Washington, D.C., December 11, 2017
—IFC, a member of the World Bank Group, has signed an agreement with the Green Climate Fund that will enable IFC to pool its resources with those of more than 40 governments that have contributed about $10 billion to support investments in climate change mitigation and adaption projects in developing countries.
The Green Climate Fund is a facility set up by the United Nations to help developing countries meet their climate goals. It makes innovative use of blended finance, relying on public investment to stimulate private finance. IFC, which became an accredited entity of the fund in 2016, is one of the world’s largest financiers of renewable energy for developing countries and is also active in resource efficiency, green buildings, climate smart agribusiness, and innovative finance such as green bonds.
“Climate change is a global threat,” said IFC CEO Philippe Le Houérou. “Addressing it requires a vast increase in financing—far beyond the capabilities of governments alone. That’s why IFC’s partnership with the Green Climate Fund is an important step. It will enable us to use relatively small amounts of public funds to leverage significantly larger private sector resources to scale-up climate-smart investments.”
“I am confident IFC’s expertise in the private sector will help expand GCF’s capacity to help overcome key financial barriers,” said Howard Bamsey, the Executive Director of the Green Climate Fund. “This will pave the way for investments at scale in climate action where they are most needed.”
IFC has committed to increase its climate financing to 28 percent of its portfolio by 2020—up from about 25 percent currently. Since 2005, IFC has invested more than $18 billion in long-term financing for renewable energy, energy efficiency, sustainable agriculture, and green buildings, while supporting private sector adaptation to climate change.
In the fiscal year that ended June 30, 2017, IFC provided a record $4.7 billion in climate-smart financing to businesses in developing countries – including funds mobilized from other investors. Through its advisory work, IFC enabled $630 million in climate-related investments in power, resource efficiency, and public-private partnerships.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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