Sustainability and Climate Change--Opportunities in Financial Markets

Sustainability and Climate Change: Opportunities in Financial Markets. Climate change poses a particularly high risk for people in developing countries, many of whom depend on agriculture, forestry, and fisheries for their livelihoods and have a limited or unreliable water supply. IFC has a unique role to play in helping our clients address risks and identify opportunities.

We are the largest global development institution focusing on the private sector, and a part of the World Bank Group. Our $18.3 billion net worth, our global focus and local presence, our world-class industry expertise, and our leadership in environmental best practice give us powerful advantages in assisting our clients. Through our financing and advisory services, we support private sector investment that applies creative solutions to complex problems.

Emerging markets represent more than half the opportunities available for greenhouse gas emissions reduction globally. Small emitters in these markets play a critical role in achieving these reductions, and their needs are best addressed through financial intermediaries (FIs). By providing our partner FIs with targeted investments and advisory services, particularly at the early stages of market development, IFC helps them to successfully develop new products that benefit the environment while adding to their bottom line. Through its client base of over 400 FIs, IFC has created innovative new structures in renewable energy finance and developed customized credit lines that help SMEs make energy efficiency upgrades, invest in cleaner production technology, incorporate sustainability standards into supply chains, and strengthen corporate governance standards.

Advisory services add value to IFC’s investment offering with specialized training to build internal capacity, seed investment pipelines, and support new product development. In 2008, IFC committed over $500 million to sustainability and climate change mitigation finance projects, solidifying our position as a global leader in this sector. Since 2003, IFC has mobilized over $2 billion in clean energy investments.

For more information about our work see Sustainable Energy Finance or contact us.