CLEANTECHNOLOGYFUNDThe $5.3 billion Clean Technology Fund (CTF), is a funding window of the CIF. It is empowering transformation in middle income and developing countries by providing resources to scale up the demonstration, deployment, and transfer of lowcarbon technologies with a signi�cant potential for long-term greenhouse gas emissions savings.

Every CTF country has tailored its CTF investment plan to align with national development goals and to serve as a framework to coordinate activities across institutions and stakeholder groups. To date, $3.4 billion (over 60% of CTF funding) is approved and under implementation for 71 projects expecting $32 billion in co-�nancing.

CTF concessional �nancing, channeled throughpartner multilateral development banks, isboosting investor con�dence and attractingsigni�cant co-�nancing from other sources by:

Driving down technology costs Supporting �rst-movers Bridging �nancing gaps Creating markets

Innovating private sector �nance

5x GREATERAVERAGE CTF INVESTMENT SIZE COMPARED TO OTHER MITIGATION-FOCUSED FINANCING INSTRUMENTS2

RENEWABLE ENERGY

WIND SOLAR GEOTHERMAL

TRANSPORT

BUS RAPID TRANSIT PUBLIC TRANSPORTATION EFFICIENCY VEHICLES MODAL SHIFTS

ENERGY EFFICIENCY

INDUSTRY BUILDING DISTRICT HEATING MUNICIPAL HOUSEHOLD

BILLION TONS OF1.5 CO2 CO2

GHG EMISSIONS REDUCTIONS EXPECTED FROM ENDORSED CTF INVESTMENTS

= CARS OFF THE ROAD315 MILLION

ChileColombiaEgyptIndiaIndonesiaKazakhstanMexicoMoroccoNigeriaPhilippinesSouth AfricaThailandTurkeyUkraineVietnam

Middle East and North Africa Region (Algeria, Egypt, Jordan, Libya, Morocco, Tunisia)

CTFCOUNTRIES

$5.3DEDICATED PRIVATE SECTOR FUNDING

$508.5MILLION35 countries across Africa, Asia, Latin America and the Caribbean, and MENA region

BILLION

SCALING UP THE DEMONSTRATION, DEPLOYMENT, AND TRANSFER OF LOW CARBON TECHNOLOGIES

Global warming can be limited by reducing or avoiding greenhouse gases stemming from human activities—particularly in the energy, industry, transport, and building sectors which together account for over 75% of global emissions1. Low carbon technologies are key to achieving mitigation while creating new economic opportunities.

Established in 2008, the $8.1 billion Climate Investment Funds (CIF) address these challenges by delivering investments at scale to empower climate-smart transformation.

THE CIF • 4 FUNDING WINDOWS • $8.1 BILLION PLEDGED • $58 BILLION CO-FINANCING • CLIMATE-SMART DEVELOPMENT IN 72 COUNTRIES

CTF IN ACTION

DRIVING DOWN TECHNOLOGY COSTS IN MOROCCO

In Morocco, $435 million in CTF concessional funding, channeled through the African Development Bank (AfDB) and World Bank, is supporting the phased construction of the Noor CSP plant. It is Morocco’s first utility-scale solar energy complex and a critical step of the Moroccan Solar Energy Program, which aims to install 2 GW of solar power by 2020. The Noor CSP complex expects to achieve over 500 megawatts (MW) installed capacity, reduce carbon emissions by 760,000 tons per year, and supply power to 1.1 million Moroccans by 2018. Project developer, ACWA Power, Saudi Arabia, began Phase 1 construction in 2013, and the first 160 MW solar power station is scheduled to come into operation by the end of 2015. The low-cost debt provided by the CTF ($197 million) and other international financial institutions reduced Phase 1 project costs by about 25 percent compared to financing available from commercial banks in the market. It contributed to a winning bid that was 25 percent lower than initial cost projections: $0.18 per kilowatt-hour (kWh) compared to $0.24 per KWh. This will help reduce strain on public finances by lowering the amount of subsidy that the Moroccan government required, from $60 million to $20 million per year.

SUPPORTING FIRST-MOVER IN THAILAND

A major focus of Thailand’s Renewable Energy Accelerator Program, a private sector initiative under Thailand’s CTF investment plan, was to support the development of the Thai solar sector. As part of this effort, the International Finance Corporation (IFC) blended $8 million in commercial financing from its own resources with $4 million in concessional finance from the CTF to support expansion of one of the early solar PV developers in Thailand, the Solar Power Company Group (SPCG).

Financing from the CTF and IFC enabled SPCG to mobilize additional financing from local banks and bring 12 MW in utility-scale solar power capacity over the finish line. It also helped reduce long-term project finance risks for lenders and sent positive signals to the local financial markets for utility-scale solar. Today, SPCG is one of Thailand’s largest solar farm developers with over 250 MW installed solar capacity and plans to expand beyond Thailand.

For her pioneering efforts that have helped transform Thailand’s solar power sector, in December 2014 the United Nations Framework Convention on Climate Change (UNFCCC) honored Dr. Wandee Khunchornyakong, CEO of the SPCG, with a prestigious Momentum for Change (M4C) award. She is one of three winners in the Women for Results category, which recognizes projects that demonstrate the critical leadership and participation of women in addressing climate change.

BRIDGING FINANCING GAP IN INDONESIA

Indonesia aims to increase the share of renewable energy in its primary energy supply from 5 percent in 2010 to 25 percent by 2025. Current installed geothermal capacity is 1.3 GW, less than 5 percent of Indonesia’s total geothermal potential, which is estimated at more than 29 GW (equivalent to 40 percent of the global geothermal resource base). CTF funding is facilitating commercial lending that is expected to lead five geothermal projects totaling 750 MW to financial closure.

CTF $80 million, administered through the Asian Development Bank (ADB), is supporting the 320 MW Sarulla geothermal power project, the largest single-contract geothermal power project in Indonesia. Upon completion in 2018, it will avoid 1.3 million tons of CO

2 emissions

per year and provide 500,000 households with access to clean energy. Given the few precedents in the sector and constraints in the capital markets, the Sarulla geothermal project required an innovative finance structure to help address the risk profile of a

=CURRENT GLOBAL INSTALLED CAPACITY4 GW

1/41.2 GW concentrated solar power

CONTRIBUTING TO

EXPECTED

OVER

MILLION CTF ALLOCATIONS

$945

first-mover private sector investment. Concessional funding from the CTF helped bridge the financing gap between the commercial lenders and the equity investors and augmented the project’s debt capacity. It also provided flexibility in connection with the timing of funding and payment under those facilities.

CREATING MARKETS IN TURKEY

With a rapidly expanding economy and growing energy demands that are met in large part by energy imports (costing $60 billion or 7.5 percent of GDP in 2012), Turkey is working to expand domestic energy production, including renewable energy, and to increase energy efficiency. By the end of 2014, the European Bank for Reconstruction and Development and World Bank Group mobilized CTF $320 million in Turkey. Of this, $270 million went to local banks and leasing companies to support establishing products aimed at scaling up sustainable energy finance. CTF support was directed at technical training to build up the business and at concessional financing to offer more affordable blended interest rates for borrowers to invest in renewable energy and energy efficiency initiatives.

In the first phase alone, $170 million of CTF investment resulted in substantial investments of nearly $1.4 billion for 430 sub-projects financed through local financial institutions. CTF-supported project investments are contributing to energy savings of approximately 902,000 tons of oil equivalent or $568 million of avoided cost of imported oil annually.

INNOVATING PRIVATE SECTOR FINANCE IN MEXICO

The $235 million Utility-Scale Renewable Energy Program-Geothermal under the CTF’s Dedicated Private Sector Programs (DPSP) focuses on mitigating the drilling and resource risks for geothermal project development in several regions of Africa, Asia, and Latin America and the Caribbean. The Inter-American Development Bank is channeling $20 million from this program (along with $34.3 from Mexico’s CTF investment plan) to support Mexico’s national development bank, NAFIN, in implementing a geothermal financing and risk transfer facility designed to scale up investments in geothermal power generation projects.

Mexico ranks fourth in the world in geothermal electricity production at 958 MW of installed capacity. Yet this represents only 2.5 percent of the country’s total power generation capacity, and it is operated entirely by the state electric company, the Comisión Federal de Electricidad, with no participation of the private sector. The facility will provide a range of financial structures tailored to meet the specific needs for each project’s stage of development, including risk mitigation mechanisms and various forms of support for exploration, drilling, field development and construction, and operation phases. Expected results included 300 MW of new geothermal capacity and 33 million tons of CO

2 emissions reductions.

The CIF continues to test new modalities to

address barriers that hinder private sector

participation in climate action. The Dedicated

Private Sector Programs (DPSP) were created

under the CTF to finance large-scale private

sector projects with greater speed and efficiency

in response to market demand, while maintaining

country priorities. To date, a total of $508.5

million has been allocated to programs in

geothermal power, mini-grids, mezzanine finance,

energy efficiency, solar PV, and early-stage

renewable energy.

“When I started to develop [my] first solar farm project in Thailand, no bank here would finance

the project until IFC agreed to invest in it. With the CTF, banks believed in the project, financing

it with a better interest rate.”

Wandee Khunchornyakong CEO of SPCG

PROJECT(S) BEING SUPPORTED BYCIF DEDICATED PRIVATE SECTOR FUNDING

CTF

LibyaAlgeria

JUNE 30, 2015

64% APPROVED AND UNDER IMPLEMENTATION

$3.4 BILLION

71 PROJECTS$32 BILLION CO-FINANCING

65%

CTF REPORTING ON RESULTS4

TARGETS

ACHIEVED SO FAR

INSTALLED CAPACITY15 GW

≈ INSTALLED POWER CAPACITY OF MOZAMBIQUE

≈ 1 MILLION CARSOFF THE ROADEVERY YEAR

≈ SAVING 6 MILLIONBARRELS OF OIL ANNUALLY

GHG EMISSION REDUCED OR AVOIDED44.6 MT CO2e/yr

ENERGY SAVINGS8,900 GWh/yr

2.7 GW 5.5 MT CO2e/yr 3,900 GWh/yr$5.3 BILLIONCTF

CIF $8.1 BILLION3

Notes1 Intergovernmental Panel on Climate Change, “Fifth Assessment Report (AR5) Synthesis Report,” 2014.2 Vivid Economics. “Learning by Doing: The CIF’s Contribution to Climate Finance,” 2014.3 Valued on the basis of the foreign exchange rate as of June 30, 2015. 4 Based on 2015 CTF Results Report. Equivalents based on EPA Greenhouse Gas Equivalencies Calculator and Climatescope 2014.

Photos: IDB, World Bank Group

@CIF_ACTION youtube.com/user/CIFACTION WWW.FLICKR.COM/PHOTOS/CIFACTION

WWW.CLIMATEINVESTMENTFUNDS.ORG

CIFNEWS@WORLDBANK.ORG

NOVEMBER 2015

ALLOCATED AND UNDER DEVELOPMENT

APPROVED ANDUNDER IMPLEMENTATION

ALLOCATED AND UNDER DEVELOPMENT

APPROVED ANDUNDER IMPLEMENTATION

- 500 1000 1500 2000 2500

Mixed Renewable

Energy

Geothermal

Solar

Wind

- 500 1000 1500 2000 2500 3000 3500 4000 4500

Energy E�ciency

Renewable Energy/Energy E�ciency

Transport

Renewable Energy

US$ MILLION US$ MILLION

CTF COUNTRIES

CTF: SCALING UP THE DEMONSTRATION, DEPLOYMENT, AND TRANSFER OF LOW CARBON TECHNOLOGIES