Climate Investment Funds

Document Summary: 

Organizational profile: Since the CIF was established in 2008, 14 donor countries have contributed over $8 billion in support of scaling up mitigation and adaptation action in developing and middle-income countries. These resources are held in trust by the World Bank, and they are disbursed as grants, highly concessional loans, and risk mitigation instruments to recipient countries through multilateral development banks (MDBs). The CIF is the only multilateral climate fund to work exclusively with MDBs as implementing agencies. As implementing agencies, the MDBs use CIF funds transferred by the Trustee in accordance with their own fiduciary framework, policies, guidelines, and procedures.

The Pilot Program for Climate Resilience (PPCR) supports developing countries and regions in building their adaptation and resilience to the impacts of climate change. First, the PPCR assists governments in integrating climate resilience into strategic development planning across sectors and stakeholder groups. Second, it provides concessional and grant funding to put the plans into action and pilot innovative public and private sector solutions. The PPCR invests in some of the world’s most vulnerable countries. At the frontline of climate change are small island developing states (SIDS). The PPCR supported SIDS, with $250 million for nine Caribbean and Pacific island nations, 20 percent of PPCR resources. The programs has five priority sectors: Agriculture, sustainable land, and water management, Hydro-meteorological (hydromet) and climate services, Infrastructure, Coastal zone management, and Adaptation Financing

The Forest Investment Program (FIP), a funding window of the CIF, provides direct investments to benefit forests, development and the climate. The FIP supports developing countries’ efforts to reduce deforestation and forest degradation (REDD) and promotes sustainable forest management that leads to emission reductions and the protection of carbon reservoirs. It achieves this by providing scaled-up Financing to developing countries for readiness reforms and public and private investments, identified through national REDD readiness or equivalent strategies. The FIP has two programs: the Dedicated Grant Mechanism, and Private Sector Set Asides.  The Dedicated Grant Mechanism for Indigenous Peoples and Local Communities (DGM) is designed and led by representatives of indigenous peoples groups and local communities in FIP countries to enhance their capacity to engage in and contribute to local, national, and international REDD+ dialogue and actions. The Private Sector Set Asides (PSSAs) allocate concessional Financing on a competitive basis to projects that engage the private sector in sustainable forestry (FIP), climate resilience (PPCR), and energy access through renewable energy in low income countries (SREP).

Financing Instrument: Grants, Low-interest Loans

Project scale: Within the FIP, as of June 30, 2019, $685.8 million has been endorsed by the FIP Sub-Committee as indicative allocations to the participating countries, totaling 53 projects included in investment plans, DGM, and the FIP Private Sector Set Aside (PSSA). Recent project funding has ranged from USD 4.5 million to USD 19.4 million.

Within the PPCR, as of June 30, 2019, USD 992.7 million has been endorsed by the PPCR Sub-Committee as indicative allocations to the original pilot countries, totaling 65 projects included in SPCRs and the PPCR Private Sector Set-Aside (PSSA).

Applicable geographical regions/country groups: Global

Eligibility Criteria: Official Development Assistance (ODA) eligibility criteria according to OECD DAC guidelines alongside an active MDB country program (for this purpose, an “active” program means that an MDB has a lending program and/or on-going policy dialogue with the country).

All proposals for the Country Grants within the DGM should be located in one or more FIP pilot countries. Not-for-profit organizations of Indigenous Peoples or Local Communities that wish to apply for the DGM grants should be non-state actors, based in a FIP pilot country.

Application guidelines: When a country or region is invited to join the CIF, it engages in a multi-stage process to plan and implement strategic, climate-smart investments.

Stage 1- Country Programming: the national government, together with MDBs and stakeholders from civil society, indigenous peoples, and the private sector, designs a CIF investment plan that aligns with national development and climate strategies and goals.

Stage 2- Project Preparation: CIF stakeholders continue to work together to prepare the projects specified in the investment plan.

Stage 3- Implementation and Completion: As projects are approved, they are implemented with cintinuous stakeholder engagement to assess progress and share lessons learned along the way.

For the DGM, the National Executing Agency, following the National Steering Committees' approval, issues a call for proposals at least once in a year, on its own website, the FIP website, and through other media, as appropriate for the local context. It will include among other things: (i) eligibility criteria for applicants; (ii) eligible activities; (iii) decision-making procedure and timeline; and (iv) guidance for submission of proposals. Applicants submit a Brief Project Proposal in response to the call for proposals.

     i. if the funding requested is below $50,000, the NEA will screen proposals using the basic requirements for country grants (see section A above), including any country-specific criteria established for this purpose. The NEA may also conduct site visits with applicants and assist with the development of their plans, including the formation of partnerships. These proposals will then be included in a list for the NSC to review and consider for funding. A Brief Project Proposal will be sufficient for all proposals under $50,000; or,

     ii. if the proposal meets the DGM basic requirements for country grants and the requested funding is more than $50,000 but below $500,000, a request for submission of a Full Project Proposal is sent to the applicant; or,

     iii. if there is insufficient information in the proposal for a decision, a request for additional information is sent to the applicant; or, iv. if the proposal does not meet the DGM criteria for funding, the NEA will include it in the list of proposals not recommended for funding, citing the reasons for the recommendation, for a final decision by the NSC.

Applicants will be requested to submit a Full Project Proposal for review when the grant amount requested is greater than $50,000 and up to $500,000.

The NEA will screen all proposals to ensure that they meet the basic requirements for country grants proposals (see section A above). The NEA will prepare a final list of complete proposals that meet the criteria for funding, for the NSC’s review and decision. The NSC will meet to review the list of proposals prepared by the NEA and make a final decision regarding funding of proposals.

Publication Date
Thursday, 01 April 2021
Applicable location
Africa
Americas
Asia
Europe
Oceania
Topic/Theme
Climate change
REDD+
Forest conservation and management
Climate change
Database
Financing opportunities