The Climate Investment Fund (CIF) has chosen Brazil, Egypt, Mexico, Namibia, South Africa, Türkiye, and Uzbekistan to participate in the $1bn Industry Decarbonization investment programme.
With an aim to curb industrial greenhouse gas emissions in developing nations, this initiative marks the first global concessional finance effort dedicated to fostering low-carbon industrial transformation and the creation of green jobs.
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The selected countries are poised to enhance their economic competitiveness and entry into the green industrial goods market, which is expected to increase to $2tn by 2030.
The seven nations will work alongside multilateral development banks and private sector entities to craft investment plans.
These strategies will seek endorsement from CIF’s governing board, paving the way for access to highly concessional funding.
Such capital will be instrumental in expanding clean and circular technologies, including green hydrogen, waste heat recovery, and low-carbon materials such as steel, aluminium, and cement, which are vital for the global energy transition.
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By GlobalDataThese countries were chosen from a group of 26 applicants by CIF’s Governing Board, following a thorough assessment by an independent panel of experts.
The selection criteria included robust private sector involvement, institutional preparedness, and a solid pledge to industrial decarbonisation.
Following the programme’s design, the invited countries have initiated collaboration with the private sector.
The programme allows for up to 100% of the financing to be allocated to private sector-led initiatives or those drawing significant private co-investments, with a compulsory minimum of 50%.
Moreover, the programme prioritises workforce protection and retraining, ensuring support for vulnerable communities and preparing workers for sustainable, green job opportunities.
CIF CEO Tariye Gbadegesin said: “The global race to decarbonise industry has begun, and emerging markets are out front.
“Decarbonising Industry is about more than emissions – it’s about securing long-term prosperity and the jobs of tomorrow. And it’s about producing the low-carbon industrial inputs that are urgently needed to expand renewable energy capacity and power the global economy.”
The Industry Decarbonization investment programme is a component of CIF’s $9bn Clean Technology Fund (CTF), which is supported by the CIF Capital Markets Mechanism (CCMM).
This novel tool is designed to mobilise private capital for sustainable, inclusive, and resilient development aligned with countries’ goals.
The CTF is known for its high co-financing ratios and private sector participation, with every $1 from CIF expected to catalyse $12 in financing.
