The World Bank approved on Tuesday the creation of the Climate Investment Funds (CIF), a pair of international investment instruments designed to help developing countries mitigate rises in greenhouse gas (GHG) emissions and adapt to climate change.
Two trust funds will be created under the Climate Investment Funds; total investments, based on preliminary indications from donor countries, are targeted to reach 5 billion dollars, according to a statement released by the Bank.
One of the funds, the Clean Technology Fund, will provide new, large-scale financial resources to invest in projects and programs in developing countries which contribute to the demonstration, deployment, and transfer of low-carbon technologies. The projects or programs must have a significant potential for long-term greenhouse gas savings.
The second fund, the Strategic Climate Fund, will be broader and more flexible in scope and will serve as an overarching fund for various programs to test innovative approaches to climate change. The first such program is aimed at increasing climate resilience in developing countries.
"The Bali Action Plan on Climate Change calls for the international community to do more in providing financial resources and investments that support action on mitigation, adaptation, and technology cooperation," said World Bank Group President Robert B. Zoellick.
"These Climate Investment Funds are part of the World Bank Group's expanded response to the challenge of climate change," he said, noting the funds will have a significant impact in generating even more financing for climate action.
Source:Xinhua
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