The World Bank Group recently launched the Pilot Auction Facility for Methane and Climate Change (PAF), an innovative pay-for-performance instrument that will use auctions to maximize the use of scarce public funds to reduce greenhouse gas emissions.
Climate change is not just an environmental challenge – it is a fundamental threat to development in our lifetime. The World Bank Group has made confronting climate change a top priority in our push to eradicate extreme poverty and boost shared prosperity. At IFC we are stepping up our investments in climate change mitigation and adaptation and helping our clients understand and manage the risks and opportunities climate change presents.
Since 2005, we have invested more than $11 billion in long-term financing in 550 climate-related projects that have helped developing countries meet their energy needs while supporting a green growth path. IFC made its first investment in renewable energy in 1989 and is now one of the world’s largest financiers of wind and solar power for emerging markets.
Nearly 20 percent of IFC’s long-term financing was climate-smart in fiscal 2014. IFC’s total climate investments were $2.5 billion,matching last year’s record, with projects committed in 35 countries. All told, IFC’s F14 climate commitments are expected to reduce at least 5.5 million metric tons of greenhouse gas emissions – equivalent to taking more than 1 million cars off the road. The funding in FY14 supported a large-scale, game-changing solar power in Chile, green buildings in Kenya plus innovative financing for renewable and clean power through commercial banks. IFC is also working to leverage new sources of funding for green growth through its green bonds program as well as through the Catalyst Fund and its co-investments with governments through its blended finance work.