Washington– The Climate Investment Funds (CIF) have declared today that they are willing to invest up to $1 billion in order to accelerate the development of technologies that are to be utilized for emission reduction in industrial sector of developing countries. This initiative comes as global leaders prepare for the 15th Clean Energy Ministerial (CEM15) taking place in Brazil.
CIF, which collaborates with the World Bank and other major international lenders, plays a crucial role in development finance by assuming higher risks and providing funds at lower rates, thereby encouraging other investors to participate. Funded through CIF’s $8.6 billion Clean Technology Fund – it would help decarbonize sectors such as cement, steel, iron and chemicals as they are responsible for almost 25% global green house 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,” CIF Chief Executive Tariye Gbadegesin said.
Following the program’s initial announcement at global climate talks in 2022, countries are now invited to submit funding applications, with expressions of interest due by January 17.
Finance will be a key topic at the upcoming COP29 conference in Azerbaijan this November, where richer nations are being urged by developing countries to commit to a new annual funding goal of $1 trillion or more to support climate initiatives.
With respect to this initiative, Kerry McCarthy, Britain’s Minister for Climate, underscores the significance when she said, “Speeding up the decarbonisation of steel, iron and cement in emerging markets around the world is how we will reduce global emissions and accelerate the clean energy transition.
As the global demand for these essential materials is projected to rise significantly by mid-century, this investment means a really important step in making industrial growth climate-friendly and moving towards a technology-powered low-carbon economy.