WASHINGTON — Today, U.S. Secretary of the Treasury Janet L. Yellen addressed the Climate Investment Funds Panel, “Scaling Up Just Energy Transitions to Enable Industry Decarbonization.”
She highlighted that the Treasury has signed an agreement for a $568 million loan to the Clean Technology Fund (CTF)—a multilateral trust fund that helps to deploy clean energy in developing countries. The loan is funded by resources appropriated by Congress and will support U.S. climate commitments. Since 2022, the United States has contributed over $1.5 billion in concessional loans to the CTF.
“The loan will enable the Clean Technology Fund to drive progress in key areas, from clean energy deployment to supply chains to green industry. U.S. support to the Climate Investment Funds is a key part of our work to strengthen the climate finance architecture and to evolve the multilateral development banks to better respond to global challenges like climate change,” said Secretary Yellen.
The $568 million loan will fund CTF projects developed and implemented by multilateral development banks, including the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank Group, and the World Bank Group. The CTF provides critical concessional finance to support Just Energy Transition Partnerships in South Africa and Indonesia.
The Secretary also expressed support for launching the CIF Capital Markets Mechanism in 2024 which will support its programming by tapping into capital markets, creating a new channel for private sector investors to support the climate transition in developing countries and contributing to our key priority of private sector mobilization.
“I strongly support the CIF Capital Markets Mechanism, which will be key in driving private sector mobilization. I call on the Climate Investment Funds, World Bank and the many others involved in this important work to launch the mechanism ahead of COP-29,” said Secretary Yellen.