IFC's aim is to lower market barriers that affect the ability of the private sector to contribute to sustainable development. These include the higher costs and higher risks sometimes associated with new technologies, lack of information on best practices, and regulatory barriers. IFC's sustainability innovation strategy therefore rests on the following guiding principles:
Innovation: Pioneer new models and take risks that the private sector is unable to do
Private sector: Support private businesses in their adoption of sustainable practices
Demand driven: Respond to private sector needs
Demonstration: Support innovative projects with the potential for commercial replication
Partnering: Leverage funding from various sources and attract private sector interest
Mainstreaming: Roll projects out into mainstream IFC and other commercial sources
Capacity building: Ensure that local capacity has been put in place for client and local institutions/consultants to sustain the work
Complementarity: Work with international partners (multilaterals, bilaterals and international NGOs)
Minimum subsidy: Ask for client contribution commensurate with their capacity
