Department for Business, Energy and Industrial Strategy
The $8 billion Climate Investment Funds (CIF) accelerates climate action by empowering transformations in clean technology, energy access, climate resilience, and sustainable forests in developing and middle income countries. The CIF’s large-scale, low-cost, long-term financing lowers the risk and cost of climate financing. It tests new business models, builds track records in unproven markets, and boosts investor confidence to unlock additional sources of finance.
To increase the scale of climate change finance and support low-carbon, climate resilient growth in developing countries. The Green Climate Fund will finance projects and programmes in a range of developing countries, including the poorest and most vulnerable, through a range of financial instruments and terms designed to meet country priorities and needs. It will also leverage private finance in support of low-carbon, climate resilient development.
The NAMA Facility is targeted fund set up in 2012 by Germany and the UK to help finance measures that tackle and shift challenging sectors within a country’s climate mitigation action plans. Projects in these plans (their Nationally Appropriate Mitigation Actions Plans) funded by the NAMA Facility offer good potential for replication and are important building blocks towards implementing ambitious NDCs. The NAMA Facility is unique within the ICF for its open access competitive structure and projects are wide ranging in terms type (energy efficiency, transport, agriculture, renewables, waste) and geography (Asia, Africa and South and Central America) and noticeable for high level of country support.
The Forest Carbon Partnership Facility (FCPF) is managed by the World Bank. It was established in 2008 to assist developing countries in their efforts to reduce emissions from deforestation and forest degradation and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks (all activities commonly referred to as "REDD+") by providing value to standing forests. The FCPF has two separate but complementary funding mechanisms — the Readiness Fund and the Carbon Fund.
The UK Sustainable Infrastructure Programme in Latin America is a £177.5m bilateral programme funded by the UK International Climate Finance (ICF) and delivered by the Inter-American Development Bank (IDB) to support partner countries achieve their emission reduction commitments by mobilising private investment into low-carbon infrastructure. The programme works across four priority countries in Latin America, specifically Brazil, Colombia, Mexico and Peru, to reduce the market barriers to investment. The programme will span an initial investment period of 5 years (Nov 2017 – 2022).
UK Climate Investments (UKCI) is a joint venture between the Green Investment Group, now part of Macquarie, and the UK Government Department for Business, Energy and Industrial Strategy (BEIS). UKCI invests in renewable energy and energy efficiency projects across sub-Saharan Africa and India to demonstrate that low carbon development is possible, replicable at scale, commercially viable and capable of lowering carbon emissions and supporting economic growth. The fund (£200m of UK International Climate Finance) provides late-stage minority equity investments on a commercial basis to get projects off the ground that would not otherwise reach financial close.
UK is providing funding to a major new programme (Market Accelerator for Green Construction) with the International Finance Corporation (IFC) to build demonstration portfolios of green construction at scale, reducing emissions, mobilising new finance and inspiring markets to shift towards the new energy efficient buildings of the future.
The REDD Early Movers Programme is a global programme designed to reward pioneers in forest conservation and climate protection, providing conditional payments to countries or regions upon verified emission reductions from deforestation.
The project aims to raise the level of technical understanding of Carbon Capture, Usage and Storage (CCUS) within key developing countries and emerging economies with high emissions (such as South Africa, Mexico, Indonesia and China), leading to the establishment of the necessary policy frameworks and incentive structures to support commercial, large-scale CCUS demonstration and ultimately accelerate the deployment of CCUS.
The REPP programme provides support to private sector developers of small scale renewable energy projects in sub-Saharan Africa. REPP supports solar, hydro, biomass, biogas, geothermal, and wind projects up to 25MW installed capacity (up to 50MW for wind). REPP provides technical assistance direct to project developers, provides pre-construction and bridging loans, post-construction financing, and equity financing.
The Transformative Carbon Asset Facility will target sector or policy wide programmes where the implementing country is planning to take climate mitigation action. This could be via regulations, fiscal policies, feed-in-tariff or incentives. As long as these plans are in line with the TCAF programme selection criteria, in collaboration with the implementing entity (normally a Government ministry) TCAF will design a methodology that pays for the verified emissions reductions of the programme above its intended ambition, giving targeted support to unlock the barriers to allow the increased ambition to be realised.
GCPF is a public-private partnership which seeks to mobilise investment flows in energy efficiency and renewable energy projects in developing and emerging markets, with the aim to reduce greenhouse gas emissions. GCPF primarily does this by providing debt finance via local financial institutions, extending credit lines so they can offer loans for small-scale low carbon projects. A small proportion of the fund (9% at end-2018) is used for direct investments. GCPF also supports local finance institutions through technical assistance and capacity building.
The objective of the Global Challenges Research Fund is to ensure that UK research takes a leading role in addressing the problems faced by developing countries. This fund will harness the expertise of the UK’s research base to pioneer new ways of tackling global challenges such as in strengthening resilience and response to crises; promoting global prosperity; and tackling extreme poverty and helping the world’s most vulnerable.”
CP3 aims to demonstrate that climate friendly investments in developing countries, including in renewable energy, water, energy efficiency and forestry are not only ethically right but also commercially viable. It aims to attract new forms of finance such as pension funds and sovereign wealth funds into these areas by creating two commercial private equity funds of funds which will invest in subfunds and projects in developing countries, creating track records of investment performance which should in turn encourage further investments and accelerate the growth of investment in climate.
The Fund will provide technical assistance for REDD+ implementation and measures which improve the enabling environment for private sector investment; offer a finance for Verified Emission Reductions associated with avoided deforestation; and secures private sector finance, for example through purchasing commitments for sustainable commodities produced in the jurisdiction (sometimes called ‘offtaker agreements’). Each country programme under the BioCarbon Fund will operate at the jurisdiction-scale, that is within a landscape-wide area that is governed by a single political jurisdiction.
Ci-Dev will invest in low carbon technologies that deliver community and household level benefits, particularly focused on improving poor peoples’ access to clean energy. By successfully demonstrating the ability of carbon finance to deliver low carbon development in least developed countries Ci-Dev hopes to increase future carbon finance flows to these countries.
The World Bank’s Energy Sector Management Assistance Programme (ESMAP) has developed an Energy Transitions programme that targets six Asian countries (China, India, Indonesia, the Philippines, Pakistan and Vietnam) where the most new, unabated coal-fired power generation is due to begin operation (from 2018 to 2020). ESMAP is influential in advising countries on the clean energy transition, with significant demand for its technical assistance.
To reduce poverty by generating and putting into use knowledge and technology to address development challenges and advance development for the poorest people and countries. We will seek to maximise the practical impact of research and innovation to improve the lives and opportunities of the global poor. In achieving this we will grow the research and innovation capacity of developing countries, as well as contributing to the continued strength of the UK’s research and innovation system, and support our wider prosperity and global influence.
Supports small-scale on-grid renewable energy projects in Uganda in an effort to both avoid an energy shortfall and promote private sector investment. Aims to demonstrate to developing countries that an effective regulatory regime and cost-reflective tariffs will bring in investment in renewables.
The GCRF Living Deltas Hub's core objective is a significant contribution to better Sustainable Development Goal (SDG) outcomes for ODA-DAC countries in South and SE Asia, transforming policy and practice on the basis of new approaches to understanding delta change. It aims to address the significant challenges currently confronting delta social-ecological systems (SESs) in a transdisciplinary manner that responds to the interlinked agenda of the SDGs. The Hub focuses on the delta SESs of three major rivers: the Red River, Mekong (Vietnam) and Ganges-Brahmaputra-Meghna (GBM: Bangladesh, India). Deltas form part of wider river basins and so the Hub will also engage with other riparian country researchers, in Thailand, Cambodia, Laos and Myanmar. In addressing our intractable development challenge: 'how to avoid the collapse of South and SE Asian deltas as functioning, highly productive social-ecological systems in the face of human development and projected adverse consequences of climate change', the Hub will address four key questions relating to the region's deltas natural-cultural heritage: (1) How are deltas changing, and what are the key drivers and consequences? The Hub will establish patterns of severity and rate of environmental change to identify key pressure points on these vulnerable deltas and explore inter-connections between tangible and intangible heritage resources. (2) How can we learn from past experience to build better delta futures? The Hub will develop transdisciplinary and integrative socio-ecological frameworks to capture changing delta trajectories, identify threats, and derive co-produced solutions for better SDG outcomes. (3) How do we maximize capacity-sharing to ensure "no one is left behind"? The Hub aims to build societal capacity through knowledge co-production and transfer, through equitable partnership with delta communities, NGOs, government departments, academics and businesses to scope, map, and research human relationships with, and impacts on, deltas. (4) How do we address delta infrastructure, inequality and resilience? The Hub research team has been assembled specifically to achieve the capacity-building needed to enable progress on the SDGs in environmentally-vulnerable and fragile delta SESs and has a prominent track record of working with vulnerable and marginalized groups. The Hub will address these overarching questions through six innovative work packages (WPs) co-designed with DAC country co-investigators, and with North-South and South-South engagement at their heart. WP1 will co-produce understanding of the impacts of interactions between environmental change and human activities on the heritage and livelihoods of diverse delta dwellers; WP2 will provide a robust characterization and integrated risk-assessment of deltaic SESs. WP3 will quantify and assess how human impacts are changing delta ecosystems, and the consequences for natural and cultural heritage, now and in the future. Through a new 'Delta Health Index' we aim to communicate the state of ecosystem health of whole river basins to a wide range of stakeholders. WP4 will characterize coastal social-ecological tipping points and co-develop, with a wide range of stakeholders, potential delta-scale interventions to avoid negative, and facilitate positive, tipping point transitions. From WPs 1-4, we will aim to develop accessible delta-level SDG monitoring (WP5), and derive with stakeholders a new indicator-based assessment framework focusing on delta-specific SDGs. Our integration work package (WP6) will oversee capacity-building towards better SDG (1,2,3,5,6,8,10,12,13,14,15,17) attainment through gender-sensitive learning and knowledge co-creation, and explore opportunities for SDG-related commercial opportunities for economic advancement in DAC delta countries.