This region contains the European Union — the second-largest global economy; four of the top 10 richest countries on Earth; the five nations of Central Asia — Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan; the land mass that bridges both Europe and Asia; and Türkiye. Fifty-four of the region’s countries are either high- or middle-income economies.
Its total population is fast approaching one billion, with a marked transition to an older population structure. In some of the richest European economies, the share of people who are over 80 years old is expected to increase from six percent to 15 percent by 2100; as such, an overall decline in population is expected over the next few decades. Even Central Asia, where the current median age of its population is in the mid-20s, is anticipating a significant age increase.
Given that some countries in the region are the world’s largest sources of carbon-absorbing boreal forests and grasslands, they are globally important for climate-mitigation efforts.
Investing in Europe and Central Asia
The Climate Investment Funds (CIF) have enabled several important adaptation and mitigation interventions in some of the most vulnerable countries in the region.
Kyrgyz Republic: CIF’s Pilot Project for Climate Resilience (PPCR) is supporting the landlocked Kyrgyz Republic to develop a strategic plan for strengthening climate resilience in a nation, characterized by limited water supplies and a heavy reliance on agriculture. The program aims to build capacity for adaptation at the institutional level and in the country’s water, agricultural, and energy sectors.
Türkiye: CIF’s Clean Technology Fund is enabling Türkiye to expand domestic renewable energy production and increase energy efficiency. With a rapidly growing economy, the country aims to be less dependent on energy imports by striving for cleaner, greener growth. Through wind power expansion, smart-grid upgrades, and other climate-smart projects, the country has already massively cut greenhouse gas emissions and saved $568 million in avoided oil imports annually. This market has successfully matured to one that can be financed on purely commercial terms.
Tajikstan: Grant financing under PPCR is enabling Tajikstan, one of the poorest and most vulnerable countries in the region, to climate-proof key water and hydroelectric infrastructure and support sustainable land management measures to protect rural livelihoods and jobs.
The Climate Situation
Central Asia faces a significant food security threat: crop yields are expected to endure a 30-percent decrease by 2050. Contributary factors include the ongoing loss of glaciers and reduced snowpack melt in a sector that is reliant on water runoff for crop irrigation.
An estimated 22 million people in Central Asia have no direct access to clean water. Climate change impacts are expected to further reduce access in the coming decades.
Even in the comparatively richer European Union, there is no climate change immunity. The World Bank predicts that, without adaptation, 400,000 jobs may be lost annually by 2050, with the cost of extreme weather events reaching EUR170 billion by 2100.
Biodiversity is under threat from climate change impacts, such as the loss of forest cover and the conflict between excessive water usage in some areas and limited water resources in others.
The region is energy-hungry and heavily reliant on fossil fuels, accounting for 10 of the 20 most emissions-intensive economies in the world, with 75 percent coming from energy production and usage.
The Benefits of Partnering with the Climate Investment Funds
CIF is a global leader in the delivery of climate finance for piloting and scaling cutting-edge climate solutions and innovations in low- and middle-income countries.
CIF’s investments have been helping countries adapt to climate change and mitigate its impact since 2008. Through a programmatic approach, CIF supports an inclusive and just climate-smart future by focusing on diverse partnerships that de-risk green markets and unlock additional investments and financing.
To date, 15 contributor countries have pledged over $10 billion to CIF. This is expected to mobilize an additional $62 billion in co-financing for 73 recipient countries.
CIF’s funding enables and scales up transformational climate action. This includes funding for policy and regulatory reform and local capacity building to create the enabling environment for lasting change in partner countries. The funding specifically supports low- and middle-income countries in transitioning to clean energy, adapting and building resilience to climate change, protecting and managing nature, growing cities sustainably, and decarbonizing industries.
Europe & Central Asia Projects
News Spotlight
Event Spotlight
Climate action and development are inextricably linked. This link has been confirmed by a new independent evaluation that assesses and analyzes how climate finance programs can lead to broader social, economic, environmental, and market development impacts.
May 03, 2023
09:00 AM - 10:30 AM EST
