International Finance Corporation (IFC)

The private sector arm of the World Bank Group. It provides loans, equity, and risk guarantees for private sector projects. Around 40 per cent of IFC investments are channeled through financial intermediaries. The vast majority of IFC funding is raised through issuing bonds on international capital markets. As of 2012, this includes a green bonds scheme worth around $1 billion.

The IFC has a growing climate finance portfolio. It has offered loans and risk guarantees to over 340 renewable energy and energy efficiency projects since 2005, worth an estimated $11.6 billion.

The largest of the IFC’s carbon funds, the post-2012 Carbon Facility, attracted $195 million in private investment (on top of $22 million of IFC funds), but has since lost 75 per cent of its value due to a collapse in carbon credit prices. The IFC also manages a handful of other carbon funds.

Climate change-related investments are also at the forefront of the IFC’s private equity portfolio, with 12 climate-focused funds estimated to be worth $225 million as of mid-2012.

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