CIF Selects Seven Nations For Industry Decarbonization

In a major step towards curbing greenhouse gas (GHG) emissions from heavy industries, the Climate Investment Funds (CIF) has announced the selection of seven middle-income countries—Brazil, Egypt, Mexico, Namibia, South Africa, Türkiye, and Uzbekistan—as the first cohort to lead its landmark $1 billion Industry Decarbonization initiative. The program, which is the world’s first concessional finance mechanism specifically focused on industrial decarbonization in developing nations, aims to transform high-emission sectors through support for clean, circular, and low-carbon technologies.

Industry is one of the largest contributors to global climate change, responsible for approximately one-third of the world’s total emissions. To meet internationally agreed climate goals, emissions from industrial activities must decline by at least 20% by 2030 and an ambitious 93% by 2050. Recognizing this urgent challenge, CIF’s Industry Decarbonization program will provide concessional financing to accelerate the adoption of breakthrough technologies such as green hydrogen, low-carbon materials like steel, aluminum, and cement, and advanced techniques like waste heat recovery.

What sets this initiative apart is its strong emphasis on mobilizing private sector investment. The program permits up to 100% of its capital to be channeled into private sector-led projects or initiatives that demonstrate significant co-investment. A minimum of 50% of the total funding is earmarked for private sector initiatives, reflecting the critical role of industry and private capital in driving decarbonization at scale. Each dollar from CIF is expected to unlock an additional $12 from other sources, multiplying the financial impact and reach of the program.

According to CIF CEO Tariye Gbadegesin, decarbonizing industry is not solely about reducing emissions. “It’s about securing long-term prosperity and the jobs of tomorrow,” she said. “It’s about producing the low-carbon industrial inputs that are urgently needed to expand renewable energy capacity and power the global economy.” Her remarks highlight the dual objective of the initiative: climate mitigation and socio-economic development.

The selection of the seven countries followed a rigorous evaluation process, in which they were chosen from a pool of 26 applicants. These nations were recognized for their strong institutional frameworks, readiness to implement decarbonization strategies, and significant involvement from the private sector. With this selection, the countries will now begin working closely with multilateral development banks (MDBs), private investors, and other stakeholders to draft detailed investment plans. These plans will then be reviewed and endorsed by CIF’s Governing Board before receiving funding.

An important aspect of the initiative is its focus on inclusive growth. The program integrates provisions for reskilling the workforce and supporting vulnerable communities that may be affected by the transition to a low-carbon economy. This ensures that the shift toward sustainability does not come at the cost of social stability or economic security.

The Industry Decarbonization program is a key component of the Clean Technology Fund (CTF), which is part of CIF’s broader $9 billion funding framework. It is also supported by the CIF Capital Markets Mechanism—a financial innovation aimed at attracting large-scale private capital by reducing investment risks in hard-to-finance sectors. Since its inception in 2008, CIF has received $12.5 billion in donor pledges and has been instrumental in delivering early-stage grants and concessional loans to support climate action in developing countries.

For the selected nations, the benefits are manifold. By taking the lead in this pioneering initiative, these countries will not only make a significant contribution to global emission reduction efforts but also position themselves to gain a competitive edge in the rapidly expanding green industrial market. The global market for low-carbon industrial technologies is projected to reach $2 trillion by 2030, offering tremendous economic opportunities for early movers.

The launch of the Industry Decarbonization initiative marks a significant milestone in global climate finance and industrial sustainability. By bringing together concessional funding, private sector investment, and inclusive development policies, CIF is helping to catalyze a new era of industrial transformation—one that balances environmental responsibility with economic resilience.