This week’s first-ever CIF Partnership Forum must ensure that new Clean Technology Funds will help developing countries quickly transition to zero-carbon technologies.
Climate change will take center stage at this week’s Annual Meetings of the World Bank group and the IMF, as the Board of Governors approve the Bank’s Strategic Framework for Climate Change and Development (SFCCD). Ten countries so far have pledged almost $6.1 billion towards the Climate Investment Funds (CIFs):
Pledging Meeting for Climate Investment Funds - September 26, 2008 Donor CIF Contributions
Australia 127 France 300 Germany 813 Japan 1,200 Netherlands 50 Sweden 92 Switzerland 20 United Kingdom 1,488 United States 2,000 Other 50 Total Pledges 6,141 Additional Co-Financing (bi-lateral funding) France 200 Germany 74 *All pledges are subject to approval by the relevant parliamentary or federal authorities. Contributions calculated using exchange rates as of September 25, 2008
The CIFs are being established by the World Bank jointly with the Regional Development Banks (AfDB, AsDB, EBRD, and IDB) to promote international cooperation on climate change and support progress towards the future of the climate change regime. The CIFs include the Clean Technology Fund (CTF), designed to scale up the deployment and transfer of clean energy technologies, and the Strategic Climate Fund (SCF), aimed at supporting national activities to build climate resilience in developing countries.
The first CIF Partnership Forum convenes this week where stakeholders from donor and recipient countries, MDBs, UN and UN agencies, NGOs and the private sector begin to map out the strategic directions, results and impacts of these funds.
Funding to support developing countries to address climate change is urgently needed. However, compared to the trillions of dollars of investment needed in the energy sector in developing countries, 6.1 billion dollars is a small sum of money. It is vital that the Clean Technology Funds are used to help developing countries make rapid shifts away from the use of carbon-intensive fuels, and adopt zero carbon technologies. Resources should not be used to support technologies such as supercritical coal—which is already more cost effective than conventional coal—and only marginally less carbon intensive.
Donor governments must therefore ensure that the Climate Investment Funds, in particular the Clean Technology Fund, are governed in accordance with the following principles: