International Finance Corporation

Non-fossil to fossil energy ratio and scaling up climate investment in all sectors

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.

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Paris alignmentReasoning
UnalignedBetween 2016-2018 for every $1 the IFC provided to fossil fuels, $1.5 went to renewables and $0.1 went to Transmission & Distribution (T&D)

Explanation

IFC has been classified as unaligned with the Paris Agreement on this metric due to its poor ratio between fossil and non-fossil energy lending.

It should be noted that climate finance as a percentage of its total portfolio has risen sharply since 2013, showing that the IFC is making major efforts in this area. 

Adaptation financing represents a small proportion of its climate finance portfolio. This may be because of its private sector focus, but the IFC has acknowledged that it can do more in this area.

Recommendation: Scale up climate investment in the energy sector to ensure fossil fuel lending is at zero across a 3-year period

 
OECD (2018) OECD DAC Recipient Perspective – Climate Finance
Oil Change International (2018) Shift the Subsidies database
Joint Report on Multilateral Development Banks Climate Finance (2019,2018,2017,2016,2015,2014,2013)
Last Update: November 2020

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