International Finance Corporation (IFC) - Blended Concessional Finance for Climate

Climate change is a major risk to good development outcomes, and the World Bank Group is committed to playing an important role in helping countries integrate climate action into their core development agendas. IFC began using blended concessional finance in 2005 to help investors manage the higher risks or uncertainties associated with new, unproven technologies or first-of-their kind projects. To make progress on the climate agenda, at a scale that is needed in a narrowing window of opportunity, private sector participation is essential. IFC has a proven track record of mobilizing and intermediating concessional finance through successful partnerships that work toward the transition to a low-carbon future.

IFC offers four Programs which provide Blended Finance (BF) for climate-related activities. These Programs are:

• Canada-IFC Renewable Energy for Africa Program: A partnership between the Government of Canada and IFC to accelerate and scale up private sector investments in renewable energy projects in Sub-Saharan Africa as a means to improve access to affordable and sustainable energy services that play an important role in reducing poverty, reducing gender inequality, and tackling climate change.
• Canada-IFC Blended Climate Finance Program: A partnership between the Government of Canada and IFC which provides concessional co-financing to support the mobilization of private capital for global climate action.
• Finland-IFC Blended Finance for Climate Program: A partnership between the Government of Finland and IFC to respond to the threat of climate change and the necessary private sector investments needed to reach the United Nations Sustainable Development Goals.
• UK-IFC Market Accelerator for Green Construction Program: A partnership between the UK Government and IFC to combat climate change in developing countries by crowding in public and private sector financing for certified green buildings. The funds are used to catalyze construction markets by incentivizing the development of green buildings through certification with IFC’s Excellence in Design for Greater Efficiencies (IFC’s EDGE) and other leading certification systems, as well as for advisory services to support capacity building, market enabling, and research.