Sustainable Finance saw unprecedented growth in 2021, reaching over $1.6 trillion in total annual issuance—more than doubling 2020 volumes. This growth came as the UN’s 26th Conference on Climate Change highlighted the need to mobilize finance at a faster pace to meet the 2030 Agenda for Sustainable Development, especially in developing countries. Sustainable Finance is a powerful tool for raising capital in support of private sector climate goals in emerging markets, through use-of-proceeds, such as green, social, or sustainable bonds, or through target-driven instruments, such as sustainability-linked bonds.

IFC brings unrivaled expertise for such financing, leveraging in-house knowledge on climate and social issues, access to blended finance and local currencies, and funding for pre-investment work. Our market-making track record includes the development of widely-used impact metrics such as the Harmonized Indicators for Private Sector Operations (HIPSO) and a tool to measure our own development impact—the Anticipated Impact Measurement and Monitoring (AIMM) system. As chair of the Sustainable Finance Executive Committee for International Capital Market Association (ICMA), and through our involvement in the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA), we have played a key role in the publication of important guidance to support the development of Sustainable Finance, such as ICMA’s Sustainability-Linked Bond Principles and LMA/APLMA’s Sustainability-Linked Loan Principles.

This deep and broad experience allows IFC to provide a holistic offering for Sustainable Finance products, adding value well beyond the market-standard role of sustainability coordinator.