US$568 million loan support to CIF’s Clean Technology Fund (CTF)

United States Treasury has supported the Climate Investment Funds (CIF) through a new US$568 million loan to CIF’s Clean Technology Fund (CTF).

The Concessional Financing Facility (CTF), amounting to US$7.9 billion, offers concessional and risk-bearing finance to facilitate groundbreaking investments in clean energy and technology. With an impressive 1:11 co-financing ratio, the newly secured US$568 million loan from the U.S. Treasury has the potential to leverage up to US$6.25 billion in additional funding. This collaborative effort involves CIF's partner multilateral development banks, recipient countries, and the private sector, focusing on projects with substantial prospects for long-term reduction in greenhouse gas emissions. Beyond the USA, contributing countries to CTF include Australia, Canada, France, Germany, Japan, Spain, Sweden, and the United Kingdom.

The CIF Capital Market Mechanism (CCMM) is set to allocate US$500 million annually for a decade to support clean technology initiatives in low- and middle-income countries. This infusion of funds will enhance ongoing CIF initiatives, such as the recently launched CIF Industry Decarbonization investment program, and advance comprehensive strategies for promoting clean and equitable transitions in developing nations