Cumulative pledges: USD 5.8 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.
The Clean Technology Fund (CTF) is one of the two multi-donor trust funds within the wider Climate Investment Funds (CIFs).
The CTF was established in 2008 to provide emerging economies with scaled-up financing for the demonstration, deployment, and transfer of low-carbon technologies with a significant potential for long-term greenhouse gas (GHG) emission savings. The CTF received USD 5.8 billion in commitments, to be deployed through six partner multilateral development banks (MDBs).
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.
The objectives of the CTF are to:
- Provide positive incentives, through public and private sector investments, for the demonstration of low carbon development and mitigation of greenhouse gas emissions;
- Fund low carbon programs and projects that are embedded in national plans and strategies, scaling up development and accelerating the diffusion and transfer of clean technologies;
- Realize environmental and social co-benefits, illustrating the potential for low-carbon technologies in contributing to sustainable development and the Millennium Development Goals;
- Support international cooperation on climate change;
- Utilize skills and capabilities of the MDBs to raise and deliver new and additional resources, including official and concessional funding, at significant scale; and
- Share experiences and lessons learned in responding to climate change challenges.
9 donor countries: Australia, Canada, France, Germany, Japan, Spain, Sweden, UK, US
CTF investments should leverage additional financial resources, including from the private sector where feasible. Co-financing from the CTF may be provided through a variety of financing instruments utilized by the MDBs for investment and development policy lending.
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. It may include, but is not limited to, access to energy or health and employment co-benefits, preferably disaggregated by gender.
The MDBs collect results data on an annual basis following the CTF Monitoring and Reporting Framework and using a template provided by the CIF Administrative Unit. The template lists indicators for projects and programs approved by the corresponding cut-off date for reporting. The MDB completes these by July 31 each year. The data are then collated, clarified, analyzed, and presented in the Results Report.
The CTF contains a CTF Trust Fund Committee, and MDB Committee, a Partnership Forum, an Administrative Unit, and a Trustee.
- The CTF is governed by the Trust Fund Committee, which is composed of eight representatives from donor countries and eight representatives from eligible recipient countries. These representatives serve two-year terms. The Committee is also made up of one representative of a recipient country under consideration for a project, one senior representative of the World Bank, and one representative of the MDBs (rotating across MDBs).
- The MDB Committee was established to facilitate collaboration, coordination, and information exchange among the MDBs.
- The Partnership Forum is a broad-based meeting of stakeholders of the CIF and provides an opportunity for independent scientific, technical, and other advice on implementation issues.
- The Administrative Unit facilitates the CIF's work, the Trust Fund Committee, and other committees. It is housed in the World Bank Group’s Washington, D.C. offices.
- The Trustee is the International Bank for Reconstruction and Development (World Bank).
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 programs and projects, with a view to maximizing the impact of CTF resources:
- Potential for GHG Emissions Savings
- Demonstration Potential at Scale
- Development Impact
- Implementation Potential
- Additional Costs and Risk Premium
Recipient countries may benefit from the Facility provided they:
- meet Official Development Assistance (ODA) eligibility criteria according to OECD/DAC guidelines;
- have an active MDB country program (for this purpose, an “active” program means that an MDB has a lending program and/or on-going policy dialogue with the country).