The increased focus on climate is reflected in increased funding for cleaner, greener sources of energy. Financing for renewable energy and energy efficiency by the Bank Group rose 24% in the last financial year to reach more than $3.3 billion, an all time high . Such financing now represents more than 40% of annual energy commitments by the Bank Group, and the aim is to move this to 50% of all energy commitments within two years. IFC , the private sector branch of the Bank Group, recorded its highest-ever financing in renewable and energy efficiency, crossing $1 billion last year.
One of the most important concerns among client countries was the financing and learning gaps between now and a post-2012 global climate change agreement. Recognizing that poverty reduction, economic growth, and climate change must be addressed in tandem, the Climate Investment Funds  (CIFs) were approved in 2008. The idea was to open the opportunity to blend funding for climate solutions with other already-available resources, thereby leveraging substantial additional resources. The CIFs, with pledges of over $6.3 billion, are stimulating new low carbon or carbon resilient work in more than 20 countries.
The CIFs have two components: The Clean Technology Fund  (CTF) and the Strategic Climate Fund  (SCF). These provide the architecture through which concessional financing may be available quickly and flexibly for low carbon growth and climate resilient activity. The CIFs demonstrate how a sum of money can be used to leverage resources several times over. The first private sector project to be approved was the Mexico Private Sector Wind Development project with an initial investment of $15.6 million that went on to leverage $120 million. Some of the other projects include an `intelligent’ power grid management system in Turkey and a bus rapid transit corridor in Egypt.
Mobilizing Finance for Adaptation
Adaptation  is at the centre of the Bank Group’s support to developing countries as it is critical to sustaining and furthering development gains in these countries. The poorest countries will be the hardest hit and, even with mitigation efforts, there will be a need to avoid the unmanageable effects of climate change.
Programs range from adaptation in arid and semi-arid lands in Kenya, Yemen, and India to dealing with the impact of rapid glacier retreat in the Andes. These programs integrate a menu of financing options available from several sources, such as IDA, IBRD, GEF, the Least Developed Countries Fund (LDCF), the Special Climate Change Fund (SCCF), and bi-lateral co-financing.
The second CIF component, the Strategic Climate Fund (SCF), aims to mainstream climate resilience into core development planning of client countries. The first of these programs, the Pilot Program on Climate Resilience  (PPCR), has already been launched. Work is underway in nine countries to identify and start activities under this program, supported by $600 million in grants. The PPCR is also setting up a Forest Investment Programs  and a Scaling up Renewable Energy for the Poor  program in low-income countries.
Carbon Finance and Market Innovation
The Bank Group continues its pioneering work in carbon finance , currently managing 10 funds and two facilities, with $2.3 billion in committed funds, of which over $1.9 billion is tied to emission reductions purchase agreements. Two new facilities, the Forest Carbon Partnership Facility  (FCPF)—for reduced emissions from deforestation and forest degradation (REDD)—and the Carbon Partnership Facility  (CPF)—for programmatic and sector-wide intervention—are further broadening the scale and duration of carbon finance for developing countries.
There are 37 REDD Country Participants with three countries having submitted REDD readiness proposals.