Climate Investment Funds to invest $1B to help green industries

The multilateral Climate Investment Funds has said it would invest up to $1 billion to help accelerate the development of technologies to cut climate-damaging industrial sector emissions in developing countries.

Ahead of the 15th Clean Energy Ministerial (CEM15) in Brazil on Thursday, CIF said in a statement the money - funded through CIF's $8.6 billion Clean Technology Fund - would help decarbonise sectors such as cement, steel, iron and chemicals.

The group, which works with the World Bank and other leading international lenders, is an important cog in development finance as it is able to take on more risk and offer money at cheaper rates, which in turn helps other investors to join in.

They currently account for around a quarter of global greenhouse gas emissions, and demand is set to grow sharply by mid-century, in part because of the need for more of all of those materials in the shift to a low-carbon economy.

"The future depends on decarbonising heavy emitting sectors. To meet our climate goals, we need industry's emissions to decline by 20 percent by 2030 and 93 percent by 2050," CIF Chief Executive Tariye Gbadegesin said.

'Decarbonisation'

To reduce the environmental impact of the sector, CIF's industry decarbonisation program will aim to fund cleaner ways of working and for the first time will accept joint pitches for investment from public and private organisations.

After first announcing the launch of the programme at global climate talks in 2022, countries are now able to apply for funds for the first time, with expressions of interest due by Jan. 17.

Finance is set to be a central focus of the next round of global talks, COP29, in Azerbaijan in November, with richer countries being pushed by many poorer countries to agree a new annual commitment $1 trillion or more.

"Speeding up the decarbonisation of steel, iron and cement in emerging markets around the world is how we will reduce global emissions and accelerate the clean energy transition," Britain's Minister for Climate, Department for Energy Security and Net Zero Kerry McCarthy said.