• The International Finance Corporation (IFC) of World Bank has announced a collaboration with Allied Climate Partners (ACP) that will help create a pipeline of viable climate investments in Southeast Asia, Africa, the Caribbean and Central America, and India.

• ACP’s new platform is backed by philanthropic capital and designed to mobilise investment in climate-related projects in emerging economies to create significant environmental, economic, and social impact. 

• The collaboration with IFC will provide advisory and structuring support, technical assistance, and sustainability and impact-management support as needed to help bring projects to financial viability.

• The ACP platform will work to establish funds focused on the early development stages of climate-related projects.

Allied Climate Partners

• Allied Climate Partners (ACP) is a philanthropic investment organisation with a mission to accelerate the climate transition and improve livelihoods in emerging economies by increasing the flow of capital to bankable, climate-related projects and businesses. 

• ACP selects regional investment managers in emerging economies and supports them with first-loss capital, expertise, and the mandate to address a critical financing gap at the early, risk-oriented stages of the development process for climate-related projects and asset-oriented businesses. 

• Without this support, many projects and businesses struggle to attract the necessary capital to achieve their climate-related goals. By proving this model, ACP aims to induce commercially oriented public and private sector investors to invest where they likely would not otherwise.

International Finance Corporation

• Established in 1956, IFC is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilising capital in international financial markets, and providing advisory services to businesses and governments. 

• Although part of the World Bank Group, IFC is a separate legal entity with separate Articles of Agreement, share capital, financial structure, management, and staff.

• IFC is owned by 184 member countries, a group that collectively determines its policies.

• With a global presence in more than 100 countries, a network consisting of hundreds of financial institutions, and more than 2,000 client firms, IFC has been leading the way in private sector development.

• Six decades ago, a few dozen countries made a calculated bet on the transformative potential of the private sector in developing countries. They put up $100 million in capital and established IFC to reinforce the work of the World Bank in spurring growth and development. 

• IFC began with a primary emphasis on loans. Equity investment and loan syndication functions were soon added. As more countries joined IFC and demand increased, a wider array of other products was introduced. It expanded advisory services, new knowledge-based services, and a broader range of investment vehicles.

• Today, IFC is the largest global development institution focused on the private sector, having delivered nearly $250 billion in financing to businesses in emerging markets.

• In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to improve people’s lives as economies grapple with the impacts of global compounding crises. 

• Throughout its history, IFC has introduced new approaches to meet the needs of developing countries. Initially, it helped to bring leading multinational companies to developing countries — beginning in 1957, when IFC invested alongside Siemens in Brazil.

• In addition, as businesses in these countries began to thrive, IFC deployed its staff to local markets to be closer to clients. Over time, IFC helped drive growth by providing investment and advice, and by mobilizing resources from other capital providers.

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