The Cleaner Production Lending Facility (CPLF, the Facility) is a proposed three year, US$125 million loan facility to finance Cleaner Production (CP) investments globally among IFC portfolio clients in good standing. The Facility will build upon and scale up the Cleaner Production Lending Pilot (CPLP), a US$20 million facility approved by IFC’s Board in 2007 to promote CP investments among IFC portfolio clients. The scale up is made necessary by the successful utilization of all funding made available under the pilot and strong demand from IFC’s clients for continued support in identifying and financing CP projects. Like the pilot, CPLF will support investments in energy efficiency, use of renewable energy, recycling, water saving and use of clean tech solutions for IFC clients across a range of sectors and regions. Client demand for the integrated CP loan and advisory services offering developed under CPLP is due to the cost-saving and typical short payback characteristics of CP projects and the opportunity they give clients to improve their competitiveness and “green” their image. The CPLF will finance these high impact CP projects through a streamlined CP loan process established under the pilot. A complementary advisory services project will support CP audits for clients (co-funded using donor funds) who require technical support to identify CP projects. CP is the improvement of operational processes to make more efficient use of inputs such as raw materials, energy and water along a company’s value chain. Effective CP interventions: i) reduce resource consumption at the source and hence waste and environmental impact, thus reducing or eliminating the need for costly end-of-pipe solutions; and ii) improve operating efficiencies and reduce operating costs. Many CP projects also reduce CO2 emissions, thus helping to mitigate climate change.