IFC and Climate Change

IFC works to support renewable power, energy efficiency, and other climate-smart solutions for developing countries. IFC has invested more than $13 billion in climate-related projects since 2005, including about $2.5 billion in fiscal 2014. Specific initiatives illustrate the ways in which IFC is responding to the need to address climate change through private sector approaches:

• Leveraging climate financing. IFC is helping commercial banks in Armenia, China, Lebanon, and elsewhere increase their lending for clean and efficient energy and is working to support trade finance for climate-related goods and services.

• Green bonds. IFC's Treasury has issued more than $3 billion in green bonds, including two $1 billion issuances in 2013, and is working with investment banks and other issuers to grow the market for this new asset class.

• Catalyst Fund. IFC's Asset Management Company has raised some $400 million from six investors, including sovereign wealth and pension funds, for this private equity fund of funds supporting renewable energy and energy efficiency.

• Blended finance. In rare circumstances, IFC uses funds from donor governments to invest in high-impact climate projects on concessional terms to help overcome market barriers or perceived risk that would otherwise make projects impossible.

MIGA and Climate Change

MIGAs work to reduce the impact of climate change focuses on moving developing countries onto a lower carbon path by exploiting renewable energy resources, supporting energy conservation, and increasing efficiency. MIGAs added value is especially evident in green infrastructure development. MIGA is supporting energy transformation by insuring sustainable power investments in all regions of the world. Geothermal energy in Kenya, wind energy in Nicaragua, waste-to-energy in China, hydropower in Angola and Pakistan, and public transport in Panama and Turkey—these are all examples of MIGA-insured projects that demonstrate the Agency's commitment to this critical sector.

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