The multilateral Climate Investment Funds announced its commitment to invest up to $1 billion to expedite the development of technologies to reduce industrial sector emissions in developing countries.
This group collaborates with the World Bank and other prominent international financiers and plays a crucial role in development finance by taking on greater risks and providing funding at lower rates, thereby encouraging additional investors to participate.
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In a statement released ahead of the 15th Clean Energy Ministerial (CEM15)in Brazil, the Climate Investment Funds (CIF) announced that the investment—sourced from CIF’s $8.6 billion Clean Technology Fund—will support the decarbonization of sectors such as cement, steel, iron, and chemicals, Reuters reports.
These industries currently contribute to approximately a quarter of global greenhouse gas emissions, and demand for their products is projected to rise significantly by mid-century, driven in part by the increasing need for these materials in the transition to a low-carbon economy.
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To mitigate the sector’s environmental impact, CIF’s industry decarbonization program will focus on funding cleaner operational methods. It will, for the first time, accept joint investment proposals from both public and private organizations.
Initially announced at global climate talks in 2022, countries can now apply for funding, with expressions of interest due by January 17.
Finance will be a key topic at the upcoming COP29 global talks in Azerbaijan this November. Many developing nations are urging wealthier countries to commit to an annual funding target of $1 trillion or more.