The multilateral Climate Investment Funds (CIF) has announced an investment of up to $1 billion to accelerate the development of technologies aimed at cutting industrial sector emissions in developing countries. The initiative is designed to help decarbonise critical industries such as cement, steel, iron, and chemicals, which account for approximately 25% of global greenhouse gas emissions.
The funding will be provided through CIF’s $8.6 billion Clean Technology Fund and is intended to spur collaboration between public and private organisations. By offering investment at more affordable rates and taking on higher risks, CIF aims to attract additional investors to support climate-friendly industrial practices.
“The future depends on decarbonising heavy emitting sectors,” said CIF Chief Executive Tariye Gbadegesin. “To meet our climate goals, we need industry’s emissions to decline by 20% by 2030 and 93% by 2050.”
The programme, first announced at global climate talks in 2022, will officially open for funding applications, with expressions of interest due by 17 January 2025. The goal is to fund cleaner industrial processes that will play a critical role in global efforts to meet climate targets.
As demand for materials like cement, steel, and iron grows due to the transition to a low-carbon economy, reducing emissions in these sectors becomes increasingly urgent. Finance will be a central theme at the upcoming COP29 talks in Azerbaijan, where developing countries are expected to push for an annual commitment of $1 trillion or more from wealthier nations.
Kerry McCarthy, Britain’s Minister for Climate at the Department for Energy Security and Net Zero said, “Speeding up the decarbonisation of steel, iron, and cement in emerging markets around the world is how we will reduce global emissions and accelerate the clean energy transition.”
