GLOBAL WARMING CAN BE LIMITED BY REDUCING OR AVOIDING GREENHOUSE GASES STEMMING FROM HUMAN ACTIVITIES – PARTICULARLY IN THE ENERGY, INDUSTRY, TRANSPORT, AND BUILDING SECTORS WHICH TOGETHER ACCOUNT FOR OVER 75% OF GLOBAL EMISSIONS.1 LOW CARBON TECHNOLOGIES ARE KEY TO ACHIEVING MITIGATION WHILE CREATING NEW ECONOMIC OPPORTUNITIES.

ESTABLISHED IN 2008, THE $8.3 BILLION CLIMATE INVESTMENT FUNDS (CIF) ADDRESS THESE CHALLENGES BY DELIVERING INVESTMENTS AT SCALE TO EMPOWER CLIMATE-SMART TRANSFORMATION.

CLEAN TECHNOLOGY FUND

The $5.8 billion Clean Technology Fund (CTF), is a funding window of the INCLUDING CIF (Climate Investment Funds). It is empowering transformation in developing $5.8 $491MILLION and emerging economies by providing BILLION DEDICATED PRIVATE SECTOR PROGRAM resources to scale up low carbon technologies with significant potential for long-term greenhouse gas emissions ENDORSED CTF INVESTMENTS EXPECTED TO LEAD TO: savings.

Over $3.8 billion (66 percent of CTF 2 resources) is approved and under 1.5 BILLION TONS OF CO AVOIDED implementation in clean technologies such as renewable energy, energy efficiency, = and clean transport. This is expected to leverage another $38 billion in co- 315 MILLION CARS OFF THE ROAD financing.

CTF concessional financing, channeled RENEWABLE ENERGY WIND, SOLAR, GEOTHERMAL to countries through partner multilateral ENERGY EFFICIENCY MUNICIPAL, HOUSEHOLD, INDUSTRY development banks (MDBs), is boosting CLEAN TRANSPORT RAPID TRANSIT, EFFICIENCY VEHICLES, MODAL SHIFTS investor confidence and attracting significant co-financing from other sources by: CTF COUNTRIES Chile Morocco Vietnam  Driving down technology costs Colombia Nigeria Middle East and North Africa  Supporting first-movers Egypt Philippines Region India South Africa (Algeria, Egypt, Jordan, Libya,  Bridging financing gaps Indonesia Thailand Morocco, Tunisia)  Creating markets Kazakhstan Turkey  Innovating private sector finance Mexico Ukraine

THE CIF • 4 FUNDING WINDOWS • TOTALLING $8.3 BILLION • $58 BILLION CO-FINANCING • CLIMATE-SMART DEVELOPMENT IN 72 COUNTRIES DRIVING DOWN SUPPORTING FIRST TECHNOLOGY COSTS MOVERS IN THAILAND IN MOROCCO ❝ In Thailand, $100 million from the CTF administered by the Asian Development “The CIF is needed to encourage In Morocco, the African Development Bank is supporting a number of investments in what are perceived as Bank (AfDB) and World Bank have pioneering projects under the Private riskier countries—whether in Africa, jointly supported the 500+MW Noor Sector Renewable Energy Program. These parts of Latin America, Asia, or Middle concentrated solar power (CSP) complex, projects are expected to lead to over 430 East—and reduce the perception of one of the world’s largest. Together, these MW installed capacity. that risk. Then the private sector will MDBs have channeled $435 million from

step in much more readily. the CTF alongside their own investment Also in Thailand, the International of $980 million. Independent analysis Finance Corporation (IFC) blended $8 Paddy Padmanathan concludes that the low-cost debt is million in commercial financing from Chairman and CEO of ACWA Power already driving down the cost of CSP in its own resources with $4 million in (Noor complex project developer, Morocco by 25 percent for Noor I and an concessional finance from the CTF to Morocco) additional 10 percent for Noor II and III, support expansion of one of Thailand’s thus reducing the government subsidy earliest solar PV developers, female required to bridge the affordability gap entrepreneur Wandee Khunchornyakong’s for CSP. Solar Power Company Group (SPCG.) This financing enabled SPCG to mobilize The complex expects to achieve over additional financing from local banks and 500 MW installed capacity, ultimately bring 12MW in utility-scale solar power supplying power to 1.1 million Moroccans CTF MODEL IS UNIQUE capacity over the finish line. Wandee by 2018. It will reduce the country’s received the prestigious Momentum for  Flexible, programmatic approach energy dependence by about 2.5 million Change award from the United Nations’ for greater coordination, tons of oil, while also lowering carbon Climate Change secretariat in 2014 for this cooperation, and financial flows emissions by 760,000 tons per year. It is a groundbreaking initiative. cornerstone of the Moroccan Solar Energy

 Providing risk-taking, long-term, Program, which aims to install 2 GW of By demonstrating the commercial viability concessional financing alongside solar power by 2020. of private sector utility-scale energy technical assistance and advisory generation projects, the program is services overcoming risk perceptions. It does this by establishing replicable business models  Business model based on market for renewable energy technologies - a demands in 72 countries track record of investments will catalyze market transformation. BRIDGING FINANCING CREATING MARKETS GAP IN SOUTH AFRICA IN TURKEY INNOVATING PRIVATE SECTOR FINANCE In South Africa, the 100 MW Sere Wind Turkey is working to expand domestic Farm is one of the largest wind farm energy production via renewables and The CTF is continuously refining its projects in Africa and the first commercial increase energy efficiency. Together the private sector approach to adjust utility-scale renewable energy project European Bank for Reconstruction and to changing market realities and of the national utility Eskom. It will save Development (EBRD) and World Bank break down investment barriers. In nearly 6 million tons of greenhouse gas Group, including the International Finance 2013, a Dedicated Private Sector emissions over its 20-year expected Corporation (IFC), are channeling a total Program (DPSP) was launched to operating life. Average annual energy of $270 million from the CTF to address inject additional speed and flexibility production is estimated at about 298,000 market barriers and drive investment in into the CTF. Designed to foster megawatt hours (MWh), enough to supply renewable energy and energy efficiency first-of-a-kind approaches and about 68,000 standard homes. with Turkish financial intermediaries. business models among countries, MDBs, and private investors, it has The development of Sere Wind Farm is In the first phase alone (through end since allocated over $491 million to part of South Africa’s efforts to diversify its of 2012), $172 million from the CTF ramp up innovative investments in energy mix to reduce reliance on coal. A leveraged $1.8 billion through 430 sub- technologies like geothermal, solar total of $100 million in concessional funds projects, saving 902,000 tons of CO2 photovoltaics (PV), and mini-grids from CTF channeled through the AfDB and equivalent and $568 million in avoided worldwide. World Bank were essential to bridge the oil imports per year. CTF impact on the cost gap relative to coal power generation energy efficiency market is most notable The CTF is now developing strategies and in providing the positive incentives as this market progressed from barely to raise funds in the capital markets required for Eskom and its lenders to existent to one that can be financed on to help finance the next generation proceed with the investment. purely commercial terms. of CTF investments. These strategies could open the door for new The CTF hopes to do the same for the investments in frontier areas, such geothermal power industry by supporting as energy storage and distributed the high investment costs and risks generation, and potentially enable of exploratory drilling. With CTF funds investors to take part in the CIF structured to absorb the greatest risk, portfolio. MDBs and other financiers are able to co-invest and help expand the Turkish geothermal market from 600 MW currently to 1 GW targeted by 2030.

CIF INVESTMENT IN CSP $905M 1GW = OVER 1/5 CIF ALLOCATIONS CONTRIBUTING TO CURRENT GLOBAL CONCENTRATED SOLAR POWER INSTALLED CAPACITY 4.7 GW

CHILE / 10% 50% $67 MILLION FOR 50 MW SOUTH AFRICA / 50% $311 MILLION FOR350 MW 10% MENA REGION / 45% 45% $313 MILLION FOR 510 MW CLEAN TECHNOLOGY FUND

TARGETS4 CTF PORTFOLIO INSTALLED CAPACITY GHG EMISSIONS REDUCED OR AVOIDED ENERGY SAVINGS 17 GW 51.4 MT CO2e/yr 10,300 GWh/yr $5.8B ALLOCATED3 ACHIEVED SO FAR — 121 projects 3.3 GW 7.5 MT CO2e/yr 3,600 GWh/yr $52 billion expected co-financing ≈ INSTALLED POWER CAPACITY ≈ 1.4 MILLION CARS OFF THE ROAD ≈ SAVING 6 MILLION BARRELS OF OF SLOVENIA EVERY YEAR OIL ANNUALLY

APPROVED CTF FUNDING SECTORS AND TECHNOLOGIES SUPPORTED BY CTF

Transport Geothermal $3.8B Renewable energy/energy efficiency Solar IN MDB APPROVED — Renewable energy Wind 80 projects $35 billion co-financing Energy efficiency Mixed renewable energy

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 - 500 1,000 1,500 2,000 CTF CO-FINANCING SOURCES USD million USD million Approved and under implementation Allocated and under development 12% GOVERNMENT 32% PRIVATE SECTOR CTF COUNTRIES 14% OTHERS

Turkey Ukraine Kazakhstan

Algeria Libya Egypt Jordan Morocco Tunisia Nigeria Mexico South Africa Colombia India Chile Thailand Vietnam Indonesia 31% MDBs Philippines

11% BILATERALS

Notes 1 Intergovernmental Panel on Climate Change, “Fifth Assessment Report (AR5) Synthesis Report,” 2014. 2 Vivid Economics. “Learning by Doing:PROJECT(S) The CIF’s BEING Contribution SUPPORTED BY to Climate Finance,” 2014. 3 Overprogramming rate of the CTF is 30CIF DEDICATEDpercent. PRIVATE SECTOR FUNDING 4 Based on 2015 CTF Results ReportCTF covering 55 MDB-approved projects/ programs reporting over a one-year period. Equivalents based on EPA Greenhouse Gas Equivalencies Calculator and Climatescope 2014.

Photos: World Bank Group, Fadel Senna/AFP

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