Name of Fund

The International Climate Fund (ICF)

Official Fund Website

www.decc.gov.uk/en/content/cms/tackling/international/icf/icf.aspx

Date Created

Date fund proposed: 2010

Date fund made operational: 2011

Proposed Life of Fund

2011-12 to 2014-15

Administrating Organisation

The ICF is managed by a high level cross-departmental project team with representation from the Department for International Development (DFID), the Department for Environment and Climate Change (DECC), the Finance Ministry (Her Majesty’s Treasury), The Department for Environment, Food and Rural Affairs (DEFRA), and the Foreign and Commonwealth Office (FCO).

Objectives

The ICF aims to drive urgent action to tackle climate change by supporting low carbon growth and adaptation in developing countries. Specifically, the ICF has three objectives:

1.   Demonstrate that low-carbon, climate resilient growth is not only feasible, but desirable;

2.   Support international climate change negotiations; and

3.   Recognise that climate change offers new opportunities for private sector partnerships, innovation, and sustainable development. 

These priorities have thematic foci on adaptation, low-carbon development, and forestry projects.

Activities Supported

Activities supported by the ICF include:

• Building global knowledge and evidence;
• Developing and scaling-up low-carbon and climate resilient programs;
• Building capacity in the public and private sectors and supporting country level action; and
• Mainstreaming climate change into UK development aid.

The ICF also supports strategic initiatives such as the Climate Public Private Partnership (CP3) and the Capital Markets Climate Initiative (CMCI). Both aim to catalyse private investment and climate finance flows to developing countries.

Conditions & Eligibility Requirements

ICF funds are usually channelled through global multilaterally administered programs rather than towards specific country initiatives.  Principles guiding ICF expenditure include:

1.     Consistency with the DAC definition of ODA;

2.     Consistency with UK agreements on aid effectiveness (under the Paris Declaration);

3.     Open and transparent project performance;

4.     Choice of instrument; and

5.     Appropriate enabling environment.

Accessing the Fund

Proposals for ICF expenditure will be prepared for Ministers by an ICF Board comprising of Directors General from DECC, DFID, FCO, DEFRA and Her Majesty’s Treasury (HMT). Ministerial decisions on the ICF are guided by the international climate change strategy agreed by the National Security Council, the outcome of DFID’s Bilateral and Multilateral Aid Reviews and the strategy set by the cross Whitehall International Climate Change Programme Board.

Decision Making Structure

The ICF Board consists of representatives from DFID, DECC, DEFRA, the Foreign and Commonwealth Office, and HM Treasury.

Non-Government Stakeholder Participation

Although there was no formal non-government stakeholder participation in designing the ICF, there were early consultations with numerous civil society and research groups in the UK.

The ICF also discusses building capacity amongst local stakeholders, and contributes to research initiatives such as the Climate and Development Knowledge Network.

Information Disclosure

The UK released a report relating to its Fast Start Finance in November 2011.  This report included a list of projects for which funds had been ‘spent and committed’. 

Issues Raised