Climate change is one of the greatest development challenges of our time. Left unchecked, it will push 132 million people into poverty over the next ten years. Further, the people who contribute the least to climate change will suffer the most from its effects. The world needs to cut its greenhouse gas emissions at an unprecedented speed and scale.
On the other hand, climate is also a major economic opportunity that can promote growth, create jobs, and accelerate the transition to low-carbon development. Our research shows that climate business can generate $23 trillion in investment opportunities, create 213 million cumulative jobs, and achieve 4 billion tons of CO2e reduction in developing countries. These opportunities exist in a wide range of sectors, including climate-smart agriculture, urban infrastructure, renewable energy and more.
Helping our clients tap into these opportunities and working with a host of partners to catalyze finance for climate action, is at the core of our business. In 2021, IFC delivered 32% in own-account climate finance and mobilized $3.7 billion for climate. This means that for every dollar of own account climate finance, we mobilized 93 cents from other investors.
Climate Change Action Plan (2021-2025)
The World Bank Group has a new Climate Change Action Plan to guide its work over 5 years. The Action Plan aims to increase climate finance to reduce emissions, strengthen climate change adaptation, and align financial flows with the goals of the Paris Agreement. The private sector and private capital are engines of sustainable development and drivers of the low-carbon transition. How can we tap into the opportunities they offer to support decarbonization and resilience?
From the World Bank
The impact of IFC climate business in FY20:
- $6.8 BILLION COMBINED MOBILIZATION AND INVESTMENT
- 8.1MILLION METRIC TONS IN ANNUAL GHG REDUCTIONS
- 111 CLIMATE SMART PROJECTS