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- Climate Investment Funds (CIF) announces up to $1 billion in funding to support decarbonization in heavy-emitting industries.
- The Industry Decarbonization investment program invites developing countries to submit expressions of interest, promoting private and public sector collaboration.
- CIF aims to accelerate low-carbon pathways in sectors such as steel, cement, and aluminum, critical to the renewable energy transition.
Pioneering Global Decarbonization Efforts
During the Ministerial day of the 15th Clean Energy Ministerial (CEM15), the Climate Investment Funds, one of the world’s largest multilateral climate funds, announced a significant investment into decarbonizing heavy industries. The CIF’s Industry Decarbonization program will deploy up to $1 billion to innovate low-carbon technologies in sectors that are among the largest contributors to global emissions.
“The future depends on decarbonizing heavy emitting sectors. To meet our climate goals, we need industry’s emissions to decline by 20% by 2030 and 93% by 2050,” said Tariye Gbadegesin, CEO of Climate Investment Funds. “Crucially, industrial decarbonization and green supply chain jobs can drive a just and prosperous transition.“
Strategic Investments and Collaborative Actions
This program not only provides funding but also fosters collaboration among governments, private sector leaders, and multilateral development banks to ensure a cohesive approach to industrial decarbonization. This includes creating a virtual buying group among businesses to leverage collective buying power and integrate private sector activities from inception.
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Governments are encouraged to work closely with private sector counterparts and may submit joint expressions of interest with private companies. The program aims for at least 50% of the financing to support projects led by the private sector, promoting significant private co-investments.
Comprehensive Social Safeguards and Just Transition Principles
The CIF is committed to ensuring that the transition to low-carbon industrial practices is inclusive and equitable. The program’s investment plans will include measures to promote employment, provide training for workers, and address gender gaps and barriers faced by women and other marginalized groups.
“By promoting industry decarbonization now, we can chart a sustainable course that fuels economic growth, leading to low-carbon development and a net zero future,” noted Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank.
Global Support and Future Directions
The expressions of interest received will be evaluated by an independent expert panel, with selected countries invited to develop comprehensive investment plans. These plans aim to unify strategic investments under a transformative vision, positioning participating countries at the forefront of global decarbonization efforts.
Harry Boyd-Carpenter, Managing Director of Climate Strategy and Delivery at the European Bank for Reconstruction and Development, emphasized, “We are delighted that this first in its kind multilateral investment program, with a strong focus on the private sector, is launched today.”
Eligible countries have until January 17, 2025, to submit their expressions of interest via the CIF website, marking a significant step towards global industrial transformation.