The Climate Investment Funds (CIF) are disbursed through the Multilateral Development Banks (MDBs) to support effective and flexible implementation of country-led programs and investments.
CIF resources are available through MDBs to assist developing countries fill financing gaps in supporting efforts aimed at climate mitigation or strengthened resilience to climate change impacts. The funds are designed to complement existing bilateral and multilateral financial mechanisms and, as such, their operations are coordinated with the programs of other financial institutions. To ensure this, an important feature of CIF’s programming is MDB engagement, under the leadership of the country, and with the United Nations Agencies and bilateral development and investment agencies, with a view to mobilizing co-financing and harmonizing policy support.
CIF implementing MDBs include the Inter-American Development Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and World Bank Group. Additional information on climage change and the World Bank can be found here.
CIF are designed as an interim measure for the MDBs to demonstrate what can be achieved through scaled-up financing blended with development finance. Reflecting on its interim nature, CIF funds include specific sunset clauses linked to agreement on the future of the climate change regime. As sustainable economic growth and poverty reduction is the core mission of the MDBs, it is important that climate change mitigation and adaptation considerations be integrated into the sustainable development process. Recognizing this, the following principles were taken into account while developing the CIF Trust Funds.
• Climate change mitigation and adaptation will positively impact the basic human needs of the poorest who are disproportionately impacted by the challenges of climate change;
• MDBs can and should play a role in ensuring access by developing countries to adequate financial resources and appropriate technology for climate actions.;
• MDBs should mobilize new and additional financing for adaptation and mitigation programs to address climate change. These should be country-led and designed to support sustainable development and poverty reduction. Activities financed by the Fund should be based on a country-led approach and should be integrated into country-owned development strategies, consistent with the Paris Declaration;
• Achieving sustainable outcomes will require sustaining total wealth – produced, human, institutional, and natural – on which development depends;
• The UN is the appropriate body for broad policy setting on climate change. The MDBs should not preempt the results of climate change negotiations and any actions to address climate change should be guided by the principles of the UNFCCC;
• In collaboration with other development partners, the MDBs should assist developing countries to build country-level knowledge, capacity, and development project experience;
• It is appropriate for the MDBs to build partnerships with each other and a wide range of institutions and stakeholders on climate change, including the private sector. In doing so, each MDB should remain accountable to its governing body.
• Complementarities between activities foreseen for the CIF and activities of the Global Environment Facility (GEF) and the UN, especially at the country-level, should be identified. Effective cooperation should then be established, to maximize synergies and avoid overlap;
• The CIF Trust Funds should provide for transparency and openness in its governance and financing operations.