Climate is not a special topic that can be treated in isolation of all the other development agenda items of interest to IFC. Population Growth, environmental pressures, and urbanization are putting significant pressures on valuable resources such as water, energy, food and land. Climate change is central to the fragile nexus between energy, water and food security, and will significantly impact economic development going forward. The linkages are illustrated in the examples below:
More deforestation results in less arable land for food production which puts pressure on food security, as productivity of land will have to increase by 71% to sustain the population.
To produce 1 calorie of food it takes 1 liter of water. Over the next 40 years, the global demand for food is expected to double, which implies that the amount of water to achieve global food security will also have to double.
It takes approximately 500 billion liters of water per day to generate electricity. As water becomes increasingly scarce, the production of electricity becomes impacted and thus energy security.
Better coordination, more unified and reinforced action, and common strategies are still needed across the public, private and non-profit sectors to move the global sustainable development agenda forward. Given the scale of investment required, partnerships between governments, civil society and multilateral investment institutions are necessary. This is where IFC plays a role by strengthening these ties and building for the future.
Green building is the practice of increasing the efficiency with which buildings use resources such as energy, water, and materials while also reducing the building’s impact on human health and the environment. While environmental pressures are compelling reasons to build responsibly, green buildings create additional rewards that are a win-win for all.
IFC contribution to scaling up both supply-side and demand-side energy comes through a variety of investments and advisory projects in areas such as power grid automation of the power grid, load management, power plant efficiency, smart metering, and others.
IFC helps clients take full advantage of industrial efficiency techniques by offering advice to optimize facility and process design, identify retrofit opportunities, and explore alternative energy and other resource efficiencies (e.g. water).
IFC has prioritized investments and advisory in energy efficient machinery in order to help reduce poverty by expanding access to alternative and affordable sources of electricity, to encourage infrastructure expansion, and to mitigate the impacts of climate change.
From local farmers to global markets, IFC’s aims to reduce national and global value chain risks and increase market access of firms by helping them reduce costs, environmental impact, and risks along the production chain.
Water is a unique that it has no substitute impacting all aspects of life and business operations be it a thermal power plant, a food processing plant or an oil refinery. IFC takes into account the nexus between water and energy in providing investment advice to clients on sourcing new supply or using water more efficiently.