The Infrastructure Development Finance Company (IDFC) confirmed its support to finance green projects
CAF and other members of the IDFC increased their contribution to green agendas, with USD 95 billion in new commitments to finance environmental projects in 2012. Sixty-two percent of the green financing in 2012 went to emerging countries.
(Caracas, December 06, 2013).- The Infrastructure Development Finance Company (IDFC), which brings together 20 of the main international, national, and sub-regional development banks in the world, published its Green Financing Mapping Report for the second consecutive year.
The report compiles all the activities that the IDFC members financed in 2012 relating to green projects and climate change. This includes operations to mitigate and adapt to climate change, especially in the areas of renewable energy and energy efficiency, as well as financing activities to promote the protection of the environment. The IDFC report was developed by the energy and climate consultant Ecofys.
In 2012, the members of the IDFC established new commitments which represented USD 95 billion in green financing, equivalent to a USD 6 billion increase from 2011 to 2012.
Most of the financing (USD 80 billion) was invested in climate change activities with a focus on sustainable development. Of this amount, USD 65 billion were for clean energy and activities for the mitigation of greenhouse gas emissions, and USD 14 billion for activities to adapt to climate change.
The report also shows that USD 59 billion, or 62 percent of the total green financing in 2012, was aimed at developing countries. This includes flows of financing by institutions with headquarters in member countries of the Organization for Economic Cooperation and Development (OECD) to countries which do not belong to the OECD, equivalent to USD 15 billion, as well as financing for USD 44 billion by institutions with headquarters in countries which are not members of the OECD.
These figures show the commitment and importance that the members of the IDFC give to the support of green and climate activities in emerging countries.
The conclusions of the report show the financial and technical capacities, in addition to the experience of the development banks that are members of the IDFC to mobilize, intermediate, deliver, and take advantage of the large and increasing quantities of green financing at an international and national level.
All of this makes the members of the IDFC "stand in a good position as vehicles to channel the climate financing of international funds, such as the soon to be operational Fondo Verde Climático (Climate Green Fund)", as shown in the IDFC's Green Financing Mapping Report.
At the same time, Ligia Castro, Director of The Environment at CAF, Development Bank of Latin America, states that "the members of the IDFC enjoy the acceptance and trust of donor and client countries, due to their strong integration with national and subnational policies, their historical involvement in complying with infrastructure and industrial development, and their field experience in an ample range of development disciplines."
CAF, Development Bank of Latin America, is a member of the IDFC, with an important role in helping reduce the critical financing gaps for projects that benefit the environment, creating technical competencies, and catalyzing investments in new economic, social, and environmental sectors.
The members of the IDFC have a successful and well know trajectory in the integration of the pillars of sustainable development in their mandates, and are key protagonists in cooperation with governments, the private sector, and civil society for the progress of a sustainable development agenda.
The IDFC's 2013 Green Financing Mapping Report is available at the IDFC's web site: www.idfc.org
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