Climate Change

The interconnectedness of climate change, sustainable development, and equity poses serious challenges for developing countries, and can reverse the achieved results in poverty reduction. Without concerted action, the extreme weather events that today occur once in hundreds of years could become the new climate norm, causing increased risks and instability. The private sector can and must play a leading role in the struggle for a greener future. IFC opens markets and invests in renewable energy, energy and other resource efficiency, and green buildings.

In fiscal year 2018:

 - IFC invested $318 million in climate change related projects in Turkey, promoting modern energy efficient urban transportation (Antalya tramway), construction of green buildings (Isbank Green Mortgage, Akbank DCM Covered Bond), boosting energy efficiency capacity (TSKB Climate), helping companies to increase energy efficiency and utilizing innovative green financial instruments, such as green mortgages and green bond issue.

- IFC helped Ukraine develop a legal base for energy efficiency in residential sector. Adoption of the Law on Housing and Communal Services, developed with IFC advice, together with other legislation adopted in 2017, will create appropriate housing-sector market conditions to unlock the full demand for the energy-efficient modernization of the housing sector, estimated at roughly $50 billion.

- IFC provided a $30 million loan to Astarta, a leading agricultural producer in Ukraine, to help improve its environmental efficiency and strengthen its agricultural productivity and logistics as part of a broader effort to boost Ukraine's agribusiness sector and spur economic development.

- IFC signed a mandate with the government of Uzbekistan to increase its renewable power capacity and encourage private sector investment in Uzbekistan’s renewable-energy sector. As transaction advisor, IFC will advise the government and the state-owned national power utility, Uzbekenergo on structuring a PPP to mobilize private sector experience and capital to construct and operate a 100-megawatt solar plant. That will be the first phase of a larger initiative to generate up to 1-gigawatt of new solar energy.

- IFC signed an advisory agreement with Electric Networks of Armenia, the sole electricity distribution company of Armenia, to help increase efficiency of the company’s investment program that is expected to ensure reliable and steady supply of power to customers.

- IFC conducted a diagnostic for Georgian Water and Power (GWP), Georgia’s leading water utility. The diagnostic identified specific opportunities to save water, lower energy costs and increase efficiency.

- IFC signed an agreement with Thor Impeks, to support the development of the first privately financed electricity generation wind power plant in Macedonia. The wind farm Bogoslovec received an authorization permit for construction, which is a breakthrough achieved with IFC advice.

- IFC and EBRD helped Serbia boost its renewable energy production and improve its energy mix by providing a €215 million lending package to a joint venture developing a 158-megawatt wind farm, the largest in the Western Balkans. The project is expected to improve electricity for some 113,000 homes and businesses.

- IFC lent €19.1 million to Elicio, a subsidiary of Nethys Group, for the 42-megawatt Alibunar wind farm in Serbia. Unicredit, the Netherlands Development Finance Company (FMO) and Green for Growth Fund (GGF) have agreed to provide a further €40 million in B Loans to the project. The project will help Serbia meet its obligations under the Energy Community Treaty to have 27 percent of energy consumption from renewable sources by 2020.

 

Examples of What We Do:

Serbia’s New Wind Farms Convert Potential into Power

Armenia’s Energy Infrastructure Remakes Itself with Renewables

 

Resources:

Infographic: Going Green in Ukraine