Author: PPD Team Date: 17/06/2025
The Climate Investment Fund (CIF) has announced the launch of a $1 billion Industry Decarbonization Program, selecting Brazil, Egypt, Mexico, Namibia, South Africa, Türkiye, and Uzbekistan as the first countries to participate.
This initiative is the first global concessional finance programme focused on helping developing nations decarbonise their high-emission industrial sectors. It targets hard-to-abate industries such as steel, aluminium, and cement—critical for the global energy transition but difficult to decarbonise using current technologies.
The programme’s goal is to drive industrial transformation, support the creation of green jobs, and strengthen the presence of these countries in the growing green industrial goods market, which is projected to reach $2 trillion by 2030.
Each participating country will work with multilateral development banks and private sector partners to develop investment plans. These plans will be reviewed by CIF’s governing board and will become eligible for highly concessional financing once approved.
Funds will be used to scale clean and circular technologies, including green hydrogen, waste heat recovery, and low-carbon materials. Up to 100% of financing may go to private-sector-led projects or initiatives with significant private co-investment, with a required minimum of 50%.
The programme also emphasises workforce protection, including retraining efforts, to support a just transition for workers and communities affected by the industrial shift.
The Industry Decarbonization Program was designed to help major emitting sectors in developing countries shift toward more sustainable practices. It plays a key role in global efforts to reach net-zero emissions by 2050.
The seven countries were chosen from 26 applicants after a competitive process led by an independent expert panel. Selection was based on criteria such as institutional capacity, private sector readiness, and strong national commitment to industrial decarbonisation.
The programme is part of CIF’s $9 billion Clean Technology Fund (CTF), supported by the CIF Capital Markets Mechanism (CCMM), which aims to attract private investment into climate-focused projects. Historically, every $1 of CIF investment has mobilised an additional $12 in external financing.
Tariye Gbadegesin, CEO of CIF, said: “The global race to decarbonise industry has begun, and emerging markets are leading. This is not only about cutting emissions—it is about building long-term economic strength and delivering the materials needed for a cleaner global economy.”