The Italian Climate Fund

Legislation

The 2022 Budget Law 2022 established the Italian Climate Fund, the main national public instrument for pursuing the objectives undertaken by our country within the scope of international agreements on climate and environment.

Decree of October 21, 2022 Conditions, criteria and methods for the use of the resources of the «Italian Climate Fund». (23A00878) (GU General Series n.37 of 14-02-2023)

Objectives

The fund aims to finance interventions in favor of private and public entities, in emerging and developing countries, aimed at contributing to the achievement of the objectives set by international agreements on climate and environmental protection, to which Italy has joined.

Structure and equipment

It is a revolving fund, with an endowment of 840 million euros per year from 2022 to 2026, and 40 million euros per year from 2027 onwards.

This endowment may be increased through financial contributions from public or private, national or international third parties.

Governance

The fund includes two inter-ministerial committees, composed of representatives of the Ministries of the Environment and Energy Security, of Economy and Finance and of Foreign Affairs and International Cooperation.

Steering Committee – Established on July 13, 2023, it defines the investment strategy and activity plan of the Fund

Management Committee – approves the operating procedures of the Fund and individual operations

Decree of October 21, 2022 Methods of operation of the steering committee and methods of composition and functioning of the «Italian Climate Fund » steering committee.
Decree of June 15, 2022 Amendments to the decree of October 21, 2022, containing «Methods of operation of the steering committee and methods of composition and functioning of the "Italian Climate Fund" steering committee

Manager

Cassa Depositi e Prestiti was identified by the founding law as manager of the Fund

Interventions and initiatives

Italian Climate Fund can finance interventions:

- in the countries eligible for public development assistance identified by the OECD

- in line with the objectives and inspiring principles of Law 125/2014 which regulates the Italian system of International Cooperation

- in compliance with the guidelines of Italian foreign policy

The actions must contribute to achieving the objectives set by the international agreements on climate and environmental protection to which Italy has joined, both in the field of mitigation and adaptation.

The initiatives must be reported within the framework of the commitment of all advanced countries - including Italy - to mobilize at least 100 billion dollars per year in climate finance towards developing and emerging countries.

Among the types of intervention are identified:

Taking on venture capital
Granting of financing
Release of guarantees

Up to 40 million euros per year can be allocated to provide grants and cover the management costs of the Fund.

Grants may be used, among other things, for feasibility studies and impact assessments, project preparation and structuring, capacity building programs, technical assistance.

Updates

13/07/2023 Climate Fund: Steering Committee established