Emerging economies need nearly $3 trillion annually by 2030 to adapt to the changing climate.
The catch? The lion's share of this essential funding must come from private sources. However, regulations to encourage markets are moving slowly and projects in emerging markets often don't align with investor expectations due to steep initial costs and inherent risks associated with mitigation and adaptation initiatives.
Our Approach
Convening and Standards
IFC was one of the earliest issuers of green bonds and continues to drive innovation in sustainable finance by helping set market standards, developing new financial products, and scaling existing solutions. By the end of FY26, IFC had issued US$17 billion through 231 green bonds and taps in 24 currencies and US$16.5 billion through 116 social bonds and taps in 17 currencies. In addition to issuing its own bonds, IFC actively invests in labeled bonds and loans and develops innovative fund structures to mobilize institutional capital at scale. IFC also supports capacity building across the financial sector and publishes guidance and frameworks covering emerging sustainable finance themes, including blue finance, biodiversity and nature, circular economy and green enabling activities.
Pipeline Creation
IFC has created a long-term pipeline of new climate projects to unlock markets across over 100 countries. IFC identifies market barriers and distortions affecting capital allocations through the World Bank Group’s diagnostic reports, advises the public sector on how to design climate-friendly public-private partnerships, and works upstream to develop projects, partner with clients and structure PPPs. IFC also is working to advance circular economy finance , helping businesses and financial institutions adopt circular practices and scale solutions that design out waste, keep materials in use, and regenerate natural systems. In addition, IFC offers standardized approaches such as our flagship Scaling Solar program, and a wide range of renewable energy solutions to help governments and developers quickly bring projects to fruition.
Mobilization
IFC invests its own money in climate projects and puts into place investment funds that help institutional investors achieve their “risk-return” objectives in new areas. Our innovative platforms make it easier for commercial banks, pension funds, insurance companies and sovereign wealth funds to invest alongside us and gain an opportunity to diversify their portfolios and access new markets.
Reducing Risk
IFC's blended concessional finance mobilizes private capital in emerging and developing markets by absorbing early-stage, technology, and market risks that commercial investors won't bear alone. It supports clean energy, industrial decarbonization, and sustainable infrastructure, and it incentivizes higher environmental standards. By demonstrating viability and building track records, it paves the way for future private investment without concessional support.
From FY18 to FY26 IFC committed over $5.8 billion in blended finance to support over 600 high impact projects, mobilizing $35.3 billion, with overall 6.1x leverage. This includes $17.6 billion from IFC’s own account, $11.5 billion in private capital mobilization, and $6.3 billion in public mobilization. IFC catalyzes an average of $8 in commercial funding for every dollar of blended climate finance deployed. Our Advisory and Upstream solutions support clients in anticipating risk, enhancing capacity and preparing longer-term solutions/opportunities.
Last updated: October 2025