$5.2 billion
The Clean Technology Fund (CTF) enables clean energy transformation in developing countries. It provides resources to scale up low-carbon technologies with significant potential for long-term greenhouse gas emissions savings. The fund supports a wide array of clean technologies across different areas, including renewable energy, energy efficiency (of buildings, agriculture, and industry), and clean transport.
The fund uses a blend of financial instruments, including grants, contingent grants, concessional loans, equity, and guarantees to make investing in low-carbon technologies more attractive to both public- and private-sector investors in low- and middle-income countries.
An investment plan is developed under the leadership of the recipient country that identifies the major sources of greenhouse gas emissions and key opportunities for mitigation. The scope of these plans is tailored to fit national priorities. The fund then works to source co-financing and scale access to capital for clean energy projects by encouraging financial institutions to develop lending programs for private companies. Beyond investment plans, countries can also pursue projects that prioritize private-sector investments in specific thematic technology areas.
Climate Investment Funds
Yes
The results reported for CTF are based on the CTF Revised Results Framework, which includes the core indicators measured at the project level and reported on annually. Each project and program is also required to identify and report on at least one indicator for a development co-benefit. The MDBs collect results data on an annual basis following the CTF Monitoring and Reporting Framework and using a template provided by the CIF Secretariat. The template lists indicators for projects and programs approved by the corresponding cut-off date for reporting. The data are then collated, clarified, analyzed, and presented in the Results Report.
The Clean Technology Fund (CTF) Trust Fund Committee is the decision-making body responsible for determining and overseeing the operations and activities of the fund.
Equal number of representatives from contributor and recipient countries serve as decision-making members on the Committee. Official observers from stakeholder groups also participate in the Committee to advocate on behalf of their constituents and promote transparency and efficient use of resources.
The responsibilities of the Trust Fund Committee include:
· Approving CTF programming and pipeline priorities, operational criteria and financing modalities;
· Endorsing investments plans;
· Approving allocation of fund resources for programs and projects; · Governing the Accelerating Coal Transition (ACT) Investment Program; and
· Ensuring the strategic orientation of the fund is guided by the principles of the UN Framework Convention on Climate Change.
Sectoral, sub-national, regional, and national entities seeking funding for large-scale projects that focus on the power sector, transport sector, or energy efficiency may be eligible. Additionally, dedicated private sector programs (DPSP) provide dedicated funding windows of the CTF that finance large-scale private sector projects in clean technology.
The CTF uses the following criteria to assess and prioritize the proposed pipeline of public sector programs and projects, with a view to maximizing the impact of CTF resources:
· Potential for GHG Emissions Savings
· Cost-effectiveness
· Demonstration Potential at Scale
· Development Impact
· Implementation Potential
· Additional Costs and Risk Premium
Additional private sector criteria include:
· Financial sustainability
· Effective utilization of concessional finance
· Mitigation of market distortions
· Risks
See here for further details on Investment Criteria for Public Sector Operations and here for further details on investment criteria for Private Sector Operations
Global