectors must make dramatic changes to rapidly decrease their energy usage, CO2 emissions, and vulnerabilities to the effects of climate change. Fostering the change needed will require targeted levels of concessional finance to help catalyze deep behavioral change toward greater manufacturing efficiency, maximized use of locally available resources, and optimized use of the materials by these industries.

LOOKING FORWARD

CLIMATE-SMART CITIES With the prospect of another 2.5 billion people set to move into urban areas by 2050, investing in sustainable urban development is now paramount to avoid carbon and climate vulnerability lock-in as cities rapidly expand. This is especially true for small to medium-size cities in developing countries where urban infrastructure is not yet locked in and where 60% of new urbanized land development is expected to take place through 2030. However, the lack of financial and technical resources could prevent these cities from setting a course toward a low-carbon and resilient future. Climate finance can provide the necessary support that city-level decision-makers need to develop and implement new urban development models that integrate climate considerations, while attracting the corresponding investment needed to implement these plans.

SUSTAINABLE LANDSCAPES Traditional sectoral approaches to addressing challenges related to agriculture, forestry and other land-use activities, which represent around 23% of total net emissions, have failed to create solutions that respond to complex and interconnected demands for food, livelihoods, land rights, finance, and progress towards development goals. The landscape approach moves away from narrow, sector-by-sector approaches towards a multi-sectoral “systems-level” integrated strategy reconciling competing uses of natural resources while addressing the climate challenge and achieving sustainable development. Scaled concessional capital that supports collaborative partnerships between development finance institutions, governments, private sector, and civil society will be key to addressing barriers to the sustainable use of land and natural resources and creating the essential enabling conditions for unlocking the estimated $300-400 billion of annual resources required to preserve natural capital.

@CIF_action

CIFaction

CIFaction

@CIF_action

CLIMATE INVESTMENT FUNDS 1818 H Street NW, Washington, D.C. 20433 USA

+1 (202) 458-1801

climateinvestmentfunds.org