Washington, D.C., January 25, 2013—IFC,
a member of the World Bank Group, the governments of Canada and the United
Kingdom, and the sovereign wealth fund of Azerbaijan have invested about
$280 million in the IFC Catalyst Fund, which will invest in funds that
provide growth capital to companies developing innovative ways to address
climate change, and invest directly in those companies.
IFC is contributing $75 million to the fund. The fund will provide investors
with exposure to a diversified portfolio of private equity funds managed
by established and emerging fund managers. It will also offer investors
the ability to invest at scale in fast-growing resource-efficiency sectors
across emerging markets.
“Addressing climate change is a strategic priority for IFC, and private
equity is well suited to jumpstart climate-friendly investment in emerging
markets,” said Jin-Yong Cai, IFC EVP and CEO. “The Catalyst Fund represents
a concrete step forward in mobilizing commercial finance for climate. It
will encourage additional private sector investment into climate projects
in emerging markets.”
IFC incorporates climate change into virtually every aspect of its business.
In fiscal year 2012 alone, IFC invested more than $1.6 billion in climate-related
Private-equity and venture-capital funds are uniquely suited to financing
climate-related investments because they tend to back innovative projects,
support early-stage companies, and help such companies improve their business
and technical capacity. These funds are expected to provide only a small
part of the estimated $4.6 trillion in climate investment needed worldwide,
but they can fill a key niche in emerging markets.
IFC has supported emerging-market private equity funds for over two decades.
IFC has a portfolio of $3 billion in more than 180 private equity funds—including
about $340 million in 17 climate-focused private equity funds. All the
funds in which IFC invests adhere to IFC’s environmental and social standards,
which help expand the use of best practices in corporate governance and
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.