A report by the International Finance Corporation (IFC) says investment in ten sectors through post-COVID recovery efforts can help to support deliver economic recovery, create jobs, and help achieve the goal of limiting global temperature rise to below 2 degrees Celsius.
According to the report, by 2030, greenhouse gas emissions can be reduced by 4.00 billion tons, 213 million jobs created.
But, this will only be possible by supporting low carbon investments through COVID-19 recovery targeting funding for ten key sectors across 21 emerging markets that has the potential to generate $10.2 trillion in investment opportunity. The report, Ctrl-Alt-Delete: A Green Reboot for Emerging Markets, analyses the economic and climate benefits of a green recovery that focuses on de-carbonising existing and future energy infrastructure, building climate-smart cities, and helping speed the transition of key industries to greener production.
It finds that rebuilding emerging and developing economies today to be greener tomorrow can not only drive economic recovery from COVID-19 but also help diminish the disproportionate impact of climate change on the world’s poorest and most vulnerable people.
The report draws on lessons learned from IFC’s own investments and mobilization 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 percent of IFC’s total committed and mobilised investments were in climate business in FY20, representing $6.8 billion. The World Bank Group has adopted a target for 35% 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. The report is available at: http://wrld.bg/cLTA30rnSEF.
IFC is however, a member of the World Bank Group. It is the largest global development institution focused on the private sector in emerging markets.
It is working in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2020, IFC invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.