Priority Sectors
As part of the World Bank Group’s Climate Change Action Plan for 2021-2025, IFC is focusing its efforts on five key systems responsible for over 90% of global greenhouse gas emissions: energy; agriculture, food, water and land; cities; transport; and manufacturing. These systems are the backbone of our economies, so making them more sustainable, resilient and inclusive is critical. To marshal the capital needed for decarbonizing these sectors, IFC is also developing innovative green finance solutions that will increase the size of the market.
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Energy
IFC is working to create private sector opportunities in wind, solar, hydropower and other forms of renewable energy. We are also investing in transmission, distribution, and energy efficiency. And we are exploring promising innovations—like battery storage and green hydrogen.
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Agriculture, Food, Water and Land
Recognizing the importance of climate-smart agriculture, IFC is working with our private sector clients to help improve productivity, and reduce inputs and post-harvest losses – which account for a significant portion of greenhouse gas emissions. Importantly, IFC is also working to expand private sector solutions to protect biodiversity and ecosystems, and promote adaptation.
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Cities
IFC is working closely with private companies and municipal clients to unlock investment opportunities from infrastructure to waste management and to make cities more livable. We are also setting standards and creating markets in green residential and commercial real estate through our green building certification, called EDGE. Our new green cities initiative, APEX, is helping cities prioritize and accelerate policy actions and investments that support the transition to a low-carbon urban growth pathway.
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Transport
IFC is scaling up its work with electric buses, rail links, and other climate-friendly solutions for public transit in cities. And we are investing in energy-efficient equipment and green buildings in ports, airports and shipping terminals, in addition to expanding our climate-related investments in e-logistics.
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Manufacturing
IFC is working with corporate clients in manufacturing to help them decarbonize, through circular economy interventions, use of renewable energy, and other innovations. We will increasingly work to decarbonize heavy industries like steel, chemicals, and cement where the lion’s share of greenhouse gas emissions is found.
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Finance
IFC works with governments, the private sector, financial institutions and partners to set standards for green banking, expand the range of financial instruments and channel global capital flows to opportunities in emerging markets. IFC is a leader in the green bond market, and issues a range of products, from blue and sustainability-linked loans to approaches for greening equity investments.
