Climate Business

EXPERTISE

Climate Business

While low-carbon solutions are gaining traction, the world is still dangerously off-track when it comes to slowing down climate change.  Emerging markets – given their huge development needs and growing energy demand – will see a steady growth in greenhouse gas emissions over the next decade and are the most heavily impacted by climate change.

At a Glance

Press Releases

Our Approach

Paris Alignment

Climate is a major economic opportunity that can promote growth, create jobs, and accelerate the transition to low-carbon development in a wide range of sectors.

 

Too often, women’s private-sector participation is under-valued. Integrating women better into business operations can increase companies’ profitability and contribute significantly to shared prosperity. However, women have less access to equal employment opportunities and capital to grow their businesses, experience high levels of sexual violence, are often barred from owning or inheriting land or other property, and have less income to invest for the future.

 

The impact of IFC clients in FY20:

6.8 B
Combined mobilization & investment
111
In Trade Finance Volume
8.1 M
Metric tons in annual GHG reductions

 

At a Glance

Our research shows that climate business can generate $23 trillion in investment opportunities, create 213 million cumulative jobs, and achieve 4 billion tons of CO2 reduction in developing countries. 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 fiscal year 2022, IFC delivered $4.4 billion in climate finance and mobilized an additional $3.3 billion from other sources.

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Our Approach

IFC is helping to create markets for climate business in many countries, using its own capital, expertise, and local country knowledge to attract commercial capital. We are:

Setting standards

Credible standards inspire investor confidence and stimulate the flow of private capital. IFC has led pioneering work on global principles and industry-specific guidance that helped create climate business opportunities across sectors and geographies.

Promoting sustainable innovation

IFC has been at the leading edge of catalyzing private capital for development. Through our IFC 3.0, or Creating Markets approach, we use a wide toolkit of approaches to generate investable opportunities, from policy reforms to project development. We work together with the World Bank to create the greatest impact. And we crowd in the much-needed private capital.

Working to mobilize capital and achieve scale

As a global development organization, IFC is in a unique position to develop innovative financial solutions, and to connect our clients with partners and investors.

Press Releases

IFC and Paris Alignment

As of July 1, 2023, 85% of IFC’s new financial flows will align with the objectives of the Paris Agreement. This will increase to 100% starting July 1, 2025. IFC’s Paris Alignment commitment is in line with the Joint Multilateral Development Bank (MDB) Methodological Principles for assessing Paris Alignment developed together with other MDBs.