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IFC and Finland Announce New Partnership to Address Climate Change


In Washington, D.C.:
Name: Abiola Johnson
Phone: (202) 473-0660
E-mail: aojohnson@ifc.org


Washington, D.C., October 12, 2017—IFC, a member of the World Bank Group, is joining forces with the government of Finland to spur private sector financing for climate-change solutions, especially in low-income countries.

The Finland-IFC Climate Change Program includes a €114 million contribution from Finland, building on commitments made in the historic 2015 Paris Agreement on climate. It is expected to include climate-mitigation investments in renewable energy, energy efficiency, green buildings, climate-smart agriculture, and forestry. The program will also seek investments that support developing countries’ efforts to adapt to the effects of climate change.


"Climate change is clearly the defining challenge of our generation—to meet a challenge of this scale and urgency, we need significant private investments in areas where they are not seen today,” said Kai Mykkänen, Finland’s Minister for Foreign Trade and Development. “Finland is proud to become IFC's first European partner in blended climate financing. Our goal is to make a significant contribution to filling the investment gap in low-income countries.”


“Trillions of dollars are needed for the world to transition to a low-carbon economy,” said IFC CEO Phillipe Le Houérou. “This represents a significant investment opportunity for the private sector. But it requires a coordinated approach by governments and businesses—to remove barriers to the adoption of low-carbon technologies, strengthen policy and regulatory frameworks, and overcome investor perceptions of high risk. Our partnership with Finland is an important step toward those goals.”


The Finland-IFC Climate Change Program will help IFC move ahead with innovative, early-stage climate projects. It will build on IFC’s experience of using development partner funds alongside its own and its clients’ commercial financing in the form of blended finance, to catalyze private sector investments. The support from the government of Finland will be crucial for IFC to meet its ambitious targets to double its climate-focused investments over the next five years.


IFC plays a key role in advancing climate solutions led by the private sector. Since 2005, IFC has invested more than $18 billion in long-term financing for renewable power, energy efficiency, sustainable agriculture, and green buildings while supporting private sector adaptation to climate change. In the fiscal year that ended June 30, 2017, IFC provided a record $4.7 billion in climate-smart financing to businesses in developing countries—including funds mobilized from other investors.


About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org

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