The role of the Climate Investment Funds in the changed context of climate finance

The report evaluates the role of the Climate Investment Funds (CIF) in the current climate finance environment, arguing that its programmatic approach, risk appetite, and partnership with Multilateral Development Banks (MDBs) provide unique value. It highlights the CIF's success in deploying concessional finance and attracting private investment, while recommending that the fund remain operational to bridge investment gaps as the Green Climate Fund (GCF) scales up. The study suggests strengthening the CIF's unique characteristics and pursuing complementary synergies with the GCF to support the implementation of Intended Nationally Determined Contributions (INDCs).

• The CIF has been the most rapid and largest provider of multilateral concessional climate finance, accounting for approximately 45% of external concessional finance managed by MDBs in 2013-2014 and roughly 60% of total finance committed by eight multilateral climate funds over a ten-year period.
• The CIF's programmatic national investment planning process is a unique feature that provides predictability for recipients and implementing partners, which is particularly critical for the development of first-of-a-kind projects like climate-resilient infrastructure.
• The CIF demonstrates a high risk appetite, allocating about 36% of its approved funding to risky or unproven technologies, such as Concentrated Solar Power and geothermal, in low- and middle-income countries. It has provided up to 55% of international public finance for the earliest, riskiest stages of geothermal projects.
• The CIF has led other multilateral climate funds in driving private sector investment in adaptation, forestry, and mitigation, allocating USD 2.3 billion (28% of its financing) to private sector investments. However, it has struggled to attract private investment in less developed countries and specifically within forestry and adaptation due to policy weaknesses and geographic restrictions.
• The CIF's partnership with MDBs allows recipient countries to access diverse expertise and coordinated financing under a common framework, while enabling MDBs to mainstream climate operations and experiment with new financing approaches.
• The CIF offers a diverse range of financial instruments—including equity, guarantees, local currency hedging, and reimbursable finance for adaptation—that differentiates it from other concessional sources, though some instruments remain underutilized.

APA

Climate Policy Initiative (2016). The role of the Climate Investment Funds in the changed context of climate finance. https://www.climatepolicyinitiative.org/publication/role-climate-investment-funds-meeting-investment/

Chicago

Climate Policy Initiative. The role of the Climate Investment Funds in the changed context of climate finance. 2016. https://www.climatepolicyinitiative.org/publication/role-climate-investment-funds-meeting-investment/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The role of the Climate Investment Funds in the changed context of climate finance |date=3 June 2016 |url=https://www.climatepolicyinitiative.org/publication/role-climate-investment-funds-meeting-investment/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2016role, author = {{Climate Policy Initiative}}, title = {{The role of the Climate Investment Funds in the changed context of climate finance}}, institution = {Climate Policy Initiative}, year = {2016}, month = jun, url = {https://www.climatepolicyinitiative.org/publication/role-climate-investment-funds-meeting-investment/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }