The Climate Investment Fund, one of the world’s largest multilateral climate change funds, has announced up to $1 billion in funding as part of CIF’s Industrial Decarbonization Investment Program.
In a statement last Thursday, CIF announced that it has also opened a call for expressions of interest for developing countries to participate in this first-of-its-kind program.
The Industrial Decarbonization Investment Program provides unprecedented private sector engagement, encouraging businesses, governments and multilateral development banks to work together to decarbonize heavy-emitting sectors and achieve climate goals. the report said.
The industrial sector currently accounts for a quarter of global greenhouse gas emissions, and this figure is rapidly increasing, the statement said.
The report noted that developing countries depend on industrial production for economic growth.
Citing one example, he said global demand for aluminum is expected to increase by 80% by 2050.
It added that the need for cement and steel is also increasing, particularly to support the transition to renewable energy.
Note that CIF’s Industrial Decarbonization Program will invest in developing low-carbon pathways in these sectors to reduce the climate impact of heavy-emitting industries.
The program fosters innovation, provides proof of concept for new technologies, and promotes a just transition.
CIF’s predictable and flexible concessional financing is deployed through partner multilateral development banks.
To ensure seamless public-private collaboration, private sector activities will be integrated into a larger programmatic approach from the outset.
Governments are encouraged to work closely with private sector actors and, in a first for CIF, may also choose to submit expressions of interest jointly with private sector organizations.
The industrial decarbonization program includes securing a dedicated private sector. Up to 100 percent of the total funding can be allocated to projects led by the private sector or with significant co-investment by the private sector. The minimum allocation is 50 percent.
The Industrial Decarbonization Program will deploy ambitious social safeguards in line with CIF’s Just Transition Principles, ensuring that the workforce is broadly engaged in the process and that green employment opportunities are inclusive. Masu.
The investment plan will facilitate adaptation measures, employment promotion and worker training.
Additionally, project designs should analyze gender gaps and barriers faced by women and other marginalized groups, and include specific actions to address them and indicators to monitor progress.
CIF’s Industrial Decarbonization Investment Program is part of the $8.6 billion Clean Technology Fund.
Expressions of interest received will be assessed by an independent expert panel and recommendations will be submitted to the Clean Technology Fund Trust Fund Committee.
Selected countries will be invited to develop investment plans, planning strategically linked investments unified by an innovative vision.
“The future depends on decarbonizing heavy-emitting sectors. To meet climate change targets, industrial emissions need to fall by 20% by 2030 and 93% by 2050.
“Importantly, industrial decarbonization and green supply chain jobs can drive a just and prosperous transition. This will accelerate future technologies to solve our biggest climate challenges.” This is what CIF was created to do,” said Tarye Gbadegesin, CEO of the Climate Investment Fund.
He said the industry decarbonization program would involve up to $1 billion in concessions to invest alongside multilateral development banks, governments and forward-thinking companies keen to innovate and test new solutions to green the industry. It is expected that additional funds will be made available.
Bruno Carrasco, Director of Climate Change and Sustainable Development at the Asian Development Bank (ADB), said the Asia-Pacific region accounts for more than half of the world’s greenhouse gas emissions, and ADB is playing a vital role in driving the transition. He said he could play a role. Contribute to cleaner energy systems and decarbonization of sectors that are difficult to reduce.
“The launch of CIF’s Industrial Decarbonization Program has the potential to significantly strengthen our efforts to promote a prosperous, inclusive, resilient and sustainable future for the Asia-Pacific region.
“Through this program, we will drive a transformative, low-carbon national pathway that puts the region at the forefront of global decarbonization efforts,” he added.
Demetrios Papathanasiou, World Bank Global Director, Energy and Extraction, said the World Bank is committed to tackling the important challenge of industrial decarbonization to reduce emissions in this difficult-to-reduce sector of the economy. The company said it is expanding its support to client countries. Growth, competitiveness and job creation.
“The new Climate Investment Fund Industrial Decarbonization Program will provide essential concessional finance to help countries meet their development and climate goals and foster private sector investment,” he added. Ta.
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