Climate change is a global challenge that affects everyone. The impacts are and will continue to be felt most acutely in developing countries, which have the least capacity to cope with these changes. To avoid the worst impacts of climate change on adapting to a changing planet, it is crucial to address this issue.

In the last fifteen years, there have been significant advances since the Climate Conference and the launch of the Climate Investment Funds (CIF). CIF has established a successful model for bringing together multilateral banks, governments and other stakeholders to implement transformative climate programs in developing countries. Through the financing and expansion of innovative climate projects around the world, CIF aims to leverage US$ 62 billion in co-financing, improve energy access for more than 10 million people, generate around 32.7 GW of new clean energy capacity and support more than 45 million people in adapting to the effects of climate change.

These results achieved in such a short time are possible through the partnership of all members of the CIF community, including the CIF Secretariat, the World Bank, the partners of the MDB (Multilateral Development Banks), the Trust Fund, and CIF contributing and receiving countries.

However, science warns of the need for urgent and ambitious action. It is necessary to mobilize trillions of dollars to achieve climate goals. In this process, CIF will play a key role, working in partnership with MDBs and governments to focus on innovative projects and attract significant private capital to implement them.

Accordingly, the next phase of CIF will consist of leveraging large-scale funding to address new and emerging challenges, especially in frontier areas. Program packages such as Accelerating Coal Transition (ACT), Renewable Energy Integration (REI), Nature, People and Climate (NPC), Climate Smart Urbanization (CSU) and Decarbonization of Industry (ID) will be launched. These programs will build on the success of previous generations of CIF programs such as the Clean Technology Fund (CTF), the Pilot Program for Climate Resilience (PPCR), the Forest Investment Program (FIP) and the Scaling Up Renewable Energy Program (SREP). .

Furthermore, the Council of Global Environment Facility (GEF) approved a contribution of approximately US$ 80 million (R$ 380 million) for environmental projects in Brazil. As the oldest environmental fund in the world, created in 1992 during Rio-92, this was the first time that the GEF held a board meeting outside its headquarters in Washington, in the United States.

It was also announced that the philanthropic coalition “Protecting Our Planet” (POP) will provide US$ 200 million (R$ 960 million) over the next four years to support actions related to the Brazilian government's goals to end deforestation in the Amazon by 2030, protect the biodiversity, traditional peoples and accelerate the transition to a sustainable economy.

Private resources will go directly to projects, not the government. However, they will be applied based on three thematic agendas defined by the Ministry of the Environment (MMA): Social and Environmental Development of Communities, Structuring of New Conservation Units and Institutional Strengthening and Governance.

The projects approved by the GEF cover initiatives in the areas of conservation, reforestation, sustainable use of biodiversity, buildings with zero carbon emissions, combating plastic in the oceans and integration between biodiversity and indigenous peoples and communities as a strategy for the conservation of the territory and protection of knowledge traditional.

Of note is the partnership of more than 30 years between Brazil and the GEF, which has supported the development and implementation of environmental policies through projects that provide knowledge and training to face environmental challenges.

This action emphasized the historical importance of the approval of a project by the GEF, aimed at strengthening the capacity of indigenous peoples and local communities in the Amazon and Cerrado in managing biodiversity data as a strategy to protect their territories, preserve ancestral knowledge and promote integrated management of biodiversity.

Recently, decrees related to the climate area were issued with the aim of strengthening policies to combat climate change in Brazil. These measures include the recreation of the Interministerial Committee on Climate Change (CIM) and the resumption of the National Fund on Climate Change and the National REDD+ Commission (Conaredd), which plays an important role in governance to decide the distribution of payment resources for results in the reduction of emissions.

In addition, a commission was set up for the preparation of COP30, the UN Climate Conference, which will be held in Brazil in 2025. This commission will be responsible for organizing and planning the event, which will be held in Belém, Pará. For this, measures are planned such as the renovation of an old airport in the city to receive conference participants and the dredging of the port to accommodate large ships. An investment of R$ 60 million will be made for these adaptations, with the objective of guaranteeing an adequate infrastructure for the event. In addition, the Ver-o-Peso Market, an important tourist and cultural spot in the region, will also undergo renovations, with funds from the BNDES and the Union budget.

With regard to Conservation Units, significant measures were also taken. The Serra do Teixeira National Park was created, in Paraíba, covering an area of 61 thousand hectares. This measure aims to protect and preserve the unique biodiversity present in the region, as well as guarantee the sustainable use of natural resources. In addition, the Chocoaré-Mato Grosso Extractive Reserve, located in Pará, had its area expanded, thus strengthening the protection of traditional communities and promoting sustainable management practices for natural resources.

These actions demonstrate Brazil's commitment to facing the challenges of climate change and seeking sustainable solutions. By strengthening environmental governance policies, investing in adequate infrastructure for international conferences and expanding protected areas, the country is moving towards a more sustainable and resilient future. These measures also reflect recognition of the importance of protecting biodiversity and promoting sustainable development, while seeking social equity and climate justice.

Nature-Based Solutions: An Effective, Replicable and Cost-Effective Approach

Small island nations such as Fiji and the Dominican Republic face significant challenges due to climate change, especially in relation to rising sea levels and more intense storms. However, these countries have found innovative and nature-based solutions to tackle these problems.

Coastal ecosystems such as mangroves, seagrass meadows and coral reefs play a crucial role in protecting against the impacts of sea level rise and storm surges. In addition, planting trees in the interior of islands can help reduce soil erosion, landslides and flood risks, while increasing biodiversity and productivity.

It is in this context that CIF's Investment in Nature, People and Climate Program comes into play. The program will initially allocate US$ 350 million in funding to countries including Fiji, Dominican Republic, Kenya, Egypt and five countries in the Zambezi River Basin region of Africa. The aim is to promote nature-based solutions on a large scale and holistically, working in partnership with local communities.

The vision behind this program is to invest in nature as a whole, recognizing its importance in mitigating greenhouse gas emissions, increasing climate resilience and improving the living conditions of local communities, while at the same time boosting sustainable economic growth.

The effectiveness, replicability and cost-effectiveness of nature-based solutions are highlighted, as well as the importance of these investments announced at COP27 in the need to raise funds to support more similar projects. With 55 developing countries interested in participating, it is clear that the Investment in Nature, People and Climate Program addresses an urgent need that was previously unmet.

At the heart of this program's approach is the recognition that nature-based solutions will only succeed if they are inclusive, taking into account the diverse activities that occur within a landscape and involving all affected people. By working in partnership with local communities, the program seeks to ensure that these solutions are effective, sustainable and bring tangible benefits to all involved.

In Brazil, the Ministry of Environment and Climate Change (MMA) announced the launch of the first concession notice for forest recovery and planting of native Atlantic Forest species, in partnership with the Brazilian Forestry Service (SFB) and the National Bank for Economic and Social Development (BNDES).

The notice provides for the bidding of the National Forests (Flonas) of Irati, in Paraná, and of Chapecó and Três Barras, in Santa Catarina, with the main objective of promoting the recovery of the Atlantic Forest biome in the region. The project includes an investment of R$ 430 million over the 35 years of the contract, covering forestry operations and the restoration chain. Until then, the SFB had made concessions only for sustainable management of native forests in the Amazon.

Concessions now include the recovery of degraded areas, taking advantage of carbon credits. Therefore, they seek to promote prosperity, fight inequality, reduce CO2 emissions, protect biodiversity and offer alternatives to protect local communities.

Part of the proceeds from the concession will be transferred to states and municipalities, which will be able to invest in projects that stimulate the local economy, generating jobs and income for communities close to the forests. In addition, the funds collected from forest production will be allocated to SFB, ICMBio, the governments of Paraná and Santa Catarina, and the municipalities of Chapecó, Três Barras, Fernandes Pinheiro and Teixeira Soares. The project covers the forest recovery of more than 6 thousand hectares, through the planting of native species.

The concession of forest areas can play a significant role in generating jobs and strengthening the local economy. In the Amazon, 1.3 million hectares of National Forests (Flonas) managed by the Chico Mendes Institute for Biodiversity Conservation (ICMBio) have already been granted. In addition, another 3 million hectares are planned by the end of 2024. When these areas are in production, it is expected that around 24,000 local jobs will be generated and an annual revenue of approximately R$ 120 million for States and Municipalities . These concessions have a significant impact on the local economy, which makes their potential strategic and relevant to the Investment Partnerships Program (PPI).

It is important to point out that this is the first public notice for a forest concession in the Atlantic Forest, with the particularity of including a forecast of carbon credits, as well as policies for hiring women and training in gender equality and wage equity. The SFB director emphasized that the objective is not just forest management, but the recovery of the Atlantic Forest biome, which has suffered deforestation over the last 500 years. In question, most of the areas are occupied by pine plantations, a species not native to Brazil. This resulted in the suppression of species native to the Atlantic Forest, such as araucarias, imbuias and tree ferns, many of which are endangered and their cutting is prohibited.

In Search of Alternatives: Reducing the Coal Sector's CO2 Emissions

Coal is currently the largest global source of CO2 emissions. However, for emerging economies with considerable reserves of this resource, this task becomes difficult. Coal supports jobs, generates export revenue, and fuels industry and power generation, and is a vital source for these countries. Achieving a fair and rapid transition to cleaner energy sources will require substantial funding and technical support.

At COP26 in 2021, the Accelerating Coal Transition (ACT) was launched, the first multilateral effort to promote equitable and inclusive change in the coal sector in developing countries. South Africa, India, Indonesia and the Philippines were selected as the first participants in this ambitious program.

At COP27, an important step was taken: South Africa and Indonesia will receive funding of US$ 500 million to support the transition from coal to clean energy. South Africa plans to decommission several coal-fired power plants, avoiding approximately 71 Mt of CO2 emissions. In addition, resources will be provided so that affected people have access to new job opportunities and influence the decisions taken. Indonesia, as the world's biggest coal exporter, is also committed to switching to cleaner energy sources as part of its commitment to reach zero emissions by 2060.

A just energy transition is an imperative for both climate and development and can no longer be ignored. According to the Minister of Forestry, Fisheries and Environmental Affairs of South Africa, her country needs to invest more than US$ 60 billion over the next eight years in this transition. The ACT program will play an important role in this process, contributing to a better future for the people of South Africa by meeting energy needs and promoting development.

CIF (Climate Investment Funds) is a key partner in the recently announced South Africa's Just Energy Transition Partnership (JETP), which seeks to accelerate the decarbonisation of the economy, with a special focus on electricity. CIF is playing a key role in coordinating multilateral and bilateral financial support across institutions, the private sector and philanthropy to deliver ambitious reforms based on a multi-year investment framework.

The Association agreements for the Just Energy Transition (ATEJ) represent a promising initiative that seeks to provide developing countries with the necessary resources to eliminate the use of highly polluting fuels, such as coal, and promote the adoption of sustainable energy sources. These agreements, signed by the Group of International Partners and three developing countries – South Africa, Indonesia and Vietnam – have the potential to significantly boost the energy transition in these nations.

The International Partners Group, made up of important global players such as the European Union and wealthy countries including the United States, United Kingdom, France, Germany, Italy, Canada, Japan, Norway and Denmark, united in support of this initiative. The main objective is to provide a substantial financial stimulus to accelerate the energy transition in participating countries.

It is estimated that, over a period of three to five years, the three aforementioned developing countries will receive a total of approximately US$ 44 billion (about R$ 226 billion). These financial resources will serve as an incentive for these nations to anticipate the energy transition, gradually abandoning the use of highly polluting fuels and adopting clean and sustainable energy sources.

These significant investments are intended to drive the transformation of these countries' energy sectors, replacing coal-based energy sources with cleaner alternatives such as solar, wind and hydropower. In addition, these resources are expected to contribute to the development of modern and sustainable energy infrastructure, thereby promoting the creation of green jobs and improving the socioeconomic conditions of local communities.

Through the Association agreements for the Just Energy Transition, an attempt is made to establish an international cooperation model that can be replicated in other developing countries, offering a comprehensive approach to face the challenges of the energy transition.

The established agreements are based on the recognition of the urgent need to accelerate efforts to achieve the objectives established by the UN in the fight against climate change, in order to avoid the worst consequences of this phenomenon. With the aim of halving greenhouse gas emissions by 2030 and achieving net zero emissions by 2050, these covenants were crafted with policy statements that highlight these goals.

In practice, the agreements aim to accelerate the decarbonization of the economies of the countries involved, with emphasis on reducing and eliminating the use of coal as an energy source for electricity generation. To achieve this objective, countries will rely on funds from various sources, both public and private, offered through mechanisms such as soft loans, market loans, grants, private investments and others.

An important feature of these agreements is the participation of the private sector. In the cases of Indonesia and Vietnam, it is expected that half of the necessary funds will come from this sector. This approach recognizes the importance of private sector involvement in the energy transition and highlights the need for public-private partnerships to achieve meaningful results.

In addition, the agreements mention the participation of the Glasgow Financial Alliance for Zero Emissions (GFANZ), a coalition of financial institutions that emerged during COP26 with the aim of contributing to the decarbonization of the global economy. The inclusion of this alliance underscores the importance of collaboration between financial institutions and governments in mobilizing resources and implementing concrete actions to address climate change.

These agreements represent an important milestone in the fight against climate change, as they offer a viable path for developing countries to receive the necessary resources to drive the energy transition.

Green Fund: Investing in a Sustainable Future

Young people have played a key role in the fight against climate change. Recognizing this importance, CIF (Climate Investment Funds) has been committed to empowering young climate advocates by supporting innovation, promoting youth-led forums and strengthening their role in decision-making related to climate finance and governance.

In response to youth demand for more information on climate finance, CIF has partnered with the European Bank for Reconstruction and Development (EBRD) to host an interactive capacity building. For two days, 39 young people from Central Asia and Eastern Europe met with experts from the Climate Finance Group for Latin America and the Caribbean, CIF, EBRD and YOUNGO, the youth body of the United Nations Convention on Climate Change (UNFCCC). Young people organized and facilitated the workshop, which also highlighted meaningful ways to engage with multilateral financial institutions on climate change.

In Saint Lucia, a small island country in the Caribbean, CIF supported the development of an application called “Act to Adapt”. This application allows users to assess the impact of a Category 5 hurricane on their homes and learn about possible improvements to be made. In addition, a competition called “Act to Adapt School Competition” was launched that challenged high school students to apply the application to assess potential impacts on their homes and write an adaptation plan describing home improvement projects to increase resilience. Prizes of up to US$ 10,000 were awarded to the winners for implementing the proposed projects. This project activated and encouraged young adults to influence family decisions related to climate resilience.

Another highlight in 2022 was the Youth ADAPT Challenge, a partnership with the Global Center on Adaptation (GCA) and the African Development Bank (ADB), which awarded grants of up to US$ 100,000 to 10 young Africans to incubate and accelerate related business solutions to climate adaptation and resilience. One of the participants, Ifeoluwa Olatayo, started Soupah Farm-en-Market Limited in Nigeria, which specializes in soilless farming systems, producing healthy, fast-growing plants with higher yields, using 95% less water than traditional farming methods . The aim of this venture is to establish 80 greenhouses on rooftops in 15 major Nigerian cities by 2025.

Additionally, in Côte d'Ivoire, CIF's Forest Investment Program (FIP), in partnership with the Government and the World Bank, is implementing a plan that aims to provide funding for women-led activities. One of the beneficiaries of this funding is the Malébi association, founded in 2008 with the aim of combating rural poverty and protecting and restoring forests.

She confirmed firsthand how dwindling natural resources threatened her community, and in response, she began to promote a traditional agroforestry system called Taungya. With funding from CIF, Malébi has already trained and supported 3,000 people in adopting this system. Taungya involves planting native tree species to provide wood for charcoal production, as well as growing foods such as cassava, maize, yams, bananas and groundnuts among the young trees until they mature.

The women participating in this project benefit in two ways: producing and selling charcoal, as well as selling (and consuming) the food products grown. In areas where Malébi operates, communities have also witnessed the return of endangered land tortoises and other forest species, as well as the resurgence of wild herbs used for medicinal purposes.

By providing funding and support, women are enabled to address the environmental and social challenges in their community, contributing to restoring forests, generating sustainable income and strengthening the resilience of local communities.

It also signals that more than half a billion Africans still do not have access to electricity, and while there was rapid progress in electrification before the pandemic, the current pace would take generations to reach all disconnected households, especially in rural areas. However, there are faster and more cost-effective solutions, such as off-grid solar systems and mini-grids, which could be implemented on a large scale. However, to overcome the challenges and implement these solutions effectively requires ingenuity, flexibility and creativity in problem solving. The same applies to forest protection efforts, resilience building measures and other climate change mitigation and adaptation priorities.

Understanding what it takes to succeed in these endeavors and how to replicate them on a large scale is the focus of the Climate Delivery Initiative (CDI), launched in May 2022. Building on the work of the Global Delivery Initiative, which gathered and analyzed data from over of 10,000 projects across the World Bank Group, CDI is developing a knowledge base about the barriers often faced by climate finance programs, as well as ways to overcome them. Its purpose is to help policymakers and operational teams design and implement more effective, differentiated and responsive interventions.

The CDI is composed of three main components: a theoretical basis, which is based on the analysis of data and previous research; a series of case studies; and the Climate Delivery Labs and learning forums, where they are shared with policy makers, academics and project implementers, thus building greater collective knowledge.

One of the first case studies focused on the Scaled Renewable Energy Program (SREP) in Rwanda, which aimed to leverage private sector action to accelerate off-grid rural electrification. With funding of US$ 48.94 million from SREP, the country created a renewable energy fund. CDI published the case study and organized a round table to discuss the results and their applicability in other contexts.

Through these initiatives, with the CDI and programs such as the SREP, the aim is to drive the implementation of effective climate solutions, especially in the African context, where access to electricity is crucial for socioeconomic development and the improvement of people's quality of life. .

Another plan, in order to meet the demands and requests of representatives of Indigenous Peoples and local communities, with CIF's Forest Investment Program (FIP), established the Dedicated Grant Mechanism (DGM), in funding of US$ 80 million. This mechanism aims to direct resources directly to Indigenous Peoples and local communities, in order to support sustainable forest use practices led by them.

The DGM represents a recognition of the great importance of traditional knowledge and the role of Indigenous Peoples and local communities in the protection and sustainable management of forests. Through this mechanism, these groups receive financial and technical support to implement their forest conservation strategies, thus strengthening their capacity to face challenges such as deforestation, forest degradation and climate change.

Just before the Conference of the Parties (COP15) in Montreal, CIF co-hosted a meeting in partnership with Climate Action Network (CAN) Canada, with support from the Government of Canada. This meeting aimed to promote dialogue and collaboration between indigenous representatives, civil society and stakeholders involved in forest conservation and climate issues.

Collaboration between CIF, civil society and indigenous groups is key to strengthening participatory and inclusive governance, ensuring that traditional voices and knowledge are considered in decisions related to forest conservation and climate action. This collaborative and inclusive approach contributes to the promotion of more effective and sustainable solutions that address the environmental and socio-economic challenges faced by local communities.

Building a Sustainable Future: Maximizing the Benefits of Climate Finance

In the face of growing concerns about climate change and the need to promote sustainable development, the need to scale climate finance has become increasingly evident.

Climate finance plays a crucial role in the transition to a low-carbon economy and the implementation of sustainable solutions. To effectively address climate challenges, it is critical to maximize the benefits of climate finance by ensuring that resources are allocated efficiently and effectively.

A strategic approach to scaling climate finance involves mobilizing public and private investment in climate-related projects and initiatives. This includes financing renewable energy, energy efficiency, sustainable transport, adaptation to climate change, among others.

In addition, it is necessary to promote innovative financing mechanisms, such as green bonds, carbon funds and public-private partnerships, which can attract investors and mobilize substantial resources for climate action.

The CIF's growing ambition as a trusted partner in climate finance was strengthened in 2022 with the approval of a new five-year business plan for the CIF's Assessment and Learning Initiative. This plan was developed through extensive consultation with various CIF stakeholders.

The plan has three main objectives: generate new evidence, facilitate applied learning, and build collaborations and partnerships that amplify the impact of the CIF. It emphasizes the urgent need to scale up climate finance and maximize its benefits for climate and development, seeking to generate and share lessons from both the experiences of CIF and its partners.

The Assessment and Learning Initiative develops a number of rigorous studies and strategic learning commitments. This includes face-to-face South-South knowledge exchanges and new studies such as the Renewable Energy Scaling Up Program in Low-Income Countries (SREP) and independent development impact assessments. These studies have provided new evidence, data and analysis of the many ways in which CIF climate finance can support countries' broader goals. The SREP study presents the successes and challenges of energy access in challenging contexts, while the development impact assessment examines the linkages, opportunities and barriers to achieving meaningful and positive outcomes in terms of social, economic, environmental and market development.

The Assessment and Learning Initiative's work focuses on four priority themes: transformational change, just transitions, development impacts, and mobilizing climate finance. As new knowledge is acquired, shared and put into practice, the concepts, methods and metrics developed through Transformational Change Learning are incorporated into the design, implementation and review of new CIF investment programs. Similarly, the Just Transition Initiative (JTI) has launched an initiative to test transition planning tools and methods alone, as well as developing projects focusing on the low-carbon sector and initiatives driven by artificial intelligence (AI), among other approaches. innovative.

And, in this way, they drive effective actions and results in the fight against climate change and in the promotion of sustainable development.