Supporting Climate-smart Investments

 

 

IFC started tracking the climate-smart components of its investments and advisory services in 2005. Since then we have provided about $13 billion in long-term financing for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.

In FY15, 22 percent of IFC’s long-term financing was climate-smart, exceeding its publicly stated target of 20 percent. Total climate-related investments reached  $2.3 billion, covering 103 climate investment projects in 31 countries. We mobilized a record $2.2 billion from other investors, reflecting a growing appreciation that clean energy, resource efficiency and climate change adaptation represent areas of opportunity for us and our clients. As a result, $4.5 billion was invested through IFC’s direct involvement.

  • Renewable power: : IFC has co-financed more than 2,700 MW of wind power, more than 1,200 MW of solar, and close to 6,000 MW in hydro power in places including China, India, Pakistan, Jordan, South Africa, Chile, and Mexico. Renewable energy is consistently two-thirds of IFC’s direct power investments (excluding IFC investments through financial intermediaries), and exceeded 70 percent in FY15.
  • Resource efficiency: IFC invests in process improvements and other technology to reduce energy, water, and other resource use in sectors such as cement, metals, pulp and paper, chemicals, construction, and power generation.
  • Green buildings: As part of its focus on cities, IFC’s EDGE (Excellence in Design for Greater Efficiencies) certification program supports green building codes and standards, finances the construction of green homes, hospitals, and schools, helping banks increase their mortgage and other lending for green buildings. The goal is to make the benefits of green buildings clearer to builders, bankers and buyers, and to change behaviors and decisions accordingly.
  • Clean technology: IFC provides seed financing and equity for companies supplying clean technology solutions, such as metal-air batteries that can replace diesel generators.