One of the key goals of the Paris Agreement is to ensure that financial flows are consistent with a pathway toward low emissions and climate resilient development.
In 2020 IFC launched the Green Equity Approach (GEA) to help our financial institution (FI) clients continue to do business in a changing world. Under the approach, IFC has been working with FI clients where we have equity or equity-like exposures to increase their climate lending and reduce their exposure to coal-related projects in line with the Paris Agreement goals.
This year (2023) IFC is taking the next step towards alignment with the Paris Agreement ambition by introducing an update to the GEA under which IFC will start requiring a commitment from FI clients to not originate and finance any new coal projects.
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