IFC eclipses $10 billion in climate finance investments in financial institutions since 2006

IFC, a member of the World Bank Group, has surpassed $10 billion in climate finance investments in financial institutions in emerging markets since the fiscal year 2006, a milestone that reflects the Corporation’s commitment to green finance and the increasing demand in financial markets for climate-smart investments.

The $10 billion in investments in financial institutions has supported more than $50 billion in climate-related projects. Over half of the $10 billion occurred in the last three years alone.

This milestone is vital to IFC’s broader climate strategy. Overall, IFC provided $5.8 billion in climate-smart financing in fiscal 2019, including $3.2 billion mobilized from other investors. This accounted for 30 percent of the Corporation’s total commitments for the year. In the last five years, IFC’s total climate business commitments have amounted to $29.9 billion.

Mobilizing private capital will be critical to funding climate action, avoiding the catastrophic consequences of climate change, and delivering broad-based growth. The World Bank Group’s target is to invest and mobilize $200 billion over 2021-2025 to help countries address climate adaptation and resilience, doubling its commitments from the previous five years.

The $10-billion-plus in commitments to financial institutions, together with the advisory services IFC has provided since FY06, has led to pioneering projects in renewable energy, green buildings, and capital markets. It has also enabled an estimated annual reduction of 75 million tons in greenhouse gas (GHG) emissions from emerging markets. This is the equivalent to the annual GHG emissions of Austria or New Zealand.

“Reaching $10 billion in climate finance investments in financial institutions in emerging markets is an important milestone for IFC,” said Paulo de Bolle, Senior Director of IFC’s Global Financial Institutions Group. ”All of these investments align with the World Bank Group’s broader development priorities—whether it is increasing productivity of enterprises through energy efficiency investments, boosting energy access through renewables, or providing affordable housing through green buildings.”

IFC achieved another important milestone in September when it crossed the $10 billion threshold in cumulative green bond issuance on its balance sheet. Since 2010, IFC has issued 157 green bonds, totaling $10.1 billion.

Original source: IFC
Published on 25 November 2019