Nov 11, 2022
SHARM EL-SHEIKH, November 11 2022—Today, the Climate Investment Funds (CIF) launched CIF Industry Decarbonization, the world’s first multilateral investment program to help developing countries decarbonize hard-to-abate industries such as iron and steel, cement, chemicals and petrochemicals, aluminum, and pulp and paper.
The initiative aims to deploy at least $500 million to pilot and scale innovation through existing and next-generation technologies to reduce carbon intensity and promote a circular economy. So far, the United Kingdom and Sweden have pledged to capitalize the effort, with more commitments from other donors expected.
Industry is the second-largest source of carbon dioxide emissions after the power sector. Industrial emissions have been rising by more than 70 percent since 2000 and are projected to represent the biggest share of GHG emissions by 2030. Developing countries’ share in global industrial emissions is growing rapidly. For the world to stay on track toward a 1.5 °C future, industry emissions must decline by nearly a quarter before 2030, or 3 percent per year on average.
Building on CIF’s unrivaled track record in climate finance mobilization, CIF Industry Decarbonization will provide concessional and risk-bearing capital and technical assistance.
CIF Industry Decarbonization is the first investment mechanism that will realize a goal championed by movements such as the First Movers Coalition, LeadIT, and We Mean Business. Like all CIF programs, CIF Industry Decarbonization will be implemented through partner multilateral development banks.
“Emissions from hard-to-abate industries are concentrated in developing countries and set to rise,” said CEO of the Climate Investment Funds, Mafalda Duarte. “With the launch of the first-of-its-kind CIF Industry Decarbonization program, we will support developing countries, manage transition risks, and seize emerging economic opportunities. This investment platform will bring to bear concessional finance, technical assistance, and partnerships to ignite transformation across industries like steel, cement, and aluminum.”
MEDIA CONTACT:
Scott Vincent Andrews
sandrews3@worldbank.org
