Clean Technology Fund (CTF)
The Clean Technology Fund (CTF) is a Climate Investment Fund (CIF) administered by Multilateral Development Banks (MDBs) and is designed to finance demonstration, deployment and transfer of low emissions technologies to middle-income countries.
Middle-income countries draw up ‘country plans’ in collaboration with MDBs to illustrate how CTF funds will be used in major sectors. Projects that are eligible for financing should build upon existing country owned strategies and be complimentary to other initiatives.
- Renewable energy: concentrating solar power, solar photovoltaic, geothermal, wind, small hydro
- Sustainable transport: bus rapid transit, public transportation, high-efficiency vehicles, modal shifts
- Energy efficiency: industry, building, district heating, municipal, lighting, appliances
Monitoring and Evaluation takes place through the MDBs' own independent channels. Reporting to the Trust Fund Committee is required annually as is a full independent evaluation after 3 years.
Observers to the fund are drawn from UN agencies, Global Environment Facility (GEF), civil society and the private sector. Observers do not actively make decisions on the investment fund, however they are present at meetings and can make contributions from the ‘floor’ as well as recommend experts for consultation purposes.
According to the CTF website, as of January 2014, 41 projects were approved for receiving a total of $2.3 billion in CTF funding, attracting an esitimated $19.2 billion in co-financing and saving 600 million tons of CO2 emmission.
The CTF countries are: Chile, Colombia, Egypt, India, Indonesia, Kazakhstan, Mexico, Morocco, Nigeria, Pihilippines, South Africa, Thailand, Turkey, Ukraine and Vietname, as well as countries from the Middle East and North Africa Region (Egypt, Jordan, Morocco, Tunisia).
CIFs are designed to leverage private sector financing by demonstrating and deploying new technologies and investments – so reducing some of the initial risks for the private sector. For every US$1 of CIF, US$8.4 is leveraged from other sources so helping to ‘bridge the financing and learning gap between now and a post-2012 global climate change agreement’. The funds were approved by the World Bank’s Board of Directors on 1 July 2008.
Donor countries include (all figures in US$): Australia (135m), Canada (97m), Denmark (38m), France (300m), Germany (813m), Japan (1.2bn), South Korea (3m), Netherlands (76m), Norway (194m), Spain (152m), Sweden (92m), Switzerland (20m), UK (1.414bn) and the USA (2bn).