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IFC's Climate-Smart Investments Hit Record $2.5 billion in 2013


Supporting climate-smart private sector opportunities is a key priority for the World Bank Group.  Last fiscal year, its private sector arm, IFC, committed $1 billion in renewable energy, $1.2 billion in energy efficiency, and $250 million in other climate mitigation – a 55% increase over fiscal year 2012. We also made our first climate adaptation investment, helping a client company confront water scarcity. In the same year, IFC launched the world’s largest green bond ever, mobilizing $1 billion in institutional funds. Complementing our financing, 24% of IFC advisory service projects had a climate-smart component.

 

Renewable Energy Investment Highlights

 

  • Concentrated solar in South Africa - IFC provided a $143 million loan package and $264 million in third-party finance for the award-winning Khi Solar One and KaXu Solar One concentrated solar plants, the first use of this technology in Sub-Saharan Africa.

 

  • Wind in Croatia - Increasing Croatia’s wind energy production 16%, IFC brought a €15 million loan package and €23 million in finance mobilization for the 30 MW Jelinak wind farm.

 

  • Merchant solar in Mexico - Unlocking the country’s tremendous solar potential, IFC loaned $25 million to Aura Solar plant, the first merchant solar plant in Mexico.

 

  • Biogas in Ukraine - IFC’s investments in leading agricultural and meat producers in Ukraine – Astarta and Axzon - included $4.6 million for biogas facilities, reflecting IFC’s commitment to improve agribusiness efficiency and contributing to global food security. 

 

  • Climate-smart trade - IFC provided a record $550 million to support the trade of goods and services that enable deployment of climate-smart technologies ($385 million for RE technologies).

 

Energy Efficiency Investment Highlights

 

  • Green buildings market transformation program - In addition to executing over $400 million in financing for construction of green buildings, IFC launched a partnership with the World Green Building Council to promote green buildings through a simple, low-cost design and ratings tool.

 

  • Gas power in Côte d’Ivoire - IFC provided a $125 million loan and $220 million in third-party finance for Azito Energy gas power plant, responsible for one third of the country’s electricity. Efficiency upgrades allowed the plant to increase output by 50% with no additional gas use.

 

 

  • Sustainable energy financing in China - Together with IFC, China’s Ministry of Finance, the Jiangsu Provincial Finance Department and the China Clean Development Mechanism Fund are providing $ 73 million for a risk-sharing facility with Bank of Jiangsu to grow sustainable energy financing in China.  In fiscal year 2013, IFC invested $225 million alongside advisory services through the CHUEE program.

 

  • Green power for mobile - IFC made a $12 million equity investment in Flexenclosure, a company that helps fast-growing mobile-telephone operators and tower companies in developing countries make greater use of renewable energy and cut energy consumption.

 

Advisory Highlights

 

  • Water efficiency in India - IFC partnered with Tata Quality Management Services to develop strategies to improve water efficiency and promote sustainable water use at 11 plants across India.

 

  • Biogas in Pakistan - IFC advised a Pakistan-based biogas company on the development of a waste-to-energy plant in the Karachi area.  The follow-up investment by IFC turned a serious environmental problem into a renewable energy resource.

 

  • Sustainable energy financing in South Africa - Following a $10 million credit line, IFC is assisting Sasfin Bank to develop financial products that will help smaller business in South Africa become more energy efficient and more competitive.

 

  • Energy efficiency in Russia - IFC has to date facilitated $312 million of resource efficiency investments in the Russian industrial sector.

 

  • Hydropower in Albania  - IFC’s PPP team successfully closed climate projects that will mobilize over $785 million in private sector investments, for example by advising on the privatization of hydropower plants in Albania.  Our advisory team also worked on the enabling environment for small hydro and launched a capacity building program with local banks and project developers, further unlocking the country’s hydropower potential.

 

IFC has committed to make 20% of its long-term finance and 10% of its short-term finance climate-related by fiscal year 2015. For more on IFC’s work in climate change, please see our website and follow us on Twitter.

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