Nov 08, 2022
Making the fullest use of science and technology is one of the most effective ways to support the transition from carbon-intensive fossil fuels to cleaner alternatives. This is why today, COP27’s Science Day is aimed at bringing the science related to landmark reports, for example those published by IPCC and UNEP in 2022, to help leverage the climate action agenda. This is essential if low- and middle-income countries are to meet their legally binding Paris Agreement commitments, adopted by 196 Parties at COP21 in Paris in December 2015, to limit global warming to 1.5°C by cutting greenhouse gas (GHG) emissions as soon as possible.
But making use of cutting-edge science and innovation can often come with a high price, especially for developing countries. This is where the Climate Investment Funds (CIF) plays an important role, through investment programs that support new innovations.
CIF investments help to bridge the gap between widely available, cheaper but dirty, obsolete technology, and more expensive but cleaner new technology. One way that CIF is doing this is through its Clean Technology Fund (CTF). CTF enables clean energy transformation in developing countries. It provides resources to scale up low-carbon technologies with significant potential for long-term GHG emissions savings. The program supports a wide array of clean technologies across different areas, including renewable energy, energy efficiency, and clean transport.
As science has shown, coal is the most carbon-intensive fossil fuel and phasing it out is a crucial step in achieving the reduction in emissions needed to limit global warming to 1.5°C. One way in which CIF is helping to address the problem of the lagging coal-to-clean transition is through the Accelerating Coal Transition (ACT) investment program, established in early 2021.
ACT allows CIF to help developing countries adopt cutting-edge technologies, even if these start out being more expensive than fossil fuels. ACT offers financial resources at scale at a time when countries are already facing strong pressures on their public finances. The hope is that ACT will have a powerful demonstrative effect, testing different models and approaches that can be applied more widely, further accelerating the rate and scale of the energy transition.
Another way that CIF is helping to bring new technology to tackle the climate crisis is through its Pilot Program on Climate Resilience (PPCR). PPCR project invests in strengthening observation and monitoring networks, laying the essential groundwork for improved development and delivery of hydromet and climate services (HMCS). Through PPCR, CIF has invested US 222 million in 12 climate services projects implemented by its partners—the African Development Bank, the Inter-American Development Bank, and the World Bank.
With the effective use of cutting-edge science and innovation, coupled with concessional financing for developing countries, CIF can help accelerate the transition, to the benefit of all. As Mafalda Duarte, CEO of CIF stated at the opening of COP26 last year, “our shared climate future depends on it.”
