IFC-BMWK Scale Up Climate Finance through Greening the Financial Sector Program
IFC and the German Government’s Federal Ministry for Economic Affairs and Climate Action (BMWK) have partnered to complement the existing “Scaling Up Climate Finance through the Financial Sector” Program with a blended concessional finance component. The BMWK's EUR€30 blended finance contribution is expected to enable at least US$600 million in IFC own-account and private sector mobilization by de-risking investments.
Priority Areas
To implement Nationally Determined Contributions (NDCs), Emerging Markets and Developing Economies (EMDEs) require vast amounts of funding. EMDEs are vulnerable to both the physical and economic impacts of climate change, potentially impacting the soundness of financial institutions (FIs) and the stability of the overall financial system in these countries. Increasing climate lending to support the creation of domestic markets for climate financing will enable critical private sector mobilization.
The IFC-BMWK program aims to:
- Deploy blended concessional finance towards projects that contribute to an increase in climate-focused lending activities of financial intermediaries (FIs)
- Encourage FIs to align their business strategies with climate targets while reducing climate risk
- Support the development of domestic green bond markets.
The Program is designed to increase climate lending by participating banks in Egypt, Mexico, the Philippines, and South Africa to 30 percent of their portfolios by 2030, while reducing exposure to coal.
