Compared with the total investment required over the next fifteen years to meet the goals set by the Paris Agreement, the climate finance gap is $2.5 – 4.8 trillion. Bridging this gap would require an additional $166 – 322 billion per year based on current investment estimates*.
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
Adherence to international best practices in managing environmental and social risk and performance in lending and investments
IFC has been piloting successful green finance models in China, 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.