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.
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.
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 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 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.
UK Partnering for Accelerated Climate Transitions (UK PACT) is the Department for Business, Energy, and Industrial Strategy’s (BEIS) flagship technical assistance programme and is funded via the UK’s International Climate Finance (ICF) commitment. UK PACT operates in countries with high greenhouse gas emissions that are eligible to receive Official Development Assistance (ODA) and have potential for high emissions reduction. UK PACT supports these countries to increase and implement their ambitions for emissions reductions in line with internationally agreed commitments (NDCs). UK PACT works strategically to leverage the UK’s position as a global leader in tackling climate change to provide support and share expertise, build strong relationships with other governments, and deliver transformational assistance
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.
ODA grant funding that supports clean energy research, development & demonstration (RD&D) to help improve the performance of innovative technologies, and to accelerate the clean energy transition to avoid the most severe impacts of climate change in developing countries
To stabilise the deforestation frontier in the areas of Colombia most acutely threatened by deforestation and affected by conflict, by improving land systems and usage rights, building capacity to effectively tackle environmental crime, and promoting sustainable forest livelihoods and enterprises.
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.