2015 Online Report. Private Sector Impact. By International Finance Corporation. World Bank Group.
Climate change will hit developing countries hardest — posing significant threats to their efforts to tackle water, energy, and food-supply needs.
Developing countries will need large sums of money to cope with climate change: up to $1 trillion a year. The private sector has an indispensable role to play, and IFC is at the forefront in mobilizing private capital to address climate change.
We provide finance and advice for energy-efficient and renewable-energy solutions — such as green buildings and solar power. Since 2005, we have made long-term investments totaling more than $13 billion in climate-related projects. This includes $2.3 billion in 103 projects in 31 countries in FY15. We also mobilized $2.2 billion from other investors.
We are working with governments, companies, and investors to prepare for likely changes in the way the world manages carbon emissions. This year, 190 governments will come together to try to reach a global agreement to cut greenhouse emissions. We’re advising our clients on how to navigate carbon pricing and carbon trading and leverage carbon funds.
In Panama, we agreed to provide a $300 million financing package to help set up the largest wind farm in Central America — the Penonomé Wind Project. The planned 337.5-megawatt power plant will cut energy prices and reduce Panama’s dependence on fossil fuels. The project will make an important contribution to reducing carbon emissions.
In Jordan, we arranged $207.5 million for a solar-power project — the largest private sector–led solar initiative in the Middle East and North Africa. Of that amount, $116 million was mobilized from other lenders. Under the project, seven solar photovoltaic plants will be built, cutting carbon emissions and providing 102 megawatts of power.
We are one of the largest issuers of green bonds — those that support climate-smart investments, including renewable energy and energy-efficiency projects. In September 2014, we launched a program that for the first time allowed U.S. individual investors to buy triple-A-rated IFC bonds that support such projects in developing countries. In all, we have issued a total of $3.75 billion in green bonds.
We also raised $418 million for the IFC Catalyst Fund — managed by IFC Asset Management Company — which invests in funds that support companies developing innovative ways to address climate change. In FY15, the fund invested $25 million in a private equity fund that aims to raise $125 million for clean-energy projects in Chile, Colombia, and Peru.
We partnered with the Shell Foundation to invest in a fund — with initial capital of $30 million — to finance companies offering off-grid solar-power systems, mainly in Asia and Africa. The fund aims to improve the livelihoods of nearly 20 million people over the next three years. This complements the joint IFC and World Bank efforts to build a new market for off-grid solar lighting and services through our Lighting Global program.
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