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 a 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 has an open access competitive structure and projects are wide ranging in 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) 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 is a multi-donor Trust Fund managed by the World Bank. It has two separate but complementary funding mechanisms — the Readiness Fund and the Carbon Fund.
The Sustainable Infrastructure Programme Latin America (SIP-LA) is a £177.5m bilateral programme funded by UK International Climate Finance (ICF) and delivered by the Inter-American Development Bank (IDB). SIP-LA supports partner countries to achieve their emission reduction commitments by mobilising private investment into low-carbon infrastructure. The programme provides public sector technical assistance alongside private sector technical assistance and blended finance investments. It works with four partner countries: Brazil, Colombia, Mexico, and Peru.
UK Climate Investments (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
The Market Accelerator for Green Construction (MAGC) aims to drive the financing and construction of greener buildings in emerging markets. The programme is a partnership between the UK and the International Finance Corporation (IFC), it aims 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 (REM) Programme, currently operational in Latin America, aims to reward countries or jurisdictions considered as pioneers in forest protection and climate mitigation. It targets countries or regions that have already taken ambitious actions to protect forests and provides conditional payments upon verified emission reductions from avoided deforestation (REDD+). Results-based payments in the REM Programme are invested according to a “benefit-sharing strategy” that has been jointly agreed by partners.
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. 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.”
The Climate Public Private Partnership Programme (CP3) aims to increase low carbon investment in renewable energy, water, energy efficiency and forestry in developing countries. By showing that Low Carbon and Climate Resilient investments can deliver competitive financial returns as well as climate and development impact, CP3 seeks to catalyse new sources of climate finance from institutional investors such as pension funds and sovereign wealth funds.
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 ‘offtake 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.
The Carbon Initiative for Development (Ci-Dev) aims to increase the flow of international carbon finance, primarily into Least Developed Countries (LDCs). It launched in 2013 and supports climate change mitigation in pursuit of the Paris Agreement’s goals and facilitates access to cleaner energy and other poverty reducing technologies. It guarantees a revenue stream if projects deliver their expected benefits, builds local capacity to develop projects and monitor carbon emissions, and pilots projects that could serve as blueprints to increase LDC access to the international carbon market
The World Bank Energy Sector Management Assistance Programme (ESMAP) is a multi-donor trust fund that provides technical assistance to help shape global energy policies and leverage significant development financing. It primarily 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.
The Global Energy Transfer for Feed-in Tariff (GET FiT) Programme was established in 2013 with the main objective of assisting Uganda to pursue a climate resilient low-carbon development path by facilitating private sector investments in renewable electricity generation projects. The support provided was expected to improve access to electricity and promote growth and economic development in Uganda and contribute to climate change mitigation.
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.