Dec 06, 2024
The Climate investment Funds’ (CIF) Industry Decarbonization Investment Program will invest in pioneering low carbon pathways in developing countries for heavy-emitting industries, notably clean technology supply chains.
We recently launched a Call for Expressions of Interest (EOIs) inviting eligible countries, and their multilateral development bank partners, to apply for up to $1 Billion in funding.
What should interested countries know before applying? Here are the top ten most frequently asked questions.
Why target industry?
The industrial sector currently generates a quarter of all global greenhouse gas emissions, and with demand for industrial products only set to rise, it’s clear that something must be done. This is where climate finance can be a game-changer. Building on CIF’s 16-year track record of pioneering promising new low-carbon technologies, this new program was designed to help developing economies shift their expanding industrial sectors to a sustainable and climate-resilient pathway.
What makes this investment program different?
Our program is the first of its kind to offer concessional finance for decarbonization on a catalytic scale. Countries can each apply for financial support of up to USD $250 million, provided primarily in the form of highly concessional loans. The program is also built on the understanding that transformational change can only occur when all relevant actors coordinate and work pull together. That is why applicant countries must identify private sector partners and a multilateral development bank to work with. At least 50 percent (and up to 100 percent) of the plan’s resources must be dedicated to the private sector.
Who can submit an application?
An Expression of Interest (EOI) can only be submitted by a national government ministry. However, joint EOIs are welcome:
- EOIs can be submitted by one country alone, or
- On behalf of a “regional group” of countries.
- Grouping do not need to be geographical; countries who do not share borders but who share similar challenges may still submit a joint application.
- Joint applications from governments in partnership with relevant trade associations, private sector firms, and/or a multilateral development bank (MDB) are also welcomed.
Any country (or countries) applying must be eligible for Official Development Assistance and must have an active lending program with at least one of CIF’s partners MDBs (i.e. the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank Group, and World Bank Group including the International Finance Corporation).
Which level should a decarbonization plan target?
We recognize that transforming high-emitting industries will be challenging, and will only succeed through a concerted, system-wide approach. This includes:
- The facility and technology level: For example, helping to commercialize promising clean technologies and business models that can lead to significant greenhouse gas emission reductions, especially in hard-to-abate processes)
- The corporate and sector level: For example, policies and regulatory environments that will lead to increased access to transformational finance, and build the needed supply chains)
- The national and regional levels: For example, facilitating multi-stakeholder discussions on climate-resilient pathways and the implementation of supportive policy)
What sectors and activities qualify for the program?
There is no exhaustive list, but as a broad guideline the program covers all efforts to shift to low-carbon pathways in the following sectors:
cement and concrete | iron and steel | chemicals and fertilizers | zero-emissions shipping | eco-industrial parks | pulp and paper | glass, ceramics and construction materials | non-ferrous metals, including aluminum and copper | textiles | clean technology supply chains | cross-industrial measures and alternative industry processes
Qualifying actions in these sectors might include switching to low-carbon raw materials and/or fuels (including green steel, green hydrogen, and fuels derived from waste), establishing recycling and scrap value chains for reusing existing materials, reducing energy use in industrial processes (including through waste heat recovery systems), and promoting use of renewable energy and clean technology supply chains across industries.
For more details, see the Industry Decarbonization Design Document.
What activities are not included?
While there is no fixed exclusion list for the program, all activities must be associated with the efforts of a specific country (or group of countries) to reduce greenhouse gas emissions. Examples of activities that do not qualify include:
- Efforts concerning global shipping, rather than regional or country level shipping;
- Developing sustainable aviation fuels;
- Any activity that extends the life of a fossil fuel-powered asset.
What is the just transition component?
All CIF programs – and the projects we support – must be designed to be just and equitable. This means any expression of interest should:
- Not only consult, but actively engage diverse stakeholder groups (including labor and worker organizations) throughout the process of planning, designing, and implementing.
- Consider conducting skills development or reskilling within specific industries, and other ways you can mitigate any negative impacts of the transition for the people involved.
- Identify opportunities that will arise during the transition to reform existing structures within industry that are creating injustices.
What is the timeline for applying?
The call for Expressions of Interest (EOIs) was issued in October 2024. The deadline for submitting an EOI is 17 January 2025. A group of independent experts will review all EOIs, and provide their recommendations by April 2025. The CIF Trust Fund Committee of the Clean Technology Fund will then make a final decision before June 2025.
What criteria will the independent experts use to select countries?
Amongst others, the experts reviewing submissions will look for:
- Evidence of a committed vision for achieving transformational change
- Alignment with our country’s existing climate strategies and plans
- Alignment with the strategic objectives of the industry decarbonization program
- Confirmation of the active involvement of the Ministry of Finance and any relevant line ministries or sub national government departments
See more on the selection criteria here.
My country is interested! Where can I submit an expression of interest?
All information and the form to complete is available at https://cif.org/industryEOI
If you have any specific questions that are not answered here, contact cifsecretariat@cif.org
