There has never been a better time for private firms and the banks that finance them to make profitable investments in sustainable development. IFC’s financial partners are finding success in new climate-smart market segments while their clients reduce risk, lower operating costs, and become more resilient to the impacts of climate change and economic uncertainty.
For high-risk projects with a big climate impact, IFC co-invests concessional funding provided by the Global Environment Facility, the Climate Investment Funds and bilateral sources such as Canada alongside its own funds.
IFC Treasury is a leading issuer of green bonds, whose proceeds support investments in renewable energy, energy efficiency, and other climate-related areas.
Engaging Institutional Investors
IFC works with investors to help them identify, gauge and act on climate change risks and improve the resilience of their investment portfolios.
To scale up low-carbon investments, IFC supports development of innovative investment structures and de-risking techniques that meet institutional investors’ needs for risk-adjusted returns, diversification, ticket size and liquidity. The IFC Catalyst Fund and Green Bonds are examples of such investment products.