Creating Markets for Climate Business: Mobilizing Private Sector Solutions
The International Finance Corporation (IFC), a global leader in green financing, took on the urgent issue of climate change at a forum it hosted Wednesday at the Spring Meetings in Washington DC. Panelists from both the public and private sector, financial institutions and philanthropic organizations discussed solutions to mobilizing capital for green projects in emerging markets.
In his opening remarks, IFC CEO Philippe Le Houérou noted that IFC pioneered the use of green bonds as a financing mechanism in 2007 and today the market is now at $250 billion, clear evidence of the bonds’ popularity among multilateral development banks, governments, and corporates.
Weighing in on climate-smart solutions, panelists noted that IFC’s work with governments in areas such as blended finance helps derisk green investments, thereby crowding in otherwise averse private capital. Green bonds also provide an opportunity for investors to support complicated projects such as infrastructure. The overall climate-smart business is now already more than $1 trillion.
In addition to the 189 national commitments as part of the Paris Agreement, support by local governments and providing incentives for them to comply with national climate policy is necessary for enabling on-the-ground action and scale up of climate investing.
Sri Mulyani Indrawati's participation is part of the Voyage to Indonesia, a series of activities leading up to the 2018 Annual Meetings of the International Monetary Fund and the World Bank Group to be held in Bali on October 12-14, 2018.