Climate Finance for Financial Institutions

IFC works with financial institutions around the world to increase climate-related investments.

IFC is the largest development finance institution supporting the private sector in emerging markets, and our Climate Business work allows us to invest directly and partner with financial institutions in climate-smart sectors. We collaborate with governments, the private sector, financial institutions, and other development banks in an effort to increase climate-related investments.

IFC partners with financial institutions to deploy capital, mostly in the form of loans to businesses and other organizations, to implement climate-friendly projects. 

There are trillions of dollars in climate-smart investment opportunities in emerging markets. Financial institutions will need to provide the majority of the capital for these opportunities, helping enable the transition to a low-carbon global economy. 

As of June 2024, IFC has committed $18.5 billion from our own account to climate related projects through more than 160 emerging market financial institution partners. These investments support partners in avoiding GHG emissions of 24.33 million tons per year. In addition, IFC’s advisory services facilitate global client financial institutions to build climate finance portfolios, avoiding additional millions of tons in annual GHG emissions.