Germany, the United Kingdom, Canada and the Climate Investment Funds (CIF) today team up to scale international assistance for the decarbonisation of industry in developing markets and emerging economies.

The Governments of the United Kingdom and the Federal Republic of Germany will be leading the way by pledging over USD 420 million, of which USD 120million will be channelled into the CIF’s’ Industry Decarbonisation Programme.  300 million USD will be allocated for technical assistance to support countries to move to clean energy sources.  

Germanys contribution is approximately USD 220 million coming from the International Climate Initiative (IKI) and the international development budget.  The UK’s contribution is approximately USD 211 million from the UK’s existing international aid budget. 

This serves as a call to action and is designed to mobilise additional pledges from governments and philanthropies and to catalyse investments from the private sector, from 2025 and beyond through the Presidencies of the G7, G20 and COP30. 

Germany’s Federal Minister for Economic Affairs and Climate Action Minister Robert Habeck said:

“Only three days after the official launch of the Global Matchmaking Platform of the Climate Club the pledge is sending a strong signal to the international community, building momentum towards COP30 in Brazil. Momentum that we need to catalyse additional investments for the decarbonisation of industries in developing and emerging countries. With our funding we are supporting our partner countries in the global south, fostering a global level playing field and aiming to prevent carbon leakage.”  

The United Kingdom’s Secretary of State for Energy Security and Net Zero Ed Miliband said: 

“The UK is back in the business of climate leadership and that means standing shoulder to shoulder with our international allies against the biggest long-term challenge our global community faces – tackling emissions and protecting our planet. 

“I am proud of the commitments we are making both at home and abroad, building on funding agreed by the previous government to support countries around the world to work together to decarbonise some of the most polluting industries so we can future-proof businesses and jobs in such a way that they can be a key part of the solution to climate change.” 

The pledge is sending a strong signal towards the international community, building momentum towards COP30 in Brazil and aims to catalyse additional pledges from governments and philanthropies and mobilise significant private investments from the private sector.  

Many organisations have joined already – ranging from the United Nations Industrial Development Organization (UNIDO) to the Mission Possible Partnership and the Alliance for Industry Decarbonisation. Implementation of the pledge will further be facilitated by the Climate Club and the Breakthrough Agenda, including through enhanced donor coordination, building a pipeline of bankable projects, and strengthening matchmaking services and country partnerships.  

Decarbonising industrial sectors globally requires common approaches and policies on issues ranging from long-term strategies and targets, resource efficiency, demand and supply side measures to standards and definitions to carbon pricing, as well as cross-sectoral collaboration.  

Building on the recent Climate Club mapping report developed by the OECD, which highlights the need to increase financial and technical assistance for industry decarbonisation in EMDEs, this signal is very much needed. Reducing the climate impact of, and fostering resilience in, high emitting industries will better enable EMDEs to create green jobs, reduce pollution improve sustainable development opportunities, and thus strengthen a Just Transition. 

In addition, this support is also needed to create a level playing field for new green markets and reduces carbon leakage risks. This support for emerging and developing countries is a necessary commitment for a successful global transition to climate neutrality and complements the work and discussions on standards and carbon leakage in the Climate Club. It will also support delivery of the annual priority actions on finance and investment under the Steel and Cement & Concrete Breakthroughs.