The multilateral Climate Investment Funds announced that it will deploy up to $1bn in funding to decarbonise heavy-emitting industries this month, launching a call to developing countries to participate.
The industrial sector, including cement, steel, iron, and chemicals, currently represents one-quarter of global greenhouse gas emissions—a figure that is only set to rise in the coming decades, partly due to rising demand to support the renewable energy transition.
“The future depends on decarbonizing heavy emitting sectors. To meet our climate goals, we need industry’s emissions to decline by 20% by 2030 and 93% by 2050,” said Tariye Gbadegesin, CEO, Climate Investment Funds.
“Crucially, industrial decarbonization and green supply chain jobs can drive a just and prosperous transition. This is what CIF was created for, to accelerate technologies of the future to solve our greatest climate challenges,” added Gbadegesin.
This funding announcement is part of CIF’s Industry Decarbonization investment program, which it said encourages collaboration among businesses, governments, and multilateral development banks.
Indeed, for the first time, joint expressions of interest between public and private sector organisations will be accepted.
CIF also detailed that its concessional funding will be deployed through partner multilateral development banks.
The Industry Decarbonization program reportedly includes a dedicated private sector set-aside: up to 100 per cent of total financing can be assigned to projects led by the private sector or that crowd in significant private sector co-investments, with a minimum allocation of 50 per cent.
Commenting on the $1bn funding, Anthony Nyong, Director of Climate Change and Green Growth, African Development Bank, said: “The African Development Bank is fully committed to Africa’s Industry Decarbonization agenda, in line with our High5 priority focus area on “Industrialize Africa” and as indicated in our 2021-2030 Strategic Framework on Climate Change and Green Growth. In this regard, we are keen to partner with CIF in advancing industry decarbonization across developing nations, particularly in the African continent.
Nyong said the continent holds “immense potential for green industrialization,” which he said presents a “unique” opportunity to lower carbon emissions in Africa.
“By promoting industry decarbonization now, we can chart a sustainable course that fuels economic growth, leading to low-carbon development and net zero future. Through collaboration with governments and the private sector, we are committed to accelerating the adoption of low-carbon technologies and ensuring inclusive, green job creation.”