Private Sector Roles

CMIA is one of the two Active Observers for the Private Sector Organisations in the Board meetings of the $100 billion Green Climate Fund. We are also official Private Sector Observers of the $8.3 billion Climate Investment Funds, through our participation in the Forest Investment Program, and  to the $1.057 billion Forest Carbon Partnership Facility.

As Private Sector Observer we attend the meetings of the Board and Participant Committees of these Funds. We may express our views on issues under discussion but hold no voting rights. Participating at these meetings and committees gives CMIA insight and knowledge into the funds that deploy capital for climate finance and investment. Furthermore, since our membership is comprised of companies actively involved in the daily business of climate finance and investment, there is a dynamic flow of information and dialogue with these donor funds and the countries participating in their programs.

Green Climate Fund

The Green Climate Fund is the world’s only financial institution devoted solely to climate finance in the developing world. The CMIA holds one of the two active Private Sector Observer seats on the UN Green Climate Fund Board. As such, CMIA leads a global coalition of private sector players who are interested in how to mobilise private finance through the GCF, ensuring that their voice is heard by the GCF board to facilitate the design of effective finance and market solutions to combat climate change. The GCF is designed to help channel some of the US$100billion per year that developed countries have pledged to mobilise in climate finance targeted at developing countries by 2020.

Climate Investment Funds

The $8.3 billion Climate Investment Funds (CIF) is providing 72 developing and middle income countries with urgently needed resources to manage the challenges of climate change and reduce greenhouse gas emissions. The CIF is comprised of four programs:

  • $5.6 billion Clean Technology Fund (CTF)
  • The $1.2 billion Pilot Program for Climate Resilience (PPCR)
  • The $780 million Scaling Up Renewable Energy in Low Income Countries Program (SREP)
  • The $775 million Forest Investment Program (FIP)

CMIA is the Active Private Sector Observer at the FIP, a funding window of the CIF, providing indispensable direct investments to benefit forests, development and climate. FIP grant and low-interest loans, channeled through partner multilateral development banks (MDBs), are empowering countries to address the drivers of deforestation and forest degradation both inside and outside of the forest sector to achieve the triple win of being good for forests, good for development and good for the climate.

 Forest Carbon Partnership Facility

The Forest Carbon Partnership Facility (FCPF) assists 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 these activities are commonly referred to as “REDD+”. The FCPF is a multi-stakeholder partnership including 47 developing forest countries. There are 17 financial contributors comprised of developed countries, private sector participants and NGO and the Fund capital is $1.057 billion. This is split between two separate but complimentary funding mechanisms:

  • $365 million for the Readiness Fund
  • $692 million for the Carbon Fund

37 countries signed Readiness Fund grants and 18 countries are in the Carbon Fund pipeline.

As the Private Sector Observer to the FCPF we provide insight into project based private sector REDD+ activities and investments.

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