Curtain raiser

The 2012 Climate Investment Funds (CIF) Partnership Forum will meet on 6-7 November 2012 in Istanbul, Turkey, and is being co-hosted by the CIF and the European Bank for Reconstruction and Development (EBRD).

The Forum will provide an opportunity for governments, civil society, indigenous peoples, the private sector and others to contribute to a deepened understanding of the linkages between climate change and development as they have been addressed within the CIF. As all CIF programs are now moving into implementation at the country level, the 2012 Partnership Forum is expected to emphasize on-the-ground implementation, knowledge building and lesson sharing. The Forum will include plenary sessions and a series of smaller parallel sessions, which are intended to address the multiple interests of CIF stakeholders and enable open discussions to explore ways to maximize CIF effectiveness. Sessions will address, inter alia: engendering climate finance; sustainable energy for all; enabling private sector investment; sustainable cities; civil society participation in the CIF; and addressing adaptation, mitigation and poverty reduction in one go. A session will also be held on hydrometeorological and climate services.

Meetings that took place in the days prior to the Partnership Forum include CIF Pilot Country Meetings, Sub-Committee and Trust Fund Committee meetings, a master class on wind and biodiversity issues, a Civil Society Forum, a Private Sector Forum, a meeting on the FIP Dedicated Grant Mechanism for Indigenous Peoples and Local Communities, and a number of side events.

A BRIEF HISTORY OF THE CLIMATE INVESTMENT FUNDS

The CIF, formally approved by the World Bank’s Board of Directors on July 1, 2008, is a collaborative effort among the multilateral development banks (MDBs) and countries to initiate transformational change towards climate-resilient, low-carbon development. The CIF was designed through consultations with various stakeholders and is governed by donor and recipient countries, with active observers from the UN, the Global Environment Facility (GEF), civil society, including indigenous peoples’ organizations, and the private sector. Thus far, donor countries have pledged approximately US$7.2 billion to the CIF.

Through two distinct funds, the Climate Technology Fund (CTF) and the Strategic Climate Fund (SCF), the CIF support developing countries’ efforts to mitigate and manage the challenges of climate change by providing grants, concessional loans and risk mitigation instruments, as well as through leveraging significant financing from the private sector, the MDBs and other sources. With CIF support, 48 developing countries are piloting low-emission and climate-resilient development, transformations in clean technology, sustainable forest management, and increased energy access through renewable energy. Thus far, donor countries have pledged approximately US$7.2 billion to the CIF, administered through country-led programs and investments, by the African Development Bank (AfDB), Asian Development Bank (ADB), EBRD, Inter-American Development Bank and World Bank Group. Another approximately US$43 billion in co-financing from governments, the private sector, MDBs and other sources is expected to be leveraged.

The CTF and the SCF each have a specific scope and objective and their own governance structure, with each governed by a separate Trust Fund Committee with equal representation from contributor and recipient countries. The CTF Trust Fund Committee oversees the operation of the Funds, provides strategic direction, and approves and oversees its programming and projects. The SCF Trust Fund Committee approves the establishment of its three targeted programs and advises on strategic direction. The SCF targeted programs include the Forest Investment Program (FIP), Pilot Program for Climate Resilience (PPCR), and Scaling-up Renewable Energy Program in Low Income Countries (SREP), each of which is governed by its own Sub-Committee. Decisions of the Trust Fund Committees and Sub-Committees are taken by consensus. “Active” observers from the UN, GEF, UN Framework Convention on Climate Change (UNFCCC), civil society, indigenous peoples’ organizations and the private sector are invited to participate in Trust Fund Committee and Sub-Committee meetings.

The CTF provides developing and middle-income countries with positive incentives to scale up the demonstration, deployment and transfer of technologies with a high potential for long-term greenhouse gas emission reductions. It focuses on large-scale, country-initiated renewable energy, energy efficiency and sustainable transport projects. Each CTF investment plan is tailored by the country to be integrated into national development objectives. To date, although half of CTF funding has been approved, progress on implementation has been uneven. Many countries are now revising their investment plans to reflect changing circumstances on the ground. Eighteen recipient countries are participating in the CTF, and around US$5 billion has been pledged thus far.

The SCF supports developing country efforts to achieve climate-resilient, low-carbon development. It operates, through its three targeted programs, with dedicated funding to pilot new approaches to climate action to initiate transformation with potential for scaling up climate resilience. Pledges for the three SCF programs total approximately US$2.2 billion.

The FIP provides financing to support developing country efforts to reduce emissions from deforestation and forest degradation, and to promote conservation, sustainable forest management and enhancement of forest carbon stocks (REDD+). The FIP finances large-scale investments and leverages additional resources, including from the private sector, and complements other REDD+ financing mechanisms. The FIP aims to reduce the underlying threats to the world’s forests and to the communities that depend on them, addresses governance, and is active in eight pilot countries. Over US$635 million has been pledged to the FIP.

The PPCR: helps developing countries mainstream climate resilience into development planning; offers additional funding to support public and private sector investments; provides incentives for scaled-up action and initiates a shift from “business as usual” to broad-based strategies for achieving climate resilience at the national and regional levels; and supports climate-smart investments to address priority vulnerabilities in highly vulnerable developing countries, including small island developing states. PPCR priority areas include agriculture and food security, water security, climate services and infrastructure. Thus far, there are nine PPCR pilot countries and two pilot regions, and approximately US$1.2 billion has been pledged.

The SREP aims to: scale up the deployment of renewable energy technologies and expand renewable markets in the world’s poorest countries to increase energy access; build capacity; and pilot and demonstrate the economic, social, and environmental viability of low-carbon development pathways in the energy sectors of low-income countries. The program finances solar, wind, bio-energy, geothermal and small hydro technologies. To date, seven countries have joined the SREP as pilot countries, and more than US$360 million has been pledged to the program. The SREP Sub-Committee has endorsed investment plans from five countries, another country submitted its plan for endorsement at the November 2012 Sub-Committee meeting, and the seventh country has yet to submit its plan. The preparation of projects identified in the investment plans is also underway. In addition to the seven pilot countries, another four countries and one regional program have been identified, and funding has been made available for them to prepare their investment plans. Over US$360 million has been pledged to the SREP.

CIF PARTNERSHIP FORUM

As governments and institutions began designing the CIF, it became apparent that lessons and experiences would have to be shared for the CIF to contribute to an effective global solution to climate change. The CIF Partnership Forum was introduced to help ensure effective lesson sharing and the full engagement of all stakeholders in the CIF process in an inclusive, transparent and strategic manner.

Thus, a Partnership Forum was incorporated into the CIF process to serve as a regular venue in which all stakeholders could share CIF-related ideas and experiences, and engage in dialogue on the CIF’s strategic directions, results and impacts. Stakeholders involved in the process include: representatives of donor and eligible recipient countries, MDBs, UN agencies, the GEF, the UNFCCC, the Adaptation Fund, bilateral development agencies, NGOs, civil society organizations (CSOs), including indigenous peoples’ organizations, private sector entities, and scientific and technical experts. At the Partnership Forum, donor and recipient countries select, within their respective constituencies, members to serve on the CIF Trust Fund Committee and Sub-Committees.

In October 2008, an initial CIF Partnership Forum was held at World Bank Headquarters in Washington, DC, to begin the Forum process, as the structure of the CIF was still being refined. This first Forum served as an early opportunity to explore how best to promote dialogue and open exchange on various aspects of the CIF and set the stage for convening the Forum on a regular basis.

2010 CIF PARTNERSHIP FORUM: The 2010 CIF Partnership Forum, held from 18-19 March 2010 at ADB Headquarters in Manila, the Philippines, brought together 400 participants, representing more than 70 countries, nearly 80 NGOs and CSOs, including indigenous peoples’ organizations, MDBs, UN agencies and the private sector. The 2010 Forum provided a platform for stakeholders to reflect on the first year of CIF operations, engage in dialogue on knowledge gained to date, and extract useful lessons learned to inform further CIF implementation. The Forum enabled participants to share lessons learned from the CIF design process and early implementation of CIF-funded programs, in particular, from country-level activities of the CTF and the PPCR, which had both advanced to the implementation stage.

2011 CIF PARTNERSHIP FORUM: The 2011 CIF Partnership Forum convened from 24-25 June 2011 in Cape Town, South Africa. The Forum was preceded by: Trust Fund and Sub-Committee meetings; CSO consultations; and CIF Pilot Country Meetings, which provided an opportunity for pilot countries in the SCF programs and CTF to provide updates on their progress and experiences with the CIF, as well discuss challenges and lessons learned.

The Forum was organized by the AfDB and the World Bank, in consultation with other MDB partners, and had approximately 450 participants in attendance. The Forum included: plenary sessions featuring stakeholder perspectives, experiences and reflections on CIF strategic directions, results and impacts; panel discussions on ways to maximize CIF impacts at the country and sectoral levels; messages from the Pilot Country Meetings; and presentations on lessons learned. Participants also convened in a CSO Panel and eight breakout sessions on issues related to, inter alia: private sector engagement in adaptation; climate-smart mobility; promoting clean technology manufacturing; innovative partnerships; financing transformation; and wind energy.

The Forum provided an opportunity for CIF stakeholders to: explain how the CIF is working in their respective countries; discuss what is most effective and how the CIF can be expanded or improved; share on-the-ground achievements, challenges and knowledge; and help other CIF stakeholders apply lessons learned. The 2011 CIF Partnership Forum also aimed to: raise awareness of the CIF and country selection process; provide feedback to CIF governing bodies; and identify opportunities for further stakeholder participation.

The CIF 2012 Partnership Forum is a publication of the International Institute for Sustainable Development (IISD) <info@iisd.ca>, publishers of the Earth Negotiations Bulletin © <enb@iisd.org>. This issue was written and edited by Leila Mead, Delia Paul and Yulia Yamineva, Ph.D. The Digital Editor is Francis Dejon. The Editor is Robynne Boyd <robynne@iisd.org>. The Director of IISD Reporting Services is Langston James “Kimo” Goree VI <kimo@iisd.org>. Funding for coverage of this meeting has been provided by the World Bank. IISD can be contacted at 161 Portage Avenue East, 6th Floor, Winnipeg, Manitoba R3B 0Y4, Canada; tel: +1-204-958-7700; fax: +1-204-958-7710. The opinions expressed in the Bulletin are those of the authors and do not necessarily reflect the views of IISD. Excerpts from the Bulletin may be used in other publications with appropriate academic citation. Electronic versions of the Bulletin are sent to e-mail distribution lists (in HTML and PDF format) and can be found on the Linkages WWW-server at <http://enb.iisd.org/>. For information on the Bulletin, including requests to provide reporting services, contact the Director of IISD Reporting Services at <kimo@iisd.org>, +1-646-536-7556 or 300 East 56th St., 11D, New York, New York 10022, USA. The IISD Team at the Pilot Country Meetings can be contacted by e-mail at <leila@iisd.org>.