Banks and other financial institutions from countries such as China, Thailand, and Vietnam are increasingly investing in cross-border hydropower projects in the Mekong region. IFC wants to help interested banks lower risk by improving their environmental and social management systems and adopting environmental and social guidelines for their hydropower investments.
To achieve this, IFC has been organizing knowledge-sharing workshops on environmental and social risk management for banks investing in hydropower. IFC works with the Thai Bankers’ Association to help Thai banks better manage financing risks, particularly for hydropower projects in the Mekong region through capacity-building trainings.
In China and Vietnam, IFC partnered with government and banking regulators to launch their green-credit policies to help the financial sectors achieve greater sustainability. With a green-credit policy in place, financiers interested in hydropower development can be assured of the sustainability of their investments as IFC works to extend these to cross-border activities.
The IFC Performance Standards, which lay the foundation for the Equator Principles, help our clients improve the sustainability of their projects. For example, Performance Standard 1 provides clients with guidance on how to identify overall risks and impacts as a first step to mitigating and managing risk.
Financial institutions that would like to learn more about the benefits of adopting environmental and social guidelines for hydropower investments can contact us.