IFC Goes Carbon Neutral on World Environment Day

On June 5, 2006, World Environment Day, the whole World Bank Group becomes "carbon neutral." From this day forward, greenhouse gas (GHG) emissions from its Washington, DC offices, its Spring and Annual meetings, staff commuting, and all operational travel from headquarters will be offset through investments in renewable energy and energy efficiency, and through the purchase of verified emissions reductions from projects in developing countries.

As the private sector arm of the World Bank Group, the International Finance Corporation is part of this effort. This commitment is an integral component of IFC's corporate response to climate change. IFC is increasing its investments in projects that have sustainable energy benefits. It is also facilitating the participation of emerging market companies in the market for carbon credits under the Kyoto Protocol. The new IFC social and environmental standards require that IFC clients measure their greenhouse gas emissions. So, in keeping with its commitment to reducing carbon emissions, IFC will now offset its own carbon footprint.

The vast majority of IFC's carbon emissions are due to air travel and electricity use. Since December 2004, IFC has been purchasing green, renewable power for 100 percent of its electricity in the Washington office. The building was designed to be energy efficient, and received the U.S. Energy Star Label in 1999, 2001, 2004, and 2005, which means that it met the rising bar of being in the top 25 percent of energy efficient buildings in the U.S. for those years.

For the remaining emissions of 18,000 tons CO₂, IFC purchased carbon offset credits in the form of verified emissions reductions from projects by the Forestry Agency ("Moldsilva") in Moldova, and Precious Woods in Costa Rica. IFC chose offsets from forestry projects in recognition of the role of forests in addressing desertification—theme of this year's World Environment Day.

To track its carbon emissions and calculate the necessary amount of offsets to purchase, IFC partnered with the World Resources Institute to develop a GHG inventory. The methodology is based on the World Business Council for Sustainable Development (WBCSD)/WRI Greenhouse Gas Protocol Initiative, an internationally recognized accounting and reporting standard for GHG emissions. Details on IFC's first GHG inventory [PDF] can be found online as a supplement to its 2005 Sustainability Report.

IFC's purchase of carbon offsets began in fiscal year 2006, and is an ongoing commitment. While the current offset purchase is for operations in Washington, DC, IFC is strengthening methodology for tracking GHG emissions from its other 96 offices located around the world, which make up more than 30 percent of IFC's global office space. The intent is to purchase offset for emissions from global operations when more robust data is available.