Multilateral Roundtable Meeting: The World Bank Group's Climate Investment Funds
In an effort to address climate change as a development issue, the World Bank Group in cooperation with the regional development banks, approved the creation of the Climate Investment Funds. The initiative hopes to encourage developing countries to adopt greener and more energy efficient standards. On August 4, 2009 the Bretton Woods Committee hosted a Multilateral Roundtable meeting on this issue in which speakers and participants explored the implication of climate change and the potential effects of the new initiative and investments.
Sector Director, Environment Department, World Bank
Warren Evans discussed the World Bank's Climate Investment Funds and its two initiatives: the Clean Technology Fund and the Strategic Climate Fund. Both of these funds are comprised of grant, equity, and soft loans that are complimented by other multilateral financial mechanisms. The Clean Technology Fund provides concessional finance for countries that have an investment plan to lower carbon output. The Strategic Climate Fund focuses on pilot initiatives to demonstrate how countries can move toward climate resilient growth.
Lisa Da Silva
Clean Technology Fund (CTF) Coordinator, IFC
Lisa Da Silva explained how the IFC has been working on private sector proposals in order to transform power, transportation, and energy use, ideally industry-wide, in middle-income countries. The Clean Technology Fund aims for minimal concessions to make change achievable in these countries. The venture capital investments used for projects in the Clean Technology Fund are often loans to offset the costs private developers and suppliers face as early market entrants.
Climate & Energy Advisor, Office of the Environment and Energy, U.S. Treasury Department
Dan Riley described the domestic and international policy work of the Office of the Environment and Energy. The department has developed the U.S. agenda for G-7 and G-20 meetings and helped make the climate budget more efficient and effective. The current administration has plans to fulfill the initiative for Climate Investment Funds. Mr. Riley stressed that collaboration between regional development banks, bilateral donors, and recipients is key in successful climate policy change.