"The climate finance discussion at the Asia Pacific Loan Market Association Project Finance Seminar clearly benefited from CMIA’s GCF Observer role."
Peter Zaman, Partner, Energy & Natural Resources, Reed Smith
Climate Funds: Private Sector Observer Roles
There are now over one hundred climate funds globally that are dedicated to financing climate mitigation and adaptation activities, mostly in emerging markets. They are predominantly funded by donor governments, but are increasingly looking to leverage private capital in order to mobilise private investment in their projects and undertakings.
Understanding and accessing the complex world of climate funds can be challenging for private sector participants as information on their policies and activities is not always clearly available, and there may be multiple layers of bureaucracy to navigate. Our Active Private Sector Observer status at some of the most influential global climate funds grants us privileged access to participate at their Board meetings and play a vital role in presenting private sector insight to inform Board decision making.
CMIA is one of a limited number of business organisations which have been granted Active Private Sector Observer (APSO) status at some of the most influential global climate funds, including the World Bank’s Climate Investment Funds (CIF). CMIA has held the developed markets APSO seat at the world’s biggest climate fund, the Green Climate Fund (GCF), from its inception. The GCF is committed to investing US$100 billion annually from 2020.
Green Climate Fund
The Green Climate Fund (GCF) was established by the UN in 2010 and is a unique global platform to respond to climate change by investing in low-emission and climate-resilient development. GCF was established by 194 governments to limit or reduce greenhouse gas (GHG) emissions in developing countries, and to help vulnerable societies adapt to the unavoidable impacts of climate change.
The active engagement of diverse stakeholders is in the DNA of the Green Climate Fund. The GCF Board is mandated to grant Accredited Observers access to its meetings.
CMIA holds one of two APSO seats on the UN Green Climate Fund Board. As such, CMIA leads a global coalition of private sector players who are driven 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.
Climate Investment Funds
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. The CIF is comprised of four programs:
- $5.4 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 APSO at the Clean Technology Fund, a funding window of the CIF, which is empowering transformation in developing countries by providing resources to scale up low carbon technologies with significant potential for long-term greenhouse gas emissions savings. Over $4 billion is approved for implementation in renewable energy, energy efficiency, and clean transport.