The USD 5.5 billion CTF was established in 2008 to provide emerging economies with scaled-up financing (loans, subordinated debt, equity investments, guarantees and grants), through six partner MDBs, to contribute to the demonstration, deployment, and transfer of low-carbon technologies with a significant potential for long-term greenhouse gas (GHG) emission savings. As the only mitigation-focused multilateral fund built around the operating model of the MDBs, CTF’s MDB-collective model is designed to take full advantage of MDBs’ key strengths, as well as their ability to leverage capital to attract large volumes of finance from both public and private sources. Some of its key features include its ability to provide resources at scale, emphasis on private sector engagement, innovative financial instruments and a flexible programmatic approach.
Countries are selected by MDBs based on their potential to achieve transformative change in the clean technology field and are then subject to scoping. Country then prepares investment plan which is subject to endorsement by the relevant CIF Trust Fund Committee. The Trust Fund Committee then can approve individual projects or programs under the investment plan. The relevant implementing MDB(s) must then approve the projects or programs through their own processes.
Cumulative pledges: USD 5.5 billion
Investment Plan preparation, submission and approval may take up to 2 years.
Project preparation, submission and approval by the FIP sub-committee maximum 2 years.