Canada-IFC Blended Climate Finance Program for private investments in climate solutions
The Canada-IFC Blended Climate Finance Program involves a contribution of 250 million Canadian dollars from the government of Canada. IFC will use these funds to mitigate risks deterring private investment in key areas such as resilient infrastructure, climate-smart agriculture, and renewable energy.
IFC, a member of the World Bank Group, and the government of Canada have formed a partnership to use a limited amount of public funds to unlock much larger amounts of private funds for investment in emerging markets worldwide.
The Canada-IFC Blended Climate Finance Program involves a contribution of 250 million Canadian dollars from the government of Canada. IFC will use these funds to mitigate risks deterring private investment in key areas such as resilient infrastructure, climate-smart agriculture, and renewable energy. This financing, when blended with IFC’s own investments, will mobilize private capital to help overcome the challenge of climate change.
“Climate change is an urgent and global challenge and one that disproportionally affects women and girls. Truly effective climate action needs to reflect their needs and views. Canada is pleased to be continuing this partnership with IFC to promote gender-responsive climate action” said Marie-Claude Bibeau, Canada’s Minister of International Cooperation and La Francophonie. The partnership reflects Canada’s commitment under the 2015 Paris Agreement to support developing countries in their transition to sustainable and resilient low-carbon economies.
In 2011, Canada became the first bilateral partner to support IFC’s blended climate finance investments and advisory services, contributing 276 million Canadian dollars. This support helped drive more than $1.4 billion in IFC and private sector financing for solar, wind, and hydro power projects in emerging markets—avoiding the equivalent of about 4.9 million metric tons of carbon dioxide a year. The expanded partnership also complements the Canada-IFC Renewable Energy Program for Africa launched in January.
“Using blended finance in a smart and strategic way can mobilize significant private capital to tackle climate change in countries where technologies or business models are untested,” said IFC CEO Philippe Le Houérou. “Our partnership with the government of Canada is leading the way in this area.”IFC plays a key role in advancing private sector climate solutions. Since 2005, IFC has invested more than $18 billion in long-term financing in climate-smart industries ranging from renewable power generation to energy efficiency, climate-smart agribusiness, green finance, and green buildings.
Source: devdiscourse
