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BRIEF December 10, 2020

Canada-World Bank Clean Energy and Forests Climate Facility

Landscape of green fields and forest in Indonesia.

Photo: Curt Carnemark / World Bank


Accelerating the clean energy transition and climate-smart land use

The Canada-World Bank Clean Energy and Forests Climate Facility targets financing to where it is needed most in order to stimulate investment in inclusive, green growth.

Established in 2020 with CAD$400 million in loans and CAD$10 million in grant contributions from Canada, the Facility will support transformational climate actions of World Bank projects, with a focus on Asia’s clean energy transition, renewable energy in Small Island Developing States (SIDS), and forests and sustainable land use. Financing from the Facility will:

  • Catalyze and scale up clean energy climate financing across multiple sectors
  • Accelerate energy efficiency and renewable energy market development
  • Promote the mainstreaming of gender considerations in clean energy investments
  • Support sustainable landscapes, climate-smart land use, and green supply chains, as well as new financial instruments that promote private sector investment and public-private partnerships

The facility has four programs:

  • Energy transition: CAD$275 million to co-finance World Bank projects that aim to slow the expansion of coal in the power sector by scaling up low-carbon alternatives (including solar, wind, and geothermal), as well as improve energy efficiency, and grid modernization. Financing will help strengthen the capacity of key institutional actors to design regulatory incentives to boost energy efficiency and markets for renewable energy.
  • Renewable energy in SIDS: CAD$50 million to co-finance World Bank projects for renewable energy investments.
  • Forests and landscapes: CAD$75 million to co-finance World Bank projects working to reduce carbon emissions from deforestation and forest degradation and to foster conservation, sustainable management, and enhancement of forest resources.
  • Gender equality in the renewable energy sector in SIDS: CAD$10 million in grants to provide technical assistance in SIDS to pursue gender equality through women’s employment and enterprise development across energy value chains.

Eligible countries by program include:

Program

Africa

East Asia and Pacific

Latin America and Caribbean

South Asia

Energy transition co-financing

South Africa

Indonesia, Philippines, and Vietnam

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India, Pakistan

Renewable energy-SIDS co-financing

Cabo Verde, Mauritius

Fiji, Vanuatu

Antigua and Barbuda, Belize, Dominica, Dominican Republic, Guyana, Jamaica, Saint Lucia, and Saint Vincent and the Grenadines

Maldives

Forests and landscapes co-financing

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Fiji, Indonesia, Lao PDR, and Vietnam

Colombia, Costa Rica, Dominican Republic, Guatemala, Mexico, and Peru

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Gender equality-SIDS grants

Cabo Verde, Comoros, Guinea-Bissau, Mauritius, and Sao Tome and Principe 

Fiji, Kiribati, Marshall Islands, Micronesia (Federated States of), Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, and Vanuatu

Antigua and Barbuda, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, and Suriname

Maldives

This facility is supported by the Government of Canada. It aligns with Canada’s climate policy and gender equality priorities and compliments its ongoing cooperation with the South East Asia Energy Transition Partnership. Within the World Bank trust fund portfolio, the facility falls under the Climate Change Global Practice, with the Energy Sector Management Assistance Program (ESMAP) and the Energy Global Practice sharing operational oversight.

For media inquiries please contact: Breen Byrnes, bbyrnes@worldbank.org