Supporting low carbon investments through COVID-19 recovery targeting funding for 10 key sectors across 21 emerging markets has the potential to generate $10.2tn in investment opportunity, says the International Finance Corporation.
IFC stated this in a recent report, adding that it can also create 213m jobs and reduce greenhouse gas emissions by four billion tons by 2030.
The report, ‘Ctrl-Alt-Delete: A Green Reboot for Emerging Markets,’ published on Wednesday, analysed the economic and climate benefits of a green recovery that focuses on decarbonising existing and future energy infrastructure, building climate-smart cities, and helping speed the transition of key industries to greener production.
The report also drew on lessons learned from IFC’s investments and mobilisation of private capital for climate business.
“As the largest development finance institution supporting the private sector in emerging markets, IFC has experience creating and growing markets in key areas such as clean energy, sustainable cities, climate-smart agriculture, energy efficiency, green buildings, and green finance.
“Thirty per cent of IFC’s total committed and mobilised investments were in climate business in FY20, representing $6.8bn. The World Bank Group has adopted a target for 35 per cent of its financing to have climate co-benefits, on average, over the next five years. IFC catalyses markets for climate business through advisory services to businesses, financial institutions, and governments.
“IFC proactively works to create a global market for green investments to increase climate lending through capital markets and local financial intermediaries,” IFC stated.