Clean Technology Fund

Description

The Clean Technology Fund (CTF) was created in 2008 to establish new markets and scale-up clean technology, resilient infrastructure, and sustainable forest management in middle- and low-income countries. Since then, the U.S. has contributed $2 billion to the CTFs.

Use of Funds

The CTF works exclusively with the Multilateral Development Banks (MDBs), providing investments at scale to mobilize the collective technical capacity and financial strength to support frontier/innovative investments, business models, policy reforms, and market creation to drive transformational impact in developing countries. The CTF’s financing tools include concessional debt, equity, guarantees, local currency financing, and grants to allow the MDBs to move into new markets, take on more risk, and mobilize billions in additional private sector investment.

Justification

• The CTF portfolio consists of 104 projects in 21 countries ($4.8 billion in the Clean Investment Fund).
  • 21.8 MTCO2e per year greenhouse gas emission reductions from 48 projects.
  • $22.9 billion co-financing leveraged for 63 projects.
  • 8.2 G.W. of installed renewable energy capacity from 36 projects.
• Investments have resulted in a cumulative 63.7 million tons of CO₂ in GHG emissions reductions since the first projects were approved in 2009.
• CTF funded projects have installed 5,692 M.W. of renewable energy capacity.
• The CTF is underpinned by an effective administrative and governance structure that is efficient and highly agile, including these important structures:
  • Representative governance structure.
  • A platform for observers.
  • Emphasis on gender equality.
  • Support to Indigenous Peoples and local communities through a dedicated grant mechanism.