To achieve global climate targets and support real-economy transition, tremendous financing is needed that cannot be met by the public sector alone. In order to be on track to limit global warming to 1.5°C, it is estimated that the world needs to invest at least US$4.3 trillion per year by 2030.
The Alliance is a key initiative in this context, with a primary focus on financial institutions (FIs) in emerging and developing markets. It aims to build market capacity by equipping commercial banks with expertise, skills, and tools to steer their business and investments towards low-carbon activities.
IFC’s extensive global experience and local market knowledge in climate finance and sustainability risk management allows the Alliance for Green Commercial Banks (the Alliance) to support financial institutions with:
Growing financial institutions’ green portfolios
Designing new products and services for green projects and businesses
Improving employees’ knowledge capacity on green finance
Reducing and off-setting financial instituions’ carbon footprints
Screening portfolios against a 2-degree transition pathway and exposure to climate risk
Understanding best practices in managing environmental and social risk and performance in lending and investments
IFC has been piloting successful green finance models in Asia, Ukraine, and some parts of Latin America. Leveraging IFC's expertise, the Alliance aims to inspire more financial institutions globally to explore differentiated and distinctive green development paths that meet a robust and credible standard. If successful, this will reshape the green finance market globally and mobilize more resources in climate-related industries to reduce GHG emissions.