Brazil and others will use a $1 billion program for industry decarbonization
Brazil, Egypt, and Mexico are part of a group of seven middle-income nations selected by the Climate Investment Funds, a multilateral lender, to access a $1 billion program aimed at reducing emissions from their industrial sectors.
Namibia, South Africa, Turkey, and Uzbekistan have been selected from 26 applicants to collaborate with investors on developing a comprehensive plan to decarbonise the sector, responsible for a third of global emissions.
All countries will have the opportunity to access affordable financing through CIF’s Industry Decarbonization Investment Program, with every $1 anticipated to attract $12 in financing from additional sources, such as development banks and the private sector.
The industry programme, part of CIF’s $9 billion Clean Technology Fund, permits financing of up to 100% for projects led by the private sector or those that secure substantial private co-investments, with a minimum allocation set at 50%.
“Decarbonizing Industry encompasses more than just emissions; it is essential for ensuring long-term prosperity and the jobs of the future,” stated CIF Chief Executive Tariye Gbadegesin.
“She added that it is essential to produce the low-carbon industrial inputs required to enhance renewable energy capacity and drive the global economy.”
Established in 2008, CIF has secured $12.5 billion in pledged support from various countries. It offers early-stage grants and highly concessional loans designed to attract funding from other investors who may have a lower risk tolerance.
