The case for investing in climate business has never been stronger.
Already, global markets for climate-smart businesses and technologies have grown to $1 trillion annually. This growth is expected to accelerate, delivering environmental and social benefits while creating value for investors. Analysis by IFC shows that 21 emerging market economies alone hold $23 trillion in climate-smart investment opportunities through 2030. A deep dive into urban investments found that cities across emerging markets could attract more than $29 trillion in green buildings, public transport, electric vehicles, waste management, water treatment and renewable energy.
As the largest development finance institution supporting the private sector in emerging markets, IFC is uniquely positioned to build new markets for climate business. We invest directly in climate-smart sectors, developing new de-risking and aggregation mechanisms, and engaging public and private sector stakeholders through international forums and working groups. In doing so, IFC is mainstreaming climate business in high-growth sectors - opening new markets in key areas such as clean energy, sustainable cities, climate-smart agriculture, energy efficiency, green buildings, and green finance.
IFC does not work alone. We collaborate directly with governments, the private sector, financial institutions, and other development banks. In addition, IFC is backed by a World Bank Group commitment to increase climate-related investments by 28 percent and mobilize $13 billion in private sector capital by 2020. At the 2018 UN Conference of the Parties in Katowice, Poland, the World Bank Group announced new targets for FY21-25, doubling its climate investments to around $200 billion, a total that includes about $67 billion in mobilized private capital.
IFC and the Hong Kong Monetary Authority hosted a two-day webinar on climate business and green banking. As countries work to recover from the COVID-19 pandemic, business executives and thought leaders presented innovations in climate-smart technologies and business models and discussed leading solutions to green your business.
The response to COVID-19 may not only minimize pain and suffering now, but can also build the foundation for a greener, safer, and more prosperous future. World Bank’s Stéphane Hallegatte and Stephen Hammer reflect on a sustainable recovery from COVID-19.
The impact of IFC climate business in FY19: