The International Climate Initiative (IKI)

International Climate Initiative (IKI): It is the primary mechanism through which Germany provides financial support for climate and biodiversity projects in the Global South. Since 2022, the program has been jointly managed by the Federal Ministry for Economic Affairs and Climate Action (BMWK), the Federal Ministry for the Environment (BMUV), and the Federal Foreign Office (AA). It focuses on turning national pledges into tangible sectoral results, particularly through "Large Grants" and "Small Grants" competitions.

Latest Update: Germany and India have launched a new large grant project approx. ₹180 crore (€20 million) to the International Climate Initiative also known as IKI  to strengthen India’s climate resislence especially targets high-risk Indian ecosystems such as The Himalayas, Western Ghats, North-East Indian and Gangetic Floodplains. 

What is the International Climate Initiative?

The international Climate Initiative (IKI) is a major pillar of Germany's international climate finance, supporting developing and emerging economies in implementing the Paris Agreement and the Convention on Biological Diversity (CBD).

It enables partner countries to achieve and raise their Nationally Determined Contributions (NDCs). It bridges the gap between high-level policy and local implementation by financing projects including renewable energy expansion in India to mangrove restoration in Mexico.

Key Objectives:

• Achieving net-zero greenhouse gas emissions.

• Strengthening resilience to climate change impacts.

• Halting the loss of global biodiversity.

More about International Climate Initiative (IKI)

• Established in 2008 by the German Bundestag originated as funded by emissions trading into a cornerstone of Germany’s federal budget financing over 1,000 projects with a total volume of approximately €7.5 billion over the last 18 years.

• The aim is to help partner nations implement their Nationally Determined Contributions (NDCs) under the Paris Agreement and meet the targets of the Kunming-Montreal Global Biodiversity Framework.

• The German government lead-managed by 

• The Federal Ministry for Economic Affairs and Climate Action (BMWK).

• the Federal Ministry for the Environment (BMUV)

• the Federal Foreign Office (AA)

• The IKI supports climate and biodiversity projects in over 150 countries across the Global South, focuses 80% of its bilateral funding on 14 Priority Countries including giants like India, China, and Brazil to maximize global emission reductions.

• The IKI operates through a collaborative model, partnering with NGOs, business sectors, and research institutes to ensure that climate action is both technically sound and locally rooted.

Strategy of the International Climate Initiative up to 2030

The IKI Strategy 2030 outlines the program's evolution toward greater impact. Key pillars include:

• IKI’s geographical focus and concentrating roughly 80% of bilateral funding on 14 priority countries including Brazil, China, India, Indonesia, South Africa, and Mexico which represent nearly 50% of global emissions.

• It generally focuses on thematic priorities projects aligning with the "Global Biodiversity Framework" (GBF) and the "Climate Club." Shifting from ambition to action emphasizing sector-wide decarbonization in energy, industry, and transport.

The International Climate Initiative In  2022 to Present

In 2022 was a "transformation year" for the IKI, during which it integrated the Federal Foreign Office into its leadership structure.

IKI spent €675 million and launched 125 new projects despite the organizational reshuffle. In late 2025, a new "Large Grants" call was launched with a deadline of February 17, 2026, focusing on electricity storage in Mexico and forest resilience in India. the IKI is prioritizing "NDCs 3.0" to ensure countries submit more ambitious climate targets by 2025/2026.

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