The Climate Investment Funds (CIF) has announced its plans to raise USD $500 million this year or next by issuing a green bond to finance renewable energy projects. The USD $8 billion fund gets most of its money from development banks and donor countries and finances more than 300 environmentally-friendly energy projects in some 72 countries. Green bonds are fixed income securities that raise capital for projects with environmental benefits.
“U.S., European, and Japanese investors are interested in green bond offerings,” said Mafalda Duarte who did not offer further details on where the CIF plans to issue the green bond. The CIF will use the proceeds to fund projects that could range from promoting the transition to renewable energy and improving resilience to climate change to stabilizing power grids amid the growing use of intermittent sources of power.
The CIF also sees opportunities in electrified transport, Ms. Mafalda said, and stressed the need to cut the cost of concentrated solar power technology, which uses mirrors or lenses to concentrate a large area of sunlight, and to promote the integration of regional energy markets.
These issues were examined at a conference on January 28-29 marking the CIF’s tenth anniversary under the banner of “Power of 10: Shaping the Future of Climate Action”. The conference was held in the south-eastern Moroccan city of Ouarzazate, where the CIF contributed USD $535 million to building a 580 megawatt (MW) solar power plant, the world’s largest.
In CIF’s press release for the conference, the organization stated that new independent reports undertaken by the global consulting firm Itad and leading think tank Overseas Development Institute concluded that “the $8 billion Climate Investment Funds (CIF) is unique among climate finance institutions and drives fundamental change in how countries tackle climate change” and that the “analysis comes at a time of renewed urgency for forward-thinking financing solutions to the climate crisis.”
The CIF have been successful in influencing government policy priorities. According to the reports, CIF financing has persuaded national priorities, planning, and institutions to implement “mainstream climate change” policies, along with increased private sector investment in climate change mitigation and clean energy.