Summary
Graphs and statistics
Basic Description
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Name of Fund |
Strategic Climate Fund (a multi-donor Trust Fund under the umbrella of the World Bank-administered Climate Investment Funds) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Date created |
Date fund proposed: The Fund was first proposed in February 2008. On May 30, 2008, in Potsdam, Germany, the multilateral development banks (MDBs), developed and developing countries and other development partners reached an agreement on the design and establishment of the SCF. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Administrating organisation |
The World Bank serves as the Trustee. An Administrative Unit for the Climate Investment Funds has been established in the World Bank, in order to (i) manage the meetings of the CIF's Trust Fund Committees and the Strategic Climate Fund (SCF) Sub-Committees, in collaboration with the Multilateral Development Banks; (ii) ensure collaboration and communication among the Multilateral Development Banks and convene meetings of the MDB Committee; and, (iii) promote cooperation with other development partners to advance the objectives of the Climate Investment Funds. The World Bank Group, the African Development Bank, the Asian Development Bank, the European Development Bank, and the Inter-American Development Bank are the implementing agencies for SCF investments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Objectives |
The Strategic Climate Fund (SCF) is one of the two (along with the Clean Technology Fund) multi-donor Trust Funds within the Climate Investment Funds (CIF). The SCF is quite broad and flexible in its scope and will serve as an overarching fund for various programs to test innovative approaches to climate change. The SCF is an umbrella vehicle for the receipt of donor funds and disbursements to specific funds and programmes aimed at piloting new development approaches or scaling up activities aimed at a specific climate change challenge or sectoral response. The objectives of the SCF are to: (h) maximize co-benefits of sustainable development, particularly in relation to the conservation of biodiversity, natural resources ecosystem services and ecological processes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Donor contributions |
Pledged: Below is an overall summary of the SCF Trust Fund as of November 2011. The total pledges including contributions effective amount to USD 1.935 billion. All conversions to USD are made by the SCF Trustees themselves.
*Within the SCF, the pledges are allocated as to support the three sub-programs of the SCF: the Forest Investment Program (FIP), the Pilot Program for Climate Resilience (PPCR), and Scaling Up Renewable Energy in Low Income Countries Program (SREP). Please see the individual program fund descriptions **The total pledge made by the US to the CIFs remains $2 billion; the allocation across the programs is indicative and based on an extrapolation of current U.S. allocations. Deposited: As of November 2011, the Trustee had received USD 1.287 billion in total from those contributors to the SCF.
*The total deposited by US includes USD 31.8 mn which has not yet been designated to the FIP, PPCR or SREP programs. We therefore report the US deposit including this amount here, but it does not feature in the amounts reported as deposited in those respective programs pages. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Activities supported |
Within the framework of the SCF, targeted programs with dedicated funding (known as the ‘SCF Programs’) are being established to provide financing to pilot new development approaches or scaled-up activities aimed at a specific climate change challenge or sectoral response. The Pilot Program for Climate Resilience (PPCR) is the first Program under the SCF. It will provide incentives for scaled-up action and transformational change through pilot projects that demonstrate ways to integrate climate risk and resilience into core development planning, while complementing other ongoing development activities in a given country.The Forest Investment Program, will mobilize significantly increased investments to reduce deforestations and forest degradation and promote improved sustainable forest management, leading to emission reductions and the protection of carbon reservoirs. The Program for Scaling-Up Renewable Energy in Low Income Countries (SREP), is within the framework of the Strategic Climate Fund (SCF). The SREP will demonstrate the economic social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy. SCF Programs in addition to those listed above may be considered in accordance with the following criteria: Significant progress has been made on the three sub-programs of the SCF. See detailed descriptions of each of the funds on this website: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Conditions and eligibility requirements |
Criteria for eligibility of recipient countries will be established by each of the SCF Program Sub-Committees.
ODA-eligible countries that have an active MDB country program may access the CIF. Guidelines for accessing financing are finalized by the program sub-committees or through the respective multi stakeholder design process. Implementation will be undertaken utilizing the core processes of the MDBs. While the Trust Fund Committee or sub-committees may decide on the programming priorities and financing modalities for the SCF, the development and management of individual funded projects and programmes will be country-led. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Funds disbursed to date |
See individual programs under the SCF. http://www.climatefundsupdate.org/listing/pilot-program-for-climate-resilience http://www.climatefundsupdate.org/listing/forest-investment-program http://www.climatefundsupdate.org/listing/scaling-up-renewable-energy-program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Uptake and projects supported |
See individual programs under the SCF. http://www.climatefundsupdate.org/listing/pilot-program-for-climate-resilience http://www.climatefundsupdate.org/listing/forest-investment-program http://www.climatefundsupdate.org/listing/scaling-up-renewable-energy-program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Proposed life of fund |
"sunset clause" The fund is an interim measure for the MDBs to fill an immediate financing gap and therefore includes a specific sunset clause linked to the agreement on the future of the climate change regime. Pending final agreement on the future of the climate change regime, the SCF will provide financing to pilot new approaches with potential for scaled-up, transformational action aimed at a specific climate change challenge or sectoral response. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Further information |
1. Strategic Climate Fund document, June 3, 2008 : 2. Governance Framework of the SCF, November 13, 2008: 3. Sharing Lessons with the UNFCCC (Submitted by the Trust Fund Committee member from the UK) – proposal from the January 27, 2009 SCF Trust Fund Committee Meeting: http://siteresources.worldbank.org/INTCC/Resources/SCF-Sharing_lessons_with_UNFCCC-UK.pdf For all other SCF related documentation, refer to: http://www.climateinvestmentfunds.org
Results framework: At the SCF Trust Fund Committee meeting in November 2010, The Trust Fund Committee reviewed document, SCF/TFC.6/5, SCF Results Framework, and approved the report and the proposed results frameworks for the PPCR and the SREP, subject to the comments made at the meeting.
The results framework for PPCR can be found here. The results framework for SREP can be found here. The results framework for the FIP has not yet been approved, and is currently being revised. |
Fund Governance
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Decision-making structure for fund disbursement |
The decision-making structure of the SCF is made up of the SCF Trust Fund Committee, and SCF Sub-Committee(s) for each program. The SCF Trust Fund Committee is comprised of:
The SCF Trust Fund Committee is responsible for approving establishment of SCF Programs and the scope and objectives governing the use of the funds under the SCF Programs; ensuring that the strategic orientation of the SCF is guided by the principles of the UNFCCC; establishing a SCF Sub-Committee for each SCF Program and designating members; approving allocation of SCF resources for administrative budgets; etc.
Decision by the SCF Trust Fund Committee will be made by consensus of the voting Members. If consensus is not possible, then a proposed decision will be postponed or withdrawn.
For each of the SCF targeted programs (FIP, PPCR, and SREP), the SCF Trust Fund Committee has established a Sub-Committee which consists of:
The functions of each SCF Sub-Committee will include approving programming priorities, operational criteria and financing modalities for the SCF Program; approving SCF Program financing for programs and projects; ensuring complementary between activities foreseen for the SCF Program and activities of other development partners active in the field of climate change, including the GEF and the UN, and ensuring effective cooperation between the SCF Program and the GEF and UN country activities to maximize synergies and avoid overlap. In addition to the SCF Trust Fund Committee and the SCF Sub-Committee(s), the governance and organizational structure of the SCF includes a Partnership Forum, an MDB Committee, an Administrative Unit and a Trustee. The Partnership Forum is a broad-based meeting of stakeholders of the CIF, including contributor and eligible recipient countries, MDBs, United Nations organizations, GEF, UNFCCC, the Adaptation Fund, bilateral development agencies, non-governmental organizations, private sector entities, and scientific and technical experts.
The MDB Committee facilitates collaboration, coordination and information exchange among the MDBs. The Administrative Unit supports the work of the CIF, including the SCF, and the SCF Trust Fund Committee, SCF Sub-Committees and other bodies of the CIF. The Administrative Unit will be housed in the Washington, D.C. offices of the World Bank and comprised of a small team of professional and administrative staff employed by the World Bank.
The IBRD will serve as Trustee for the SCF. IBRD, in its capacity as the Trustee, will establish a trust fund for the SCF (the Trust Fund) to receive contributions from contributors to the SCF, and will hold in trust, as a legal owner, and administer the funds, assets and receipts that constitute the Trust Fund. |
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Consultations with non-government stakeholders |
In designing the Climate Investment Funds, consultations took place with potential donors and recipients, the United Nations family, other multilateral development banks (MDBs), civil society organizations, and the private sector. At a final design meeting, held in Potsdam, Germany, on May 21-22, 2008, representatives from some 40 developing and industrialized countries agreed to create the CIF. The challenge in the first year was translating the cooperative effort of the design process to an inclusive operational structure. Decision-making and disclosure were problematic at the beginning. But as time went on, Trust Fund Committee members agreed on the need for developing a formal role for other stakeholders as observers. The design of the self-selection process was based on independent advice (from non-governmental organizations (NGOs) and the private sector) and using best practices from other organizations. The NGO and private sector observers met for the first time at the October 2009 meetings. A self-selection process for Indigenous Peoples observers awaits approval. The Fund includes a Partnership Forum – a broad-based meeting of stakeholders, including donor and eligible recipient countries, MDBs, UN and UN agencies, GEF, UNFCCC, the Adaptation Fund, bilateral development agencies, NGOs, private sector entities, and scientific and technical experts. The group will be convened annually to provide a forum for dialogue on the strategic directions, results and impacts of the CIF. The Partnership Forum will be co-chaired by the World Bank Vice President for the Sustainable Development Network and a country representative elected by countries participating in the Partnership Forum. The Partnership Forum will be a meeting for dialogue and consultation and will not lead to written outcomes, such as agreed texts or declarations, which could be used as a basis for discussions in the UNFCCC. The next Partnership Forum is to be held in June 2011 in Cape Town, South Africa. Recognizing the importance of transparent decision making, effective dialogue and linkages with its partners, the Trust Fund Committee invites a number of active observers to attend its meetings. Active Observers are listed below, and more detail can be found on the SCF website here http://www.climateinvestmentfunds.org/cif/SCF_Observers
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How fund disbursement is reported |
Gross fund disbursements for each fund under SCF (FIP, SREP and PPCR) can be found in Trustee Reports on the Financial Status of the SCF, presented to each SCF Trust Fund Committee meeting. Disclosure policy In May 2009, the Trust Fund Committees approved a disclosure policy that calls for country-owned investment plans and strategies developed under each of the Trust Funds to be disclosed in-country prior to their submission to a CIF Committee for approval. Proposed plans are also posted on the CIF website no later than 3 weeks prior to review of the proposal by a Committee. In the case of proposed programs and projects, an information document describing the proposal is to be made public at least two weeks prior to a decision on the funding of the proposal. The policy recognizes that a country or a project proposer may have justifiable reasons for not publicly disclosing all information in an investment plan or project. In this case, certain information may be kept confidential. This is to be done only on an exceptional basis, and non-disclosure of information is to be justified to the Committee. |
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Issues raised by the public |
The SCF has been criticised by certain civil society groups for creating parallel structures for financing climate change adaptation and mitigation outside the ongoing multilateral framework for climate change negotiations and within a process dominated by G8 countries. Developing countries have long argued for greater commitments and increases in financial resources under the UNFCCC to enable them to fulfil their obligations under the Convention but have maintained that such resources should be placed under the guidance of the state parties to the Convention to ensure consistency with internationally agreed priorities and principles (See: Celine Tan, Third World Network, ‘World Bank’s Climate Funds Will Undermine Global Climate Action’ 10 April 2008: www.twnside.org.sg/title2/finance/docs/Climate.Funds-Commentary.Revised.doc). The CIFs have also been criticised for the significant speed at which they have been designed, promoted and implemented without due consultation with wider stakeholders. (See: Celine Tan, Third World Network, ‘No additionality, new conditionality: a critique of the World Bank’s Climate Investment Funds’ Briefing Paper 2, 2008: www.foe.org/pdf/CIF_TWNanalysis.pdf). The language of the Fund has been criticised for implying recognition of the UNFCCC principles as merely guidance for the Fund’s policies rather than as binding internationally negotiated commitments of state parties which must be respected. They have also been characterised as demonstrating a lack of familiarity with the principles negotiated under the Convention and the legal status of commitments under the UNFCCC (see: http://www.twnside.org.sg/title2/finance/twninfofinance20080510.htm).
The ‘Partnership Forum’ was due to take place this year, but has been postponed by the Trust Fund Committees of the CIFs. The Partnership Forum’s original aim to be an ‘annual, broad-based meeting of stakeholders’ has the potential to play a key role in the process of lesson-learning regarding the strategic directions, results and impacts of the Climate Investment Funds, and its outcomes should inform the UNFCCC negotiations. Given the proposed postponement civil society remains sceptical about the genuine commitment of the Trust Fund Committees to make the Forum an effective and relevant platform. The decision to postpone the 2009 Forum has reinforced civil society’s concerns about the lack of a genuine process of stakeholder engagement throughout the CIFs. At the first Partnership Forum held in Washington in 2008, the views of civil society failed to be utilised effectively, and on occasions ignored and censored. Discussion paper produced for the CIF Partnership Forum "LOOKING AHEAD FOR LESSONS IN THE CLIMATE INVESTMENT FUNDS A REPORT ON EMERGING THEMES FOR LEARNING" which examines the development to date of the CIFs through the following themes: Speed vs. Scale, Quality and Depth of Impact; Transformational Change; A Global Network; In-Country Cooperation among Government, Development Partners and Official Agencies; Stakeholder Engagement; Governance and Committee Meetings; and Financing Topics. |
Relationship with Official Development Assistance
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Is donor funding considered part of official development assistance? |
Since CIF is a pooled multi-donor trust fund managed by the World Bank, an international development institution recognized as such by the DAC for the purpose of ODA eligibility, these contributions can be scored as multilateral ODA. The outgoing use of all CIF resources as concessional loans, grants, and guarantees through the MDBs can be reported by each MDB as ODA if: (a) it meets the criterion of promoting economic development and welfare; b) the grant element is at least 25 percent; and c) funds are to be used in a country included in DAC list of ODA eligible countries. |
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Financial instrument/ delivery mechanism used (e.g. grant, loan) |
The SCF will make available a range of financing, credit enhancement and risk management tools such as loans, credits, guarantees, grants and other support, targeted to the needs of developing countries. It has been reported that for the SCF, the grant component should be no more than 10 percent of total resources. |
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Nature of recipient country involvement |
CIF funds will finance country-owned programs. A selection of eight eligible recipient countries, equal to the number of donor countries, will participate in the SCF Trust Fund committee as voting members. A selection of eligible recipient countries (matching the number of contributor countries) will participate in the SCF Sub-Committee and participate as voting members, together with a representative of the Kyoto Protocol’s Adaptation Fund. For complete list of Trust Fund Committee members, see: http://siteresources.worldbank.org/INTCC/Resources/annual_report_draft2_101409.pdf (page 57-69) Recipient countries and civil society from recipient countries will also be invited to the Partnership Forum meeting of stakeholders, and provided with material support to cover travel and subsistence costs. The Partnership Forum does not have voting members nor written outcomes and only serves as a forum for dialog and discussion. |
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Overall consistency with the aid effectiveness agenda (i.e. the Paris Declaration) |
Mention of aid effectiveness is made within the context of the SCF Pilot Program on Climate Resilience (PPCR). The PPCR ‘will be implemented in a manner consistent with the Paris Declaration of Aid Effectiveness, and will complement the existing adaptation funds which continue to serve essential roles in tackling climate change.’ At the January 27, 2009 SCF Trust Fund Committee meeting, the SCF Trust Fund Committee member from the UK submitted two proposals (available here: http://siteresources.worldbank.org/INTCC/Resources/SCF-Sharing_lessons_with_UNFCCC-UK.pdf http://siteresources.worldbank.org/INTCC/Resources/Role_of_SCF_TFC_in_addressing_Strategic_Issues-UK.pdf ). These proposals address the need to better identify the role of the SCF Trust Fund committee as its constituent funds develop. The Funds and their programmes all share certain design features, many of which have not been previously implemented in practice; there is therefore particular interest in assessing these features. The UK therefore prepared a paper to prompt discussion in the SCF TFC on the key areas where the Funds could generate experience and how that lesson learning might be communicated to wider audiences and specifically to the UNFCCC given that an agreement on the overarching financial architecture for climate funding is essential to progress in Copenhagen. The papers were discussed at the May 2009 Trust Fund Committee meeting, with the Committee:
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