Seven Countries Join US$1 Billion Decarbonization Fund

Mexico, Brazil, Egypt, Namibia, South Africa, Türkiye, and Uzbekistan have been invited to join the Climate Investment Funds’ (CIF) US$1 billion Industry Decarbonization investment program, the world’s first concessional finance initiative dedicated to slashing industrial greenhouse gas emissions in developing countries.

“The global race to decarbonize industry has begun, and emerging markets are out front. Decarbonizing Industry is about more than emissions, it is about securing long term prosperity and the jobs of tomorrow. And it is about producing the low-carbon industrial inputs that are urgently needed to expand renewable energy capacity and power the global economy,” says Tariye Gbadegesin, CEO, CIF. 

This initiative marks a significant shift in the global decarbonization landscape, positioning these countries as pioneers in advancing low-carbon industrial development while fostering green job creation. As global demand for green industrial goods is projected to surpass US$2 trillion by 2030, these nations are seizing a timely opportunity to strengthen economic competitiveness and climate resilience.

“Countries across Latin America and the Caribbean have demonstrated strong interest in accessing CIF resources to support the adoption of advanced technologies in key industrial sectors such as cement, chemicals, and steel. Active engagement from the private sector will be a critical component of the program, contributing significantly to job creation, economic growth, and innovation," says Juan Pablo Bonilla, Sector Manager Climate Change and Sustainable Development, Inter-American Development Bank (IDB).

With support from multilateral development banks and private sector partners, the seven countries will now begin crafting national investment plans. Once endorsed by CIF’s Governing Board, these plans will unlock access to highly concessional funding to scale up clean and circular technologies, including green hydrogen, waste heat recovery, and low-carbon materials such as steel, aluminum, and cement — sectors that are traditionally difficult to decarbonize but critical for the global energy transition.

“Industrial decarbonization is not only essential for reducing emissions, but it also presents a transformative opportunity for inclusive and sustainable growth across Africa,” says Anthony Nyong, Director for Climate Change and Green Growth, African Development Bank (AfDB).

The selected countries stood out among 26 applicants after a rigorous review process led by an independent expert panel. Their selection reflects strong private sector engagement, institutional readiness, and a clear commitment to industrial decarbonization.

A hallmark of the Industry Decarbonization program is its unprecedented level of private sector engagement. Up to 100% of financing can be directed to private sector-led projects or those attracting major private co-investments. At least 50% of funding must go toward the private sector, ensuring a market-driven approach that promotes innovation, efficiency, and scalability.

"Decarbonizing hard-to-abate sectors is critical to achieving global climate goals, as these sectors are major contributors to greenhouse gas emissions," says Bruno Carrasco, Director General, Sustainable Development and Climate Change, Asian Development Bank (ADB).

The program also emphasizes workforce inclusion and reskilling, supporting vulnerable communities while equipping workers with the skills needed for a green economy. This aligns with CIF’s broader mission to drive sustainable, inclusive, and climate-resilient development through its US$9 billion Clean Technology Fund (CTF).

“We congratulate the countries that have been selected to develop an investment plan for the CIF Industry Decarbonization investment program and look forward to supporting them in the further elaboration of their strategies and investments. Today's announcement represents a pivotal moment in driving transformative industrial development and job creation,” says Chandrasekar Govindarajalu, Practice Manager, Energy Sector Management Assistance Program (ESMAP), World Bank.