Oct 31, 2019
The Climate Investment Funds (CIF) and International Solar Alliance (ISA) have formed a strategic partnership to promote solar energy deployment across 121 developing countries. Announced today at ISA’s Second Assembly, the new alliance will harness the comparative advantages of each organization—one of the world’s largest multilateral climate finance mechanisms and a premier global solar energy platform—to help mobilize additional financing for critical solar initiatives within ISA member countries.
“Partnerships are the bedrock of climate action,” said Mafalda Duarte, head of the Climate Investment Funds. “By adjoining the expertise and resources of two institutions bound by common purpose, this new agreement will accelerate momentum toward a low-carbon economy that benefits all. This is a milestone in our shared efforts to help overcome the climate crisis and meet the SDGs through innovative financing to significantly scale up solar power.”
As agreed in a memorandum of understanding, CIF and ISA have pledged to jointly address financial and policy constraints in renewable energy development across ISA countries while creating more opportunities for knowledge sharing.
As part of their efforts to enhance understanding of critical finance issues, today CIF and ISA also released a report analyzing the state of the solar energy market in ISA countries, as well as existing and future opportunities for continued sector growth. ISA member countries are home to 135 GW of solar capacity and hold immense potential for further renewables development.
"This announcement brightens the prospects for a more sustainable world,” said ISA Director General Upendra Tripathy. "This is a natural partnership between two likeminded organizations committed to lowering barriers to climate-smart investments. Together, we can do more to lift millions out of energy poverty while advancing global climate and development objectives.”
The economic landscape for solar energy has transformed over the last decade. Solar module prices have fallen more than 80% since 2010, and this trajectory is expected to continue apace. In response to lowering costs and enhanced regulatory policies, global installed capacity has swelled to a record 531 gigawatts (GW).
However, barriers continue to exist in a number of developing countries. Concessional financial resources such as those provided through CIF are key to supporting downward cost trends and broadening access to solar energy by mitigating risks, unlocking demand and supply, and laying the policy and market foundations that are instrumental in attracting scaled-up solar investment.
CIF is among the largest public financiers of solar technologies, investing some $2 billion in private and public solar initiatives globally. These include the world’s largest concentrated solar power plant, utility-scale solar parks, rooftop solar panels, and floating solar facilities. For every dollar that CIF invests, financing partners contribute an additional $9 in support of a climate-smarter future.
About CIF
Marking more than ten years of climate action, the $8 billion Climate Investment Funds is among the largest multilateral climate financing instruments in the world. CIF provides developing countries financing for climate-resilient and low-carbon development. These grants, concessional loans, risk mitigation instruments, and equity leverage significant financing from the private sector, multilateral development banks (MDBs), and other sources. Five MDBs—the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), and World Bank Group (WBG)—implement CIF-funded projects and programs.
Media contact
Scott Vincent Andrews
E: sandrews3@worldbank.org
T: +1 (202) 458-9562
