Taking stock – 10 years of the climate investment funds

By Ute Collier On 01.02.2019 Influence & Impact

With 3 billion people still lacking access to clean cooking and almost one billion people without electricity, huge amounts of funding are needed to close the energy access gap. The Climate Investment Funds (CIF) are one of the avenues for funding this big challenge.

Practical Action has a seat as an observer on the Scaling Up Renewable Energy in Low Income Countries Programme (SREP) Committee of CIF and I just spent a week in Morocco attending a Committee meeting, as well as the CIF@10 anniversary conference. CIF was established in 2008 to help developing countries invest in low-carbon and climate-resilient development. It has had some impressive achievements – $8bn contributions received (with the UK as the largest donor country), US $1.2bn allocated to climate resilience, 11 MtCO2 saved per year and 185,000 people provided with improved access to energy.

With 3 billion people still lacking access to clean cooking and almost one billion people without electricity, huge amounts of funding are needed to close the energy access gap. The Climate Investment Funds (CIF) are one of the avenues for funding this big challenge.

Practical Action has a seat as an observer on the Scaling Up Renewable Energy in Low Income Countries Programme (SREP) Committee of CIF and I just spent a week in Morocco attending a Committee meeting, as well as the CIF@10 anniversary conference. CIF was established in 2008 to help developing countries invest in low-carbon and climate-resilient development. It has had some impressive achievements – $8bn contributions received (with the UK as the largest donor country), US $1.2bn allocated to climate resilience, 11 MtCO2 saved per year and 185,000 people provided with improved access to energy.

Of course, CIF is not without its problems. Specifically, SREP has been slow off the ground, with just 4 out of a targeted 21 projects on energy access operational at present. Its total available funding of US $750 million is a drop in the ocean compared to what is needed for energy access. Furthermore, there is some uncertainty about the future of the CIF, with some donor countries insisting that the Green Climate Fund (GCF) should be the only climate financing mechanism. However, as the GCF lacks resources and is still not working effectively, this seems like throwing the baby out with the bathwater. We cannot afford to let politics get in the way of effective climate action.