Launch of the “CVF & V20 Joint Multi-Donor Fund”

IKI is participating in a fund to help countries that are suffering from the adverse effects of climate change. 

Storms, droughts, floods and other extreme weather events are becoming more frequent due to climate change. Countries like Bangladesh and small island states like Samoa, Fiji and Haiti are particularly affected. These "vulnerable states" founded the Climate Vulnerable Forum (CVF) back in 2009 to network and to represent their interests in international climate policy. The finance ministers of the CVF member states have also formed the Vulnerable 20 Group (V20). 

The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) has provided regular funding since 2014 for the CFV via International Climate Initiative (IKI). The BMU consolidated this support by helping to set up the "CVF & V20 Joint Multi-Donor Fund" in December 2020 with a contribution of EUR 3 million. Bangladesh also donated USD 100,000 (approximately EUR 84,000) and the Marshall Islands contributed USD 30,000 (approximately EUR 25,000). The fund now has assets of roughly USD 7.7 million (approx. EUR 6.5 million), as two philanthropic climate foundations have both contributed USD 2 million. 

The new fund was officially unveiled to the public on 8th July 2021 at the first summit of the V20 finance ministers. BMU State Secretary, Jochen Flasbarth, issued in his video message: 

“As the German Ministry for the Environment we are honored that we were involved in setting up this fund as an instrument to strengthen ambitions and to leverage much-needed additional support for limiting temperature rise. Our International Climate Initiative has a history in working with Least Developed Countries, Middle-Income Economies and Small Island Developing States, and we have already supported individual CVF activities in the past. But the initiation of the multi-donor fund has now enabled the establishment of a permanent funding base.”

Go to the video statement.

The CVF & V20 Joint Multi-Donor Fund

The aim of the fund is to facilitate coordination between the member states of the CVF and to strengthen South-South cooperation. The member states are supported to set priorities in climate change mitigation and to implement effective measures - both in adapting to climate change and in the mitigation of greenhouse gas emissions. 

The fund also aims to ensure that CVF and V20 members can effectively participate and represent their interests in important global forums such as the United Nations Climate Change Conference and meetings on international economic policy.

The work of the Fund has a dual purpose: on the one hand to focus on a climate and environmental policy which is aligned with the CVF and, on the other, to pursue an economic and financial policy that addresses the V20 Group.

The priorities of the current work plan include: 

• The development of transformative climate and development policies in individual CVF & V20 member states; 
• The development of energy transition scenarios in collaboration with the International Energy Agency; 
• The creation of a "Climate Vulnerability Monitor" using climate analytics; and 
• To support the Accelerated Finance Mechanism in cooperation with multilateral development banks and the Sustainable Insurance Facility.

Read more about the fund ...  

Background information: the Climate Vulnerable Forum and V20 Group 

The Climate Vulnerable Forum (CVF) is an action platform comprising 48 countries that are suffering from the adverse effects of climate change. The aim of the Forum is to limit global warming to a maximum of 1.5 degrees Celsius. The various states are also committed to combating energy poverty, to ensuring a secure water and food supply, and to timely increases in contributions to national climate protection. The CVF was founded in November 2009 by the Maldives and 10 other countries; the forum represents a total of 1.2 billion people living in countries that are vulnerable to the effects of climate change.

The Vulnerable Twenty (V20) Group brings together the finance ministers of the CVF member countries. The V20 was launched in 2015 in conjunction with the annual meetings of the World Bank Group (WB) and the International Monetary Fund (IMF).