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  • Nigeria, IFC seal deal to fast-track private investment in infrastructure

    Nigeria, IFC seal deal to fast-track private investment in infrastructure

    The Federal Government has taken steps to close Nigeria’s wide infrastructure gap by signing a cooperation agreement with the International Finance Corporation (IFC), a member of the World Bank Group.

    The deal is aimed at attracting private investment and speeding up the delivery of major infrastructure projects across the country.

    The agreement, signed in Abuja on Tuesday through the Federal Ministry of Budget and Economic Planning, is designed to help Nigeria prepare projects in a way that makes them attractive and clear for private investors, especially in key sectors such as transport, energy, water, healthcare, and digital services.

    Speaking at the signing ceremony, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the government recognises that public funds alone cannot meet the country’s huge infrastructure needs. He explained that the focus now is on developing projects that are properly planned and ready for investment, so private capital can come in with confidence.

    “Our needs in rail, energy, water security, healthcare, and digital infrastructure are extensive. This agreement aims to ensure that we prepare projects adequately so investors can have confidence and clarity on where to allocate capital,” Bagudu said.

    He pointed to Nigeria’s early experience in the mobile phone industry as proof of the country’s ability to absorb large-scale investments. 

    According to him, when mobile services were first introduced, investors struggled to imagine a market of 500,000 subscribers, but today Nigeria’s digital economy serves more than 100 million users.

    Bagudu added that the cooperation deal supports President Bola Ahmed Tinubu’s reform drive, which he said has involved tough policy choices to stabilise the economy, make government policies more predictable, and encourage the private sector to invest.

    He also noted that Nigeria’s long-term development plan, known as Agenda 2050, and the country’s constitution both recognise the private sector as a key driver of growth, with government providing the right policies and support.

    The IFC’s, Vice President for Africa, Mr Ethiopis Tafara, described the agreement as the result of a year of close work between both sides and a shared vision for Nigeria’s future.

    “This is not just about signing a document. It is about establishing the groundwork for projects that generate employment, attract investment, and improve the daily lives of Nigerians,” Tafara said.

    He explained that the partnership would help improve how government budgets and projects are prepared by making it easier to identify, design, and deliver projects that are ready for investors in sectors such as transport, energy, digital infrastructure, and water.

    Tafara added that the World Bank Group would also support the effort with financing and guarantee tools that can help both the federal and state governments reduce risks and attract more private investors.

    “Nigeria’s infrastructure gap cannot be closed by public budgets alone. Public-private partnerships are vital. IFC is ready to assist the government in developing a strong pipeline of projects across key sectors,” he said.

    Also speaking at the event, the IFC Regional Director for Central Africa and Anglophone West Africa, Ms Dahlia Khalifa, said the agreement represents an important moment for Nigeria’s development journey.

    She said the country’s ongoing reforms and large, youthful population present huge opportunities, but these can only be fully realised with strong infrastructure, well-prepared projects, and effective cooperation between government and private investors.

    “That is what tonight is about—creating the framework for partnerships to thrive and deliver shared prosperity for all Nigerians,” Khalifa said.

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    She disclosed that IFC has been active in Nigeria for more than 60 years and has mobilised about $20 billion in investments over the past five years in areas such as energy, digital infrastructure, agriculture, manufacturing, and financial services, including trade finance.

    Khalifa also revealed that IFC’s staff strength in Nigeria has grown four times over the last two years, showing the organisation’s increasing focus on the country.

    She praised the Federal Ministry of Budget and Economic Planning for its role in coordinating national economic priorities and improving how major projects are developed.

    According to her, the cooperation agreement will help in identifying and delivering major projects in transportation, energy, and support for small and medium-sized businesses.

    “This is the kind of collaboration that turns ambition into achievement. Together, we will build projects that connect markets, power industries, and unlock the full potential of the Nigerian people,” she said.

    The agreement signals the Federal Government’s intention to work more closely with development finance institutions and the private sector to mobilise investment, create jobs, and promote sustainable growth across Nigeria.

  • Stock Exchange, IFC move to strengthen Nigeria’s sustainable finance

    Stock Exchange, IFC move to strengthen Nigeria’s sustainable finance

    • New partnership targets $6.2tr special bond market

    The Nigerian Exchange (NGX) and International Finance Corporation (IFC) have renewed commitment to working together to expand issuance of labeled bonds in the Nigerian market in a move aimed at deepening access to sustainable finance.

    Labelled bonds, including green, social, blue, and sustainability-linked instruments, are increasingly used globally to channel private capital into climate-resilient infrastructure, clean energy, and inclusive development.

    While cumulative global issuance surpassed $6.2 trillion by end-2024, uptake in Nigeria remains limited, largely due to gaps in technical structuring, certification, and disclosure frameworks.

    Speaking at a technical capacity-building workshop co-hosted by NGX and IFC, Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, said the partnership was aimed at advancing labelled bond issuance in Nigeria, supporting the real sector and accelerating the country’s sustainable finance objectives.

    He emphasised the critical role of sustainable finance in Nigeria’s growth strategy.

    READ ALSO: States seek $500m World Bank’s facility to tackle poverty

    “Unlocking sustainable capital is central to achieving Nigeria’s vision of a $1 trillion economy, shared prosperity, and long-term resilience,” Chiemeka said.

    He noted that the workshop built on NGX’s ongoing initiatives, including its sustainability disclosure guidelines, the impact board, and pioneering green bond listings.

    Principal Country Officer, International Finance Corporation (IFC), Christian Mulamula, highlighted IFC’s commitment to deepening market infrastructure and sustainability-linked investments across Africa.

    “We share an ambition for Nigeria to become a model for green and sustainable finance on the continent,” Mulamula said.

    Head, Trading and Products, Nigerian Exchange (NGX), Abimbola Babalola, said the workshop provided guidance on the issuance process and highlighted the advantages of listing bonds through NGX.

    “Bond listings on NGX offer issuers access to a diversified investor base and enhance market transparency, key for sustainable capital mobilisation,” Babalola said.

    According to him, as Nigeria pursues climate-resilient, inclusive growth, deepening the sustainable bond market is critical to unlocking the scale of capital required for its long-term ambitions.

    Special Adviser and Coordinator of Sovereign Green Bonds, Federal Ministry of Environment, Olaitan Fajuyitan, said Nigeria’s largest green bond, N50 billion sovereign green bond, was aimed at financing renewable energy, afforestation, clean transport, and sustainable agriculture.

    “This issuance underscores Nigeria’s commitment to scaling private finance in line with national development goals,” Fajuyitan said.

    Representing the Federal Ministry of Marine and Blue Economy, Husaini Shettima described the workshop as timely for advancing sustainable marine finance.

    “The next frontier is developing a robust blue bond framework that aligns with national priorities and global standards,” Shettima said.

    The workshop, themed “Unlocking Sustainable Capital for the Real Sector: A Deep Dive into the Labelled Bonds Issuance Process”, brought together issuers, market operators, institutional investors, regulators, and policymakers for practical discussions on opportunities and challenges within the sustainable bond ecosystem.

  • IFC unveils platform to boost MSMEs

    IFC unveils platform to boost MSMEs

    International Finance Corporation (IFC), a member of the World Bank Group, has  launched a new initiative to help financial service providers deliver funds to small businesses in emerging markets, especially those owned by women and those focused on agriculture and climate.

    The MSME Finance Platform (the Platform) will include a financing package of up to $4 billion from IFC’s own account to banks, non-bank financial institutions, microfinance institutions, and innovative digital lenders that focus on micro, small, and medium enterprises (MSMEs). It will be available to both new and existing IFC clients.

    The Platform will also utilize various forms of credit enhancement to mobilize private capital, including an innovative Catalytic First Loss Guarantee, which together aim to crowd in an additional $4 billion in financing from eligible financial service providers to expand lending to these businesses.

    “Micro, small, and medium enterprises(MSME) form the backbone of most developing economies, yet they face significant financial barriers that hinder their potential,” explained  Managing Director of IFC,Makhtar Diop. “Our new financing platform addresses these challenges head-on, empowering financial service providers to extend critical support to these businesses, particularly those that are women-led or environmentally focused.”

    MSMEs make up over 90 percent of all firms and account, on average, for 60-70 per cent  of total employment and 50 per cent  of gross domestic product (GDP) worldwide. Still, according to the SME Finance Forum, there is currently a roughly $5.7 trillion financing gap for MSMEs.

    The Platform will be supported by the International Development Association’s Private Sector Window (IDA PSW) to help de-risk the credit and foreign currency exposures in projects in low-income countries. Up to $100 million will come from the IDA PSW Blended Finance Facility (BFF).

    Read Also: IFC invests $1.25b in Indorama Nigeria for fertilizer production

    In emerging markets, MSMEs and the informal sector are essential to economic growth, job creation, and poverty alleviation. Recent crises have weakened financial service providers financially, constraining their ability to meet increasingly stringent lending requirements. As a result, businesses are seeing a credit contraction in emerging markets and developing economies due to tighter credit conditions, rising interest rates, and a limited appetite for risk.

    As the largest development finance institution supporting the private sector in emerging markets, IFC is well positioned to help financial service providers offer support.

    IFC will leverage its risk capital to extend first loss protection to eligible financial service providers, which often have ample local currency liquidity but have limited exposure to MSMEs due to the segment’s perceived high risk.

    Through this mobilization approach, the MSME Platform aims to create a financing solution through capital optimization structures and potentially redirect significant amounts of local currency financing to businesses.

    In addition, resources from the Global SME Finance Facility (GSMEF) and the Women Entrepreneurs Opportunity Facility (WEOF) will be allocated to support and incentivize lending to businesses in the agriculture sector and women-owned MSMEs.

  • IFC, FEI Fund partner to boost access to energy

    IFC, FEI Fund partner to boost access to energy

    To boost access to clean and reliable energy across Africa, IFC has signed a financing package for the Facility for Energy Inclusion (FEI), a pan-African fund that supports small-scale decentralised renewable energy (DRE) projects, bringing power to Africa’s commercial and industrial sectors and supporting economic activity.

    IFC’s financing will help fund the addition of about 115megawatts (Mw) of generation capacity in about 15 African countries, including the Democratic Republic of the Congo, Ghana, and Kenya.

    FEI provides debt financing for small-scale renewable energy generation and storage projects to power commercial and industrial companies, telecom infrastructure as well as mini grids.

    The $80 million financing package comprises a loan of $30 million from IFC; a loan of $20 million mobilized from the Managed Co-Lending Portfolio Program (MCPP), which will enable longer-term financing that is not readily available in the market; and up to $30 million in blended finance.

    The blended finance package includes $15 million from the International Development Association’s Private Sector Window Blended Finance Facility and $15 million from the Finland – IFC Blended Finance for Climate Program.

    “This is a major milestone for FEI which is now recognized by key market players as a lead lender in the DRE market in Africa with $220 million commitments across 23 countries to date,” said Orli Arav, Head of Debt Funds at Cygnum Capital Asset Management. “The partnership with IFC including a $20 million tranche from institutional investors represents a vote of confidence to Cygnum Capital as a leading fund manager.”

    “Our partnership with FEI will help support the development of Africa’s DRE market and attract local and international private investment, strengthening the sector’s capacity to reach commercial viability and scale,” said Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure and Natural Resources in Africa. “With approximately 600 million people across sub–Saharan Africa without access to electricity, the DRE market offers a viable solution to expanding access to electricity across the continent by offering affordable and climate friendly energy solutions.”

    In many countries across Africa, utilities are unable to provide consistently reliable or affordable electricity, resulting in power outages and a reliance on fossil fuel backup generators. This project will help displace these carbon-intensive power sources and improve access, affordability, and the quality of electricity supply, while also supporting the growth of the nascent DRE market.

    IFC’s investment in the Facility for Energy Inclusion fund is aligned with the World Bank Group’s strategy to accelerate the pace of electrification in Africa to achieve universal access by 2030.

    FEI was established in 2019 and is managed by Cygnum Capital Asset Management, an asset manager with an extensive track record of green investments in Africa. Earlier this year, IFC announced an investment in Cygnum Capital’s AfricaGoGreen Fund to finance climate-friendly projects in Africa.

    Cygnum Capital is an investment bank and asset manager, operating across frontier and emerging markets. Cygnum Capital Asset Management manages five pioneering funds: four debt funds including African Local Currency Bond Fund (ALCBF), a ground-breaking investment vehicle established to support local currency capital markets; Off-Grid Energy Access Fund (OGE) which supports companies in off grid energy such as SHS and small- medium mini-grids; and FEI which support companies that provide a range of renewable energy solutions such as medium – large mini- grids, commercial and industrial (C&I) and IPP with a maximum capacity of 25 Mw. Others are AfricaGoGreen (AGG) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency; and a VC private equity fund; and E3 Low Carbon Economy Fund for Africa (E3 LCEF) which invests in climate-smart services, digital connectivity & Applications, low-carbon productivity enablers.

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    Cygnum Capital Asset Management has over $750 million of assets under management with investments in more than 27 African countries.

    FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, C&I, and captive power projects. FEI was set up by the African Development Bank as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund, and a loan commitment from the Austrian Development Bank. The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.

    Additionally, FEI’s Project Preparation Facility (PPF), funded by the Global Environment Facility, through the African Development Bank provides returnable grant funding for last-mile processes that are crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI is seeking to lend to.

  • Firm, IFC seal $100m affordable power deal

    Firm, IFC seal $100m affordable power deal

    Scatec has signed a $100 million loan agreement with the World Bank’s International Finance Corporation (IFC).

      The loan agreement is part of a larger partnership to provide a simpler, more affordable, and cleaner offering of power to African utilities, which also includes a $ 65 million guarantee facility to support the payment obligations of release’s customers.

    The objective is to replace costly diesel and expand electrification in the region; release operates on a unique leasing model, providing flexible short- or long-term contracts for the mining and utilities market, primarily in Africa, based on modular, movable and redeployable equipment.

    IFC is the largest global development institution renowned for its instrumental role in supporting private sector development, and the loan from IFC will provide funding on a portfolio level for Release’s further development and installation of assets to be leased to African utilities.

    The purpose of the guarantee facility is to guarantee payments to Release from the counterparties leasing the solar and battery equipment. The structure provides risk mitigation for Release while allowing African utilities and governments to secure affordable renewable energy from solar and batteries, without the financial commitment required for the conventional infrastructure projects. The partnership with IFC will thereby represent a significant catalyst for further growth of the Release platform.

    The first project where the combined project loan and guarantee structure will be applied is for a 35 MW solar and 20 MWh battery project in N’djamena in Chad, where a lease contract has already been signed. Release’s existing and operating projects in Northern Cameroon of 36 MW of solar PV and 20 MWh of batteries will also form part of the portfolio financing and discussions on extending the capacity of these projects are currently ongoing with the utility.

    Read Also: IFC okays $1b cash for renewable energy projects

    “This highly innovative solution enables countries to deploy solar power projects quickly, allowing African countries to swiftly ramp up to meet rising energy demand with clean power solutions,” said IFC’s Regional Industry Director for Infrastructure and Natural Resources, Africa,’Sarvesh Suri.

    “Our ambition is to deploy this replicable solution, in partnership with Release in multiple countries across sub-Saharan Africa within a short timeframe, allowing more people to benefit from the economic growth that comes with reliable, affordable access to electricity.”

    “I am delighted that, through this partnership between Scatec and IFC, Chad has been chosen as the first country to benefit from a solar power plant to support the government’s efforts to meet the energy access needs of our populations,” said Alixe Naïmbaye, Minister of Hydrocarbons and Energy of Chad.  “In addition, the liquidity guarantee facility granted by the World Bank to Société Nationale d’Electricité underlines the strong commitment of the World Bank Group to facilitating partnerships with private investors.”

    “We are excited to secure the partnership with IFC for our innovative solar leasing solution Release. IFC’s support is testimony to the solid business model of Release, the general demand and need for such an innovative solution in the market and our proven track record in developing renewable energy solutions,” says Scatec Chief Executive, Terje Pilskog, who is also Chair of Release.

    “The innovative approach of Release follows a dynamic rolling delivery model of build, connect, and deliver. Looking ahead, Release is actively exploring additional opportunities in Cameroon, Liberia, and the rest of West- and Central-Africa, reinforcing its commitment to advancing renewable energy solutions across the African continent and other select markets,” says Release Chief Executive, Hans Olav Kvalvaag.

    This significant step comes after Release recently raised $ 102 million in funding from Climate Investor One, a fund managed by Climate Fund Managers, a leading climate-centric blended finance fund manager backed by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.

  • IFC, StanChart boost trade with $1b

    The International Financial Corporation (IFC) and Standard Chartered Bank (StanChart), a member of the World Bank Group, have established a $1 billion facility to boost trade finance in emerging markets, helping to sustain trade flows in developing countries and narrow the gap in global trade finance.

    The initiative will support trade flows in emerging markets by allowing both institutions to share the risk of a portfolio of corporate and small and medium-sized enterprises (SME) trade flows equally.

    The arrangement is expected to enable over $4 billion in trade finance across markets in Asia, the Middle East, and Africa over three years.

    By promoting trade, the facility will help narrow the $1.5 trillion global trade finance gap at a time some banks are exiting the trade space.

    The deal builds on Standard Chartered’s longstanding presence in emerging markets and leading trade finance capabilities, and IFC’s global reach and market coverage to increase the availability of trade finance in some of the most challenging markets, including some of the world’s poorest countries. This will bring trade finance to local and regional companies, some of which are credit-constrained and rely on bank trade facilities to manage cash flows and purchase raw inputs.

    “Trade is a key driver of economic growth in emerging markets,” said Paulo de Bolle, Senior Director of IFC’s Financial Institutions Group.

    “This facility is a unique partnership that can help counter de-risking trends in developing countries and support real-sector demand for trade finance,” he added.

  • IFC commends TAMPAN on Murphy Afolabi

    The Ibadan Film Circle (IFC) has acknowledged the role of the Theatre Arts and Motion Pictures Producers Association of Nigeria (TAMPAN) in the recent case of Mr Murphy Afolabi’s unethical practice of charging fees at the auditions for his forthcoming film.

    “We note with satisfaction the speed and professional thoroughness with which TAMPAN rose to the occasion in calling one of their members to order,” said the chair of IFC, Oluwafiropo Ewenla.

    “We are particularly delighted that TAMPAN saw IFC’s intervention as necessary and did everything possible to verify the facts before coming to a decision. We have the  TAMPAN National Executive Council led by Mr Bolaji Amusan specifically to thank for this. What TAMPAN has done  is the best option we have to keep sanity, ethics and best practice standard in the industry that we all love and want to grow.

    “We would also like to use this opportunity to commend Mr Murphy Afolabi for the humility and maturity he displayed in resolving the matter. He went before a special TAMPAN investigative panel, and later, he  duly complied with TAMPAN’s directive to issue a signed Apology Letter in which he accepted his wrongdoing with a solemn promise that this practice will not manifest from him again.

    “We also use this Press Release to challenge or wake up all other relevant art and cultural associations to borrow a leaf from TAMPAN and realize that they not only  need to be vigilant and proactive in ensuring that their  members maintain  basic ethical standard, they must also be swift and decisive in reigning in errant members. Finally, we enjoin all notable figures in film; theatre and related media practice as well as members of the public to support a comprehensive advocacy campaign against exploitative acts in the industry which IFC will launch soon.”

  • IFC, Actis, others to manage over $350b assets

    ABOUT  60 investors including  International Finance Corporation (IFC), Actis AXA Investment Managers  have agreed to adopt the Operating Principles for Impact Management, a market standard for impact investing, IFC Chief Executive Officer,  Philippe Le Houérou, said at the weekend.

    IFC in a statement circulated in Washington DC at the ongoing World Bank/International Monetary Fund (IMF) Spring Meetings, Le Houérou  said under the Impact Operating Principles, operators seek to generate positive impact for society alongside financial returns in a disciplined and transparent way, saying the principles bring greater transparency, credibility and discipline to the impact investing market.

    He said the organisations adopting the principles collectively hold over $350 billion in assets invested for impact, which they commit to manage in accordance with the Principles, adding that future investments for impact will also adhere to the principles.

    He said the principles provide a clear common market standard for what constitutes an impact investment, addressing concerns about “impact-washing,” stating that the IFC led the development of the Principles, in collaboration with leading asset managers, asset owners, asset allocators, development banks, and financial institutions, including a three-month public stakeholder consultation.

    “We believe there is now potential to bring impact investing into the mainstream,” Le Houérou said, adding,  “our ambitions are very high – we want much more money managed for impact because there’s no time to lose to deliver on the billions to trillions agenda.”

    In a new report, titled:  Creating Impact: The Promise of Impact Investing, the IFC estimates that investor appetite for impact investment could be as much as $26 trillion,  including $5 trillion in private markets involving private equity, non-sovereign debt, and venture capital, and as much as $21 trillion in publicly traded stocks and bonds.

    He said to fulfill this potential, impact investing needs to offer investors a transparent basis on which they can invest their money to achieve positive measurable outcomes for society in addition to financial returns, saying the Principles launched “facilitate this process by creating clarity and consistency regarding what constitutes investments managed for impact to bolster confidence in the market.”

    IFC, an affiliate of the  World Bank Group,  is one of the oldest and the largest impact investors, demonstrating that it is possible to achieve significant development impact while generating solid financial returns.

    On average, IFC’s realised equity returns from 1988 to 2016 compared well to returns from the MSCI Emerging Market Index.

    The Principles draw on IFC’s experience in investing in emerging markets to achieve strong development impact and financial returns. They reflect best practices across a range of public and private institutions. They integrate impact considerations into all phases of the investment lifecycle: strategy, origination and structuring, portfolio management, exit, and independent verification. Critically, they call for annual disclosure as to how signatories implement the Principles, and independent verification of impact management systems, which will provide credibility to the implementation of the Principles.

     

  • IFC: Nigeria’s private capital to GDP rate low

    Nigeria has low private capital to Gross Domestic Product (GDP) rate, which remains a major consideration that foreign investors consider in making their investments in countries, Country Managing Director at International Finance corporation (IFC),  Mrs. Eme Essien, has said.

    Speaking yesterday at the FirstBank 125 years anniversary in Lagos, she said the level of risk and regulatory environment are deterring foreign capital inflows to the economy.

    According to her, fixing these challenges will attract more private capital to the economy.

    She said the level of financial inclusion in Nigeria is also low, adding that more people should have access to banking services in the interest of the economy.

    Also speaking, Finance Minister, Mrs. Zainab Ahmed, said there is need for the country to save on constant basis and promote capital expenditure to boost infrastructure status in the country.

    According to her, the government is not only cutting cost, but diversifying Nigeria’s revenue bases and investing in key infrastructure like transportation.

    “We need to invest more in the transport sector. We have promoted human capital development because of the interest we have in our people. We need to constantly develop people,” she said.

    Minister for Budget & Planning, Ghana, George Ryan-Baffour, said Western countries are never interested in lending to Africa at low interest rates. He said the advanced countries only lend to Africa to provide basic amenities like water, but hardly lend to them to build factories.

    “So, it is left for Africa to generate the capital to build your economies and not depend on advanced countries. There is no body outside the content that will lend us capital to invest in factories,” he said.

    Managing Director/CEO FirstBank, Adesola Adeduntan, said the bank has survived in the last 125 years because of innovation, and transformation, which he said, is embedded in the banks Deoxyribonucleic Acid (DNA).

    He said that financial inclusion is at the heart of FirstBank, with 750 branches across the country.

    Adeduntan, had earlier said that: “As a long-standing institution, which even predates Nigeria as a unified entity, FirstBank is entrenched in the nation’s development; woven into the very fabric of society, with our involvement in every stage of national growth and development.

    At the amalgamation, independence and through the seasons ever after, we have been here marching hand-in-hand with you and our dear nation.

     

     

  • UK, IFC partner in $2b deal to boost green construction

    Globally, more green construction would emerge, as the United Kingdom and the International Finance Corporation (IFC) have concluded a deal to raise $2billion to help in transforming construction markets.

    The said money, it was learnt, would be drawn from both public and private sector financing for certified green buildings in emerging markets.

    The new deal is coming on the heels of several warnings against increasing global warming due to continuous human activities, especially in the construction sector.

    Indeed, the UK-IFC Market Accelerator for Green Construction Programme will be the first UK-IFC partnership in blended concessional finance for climate change mitigation.

    The U.K. government’s contribution of £105 million will include £80 million for investments and £25 million for advisory services. The funds will be used to incentivise the development of green buildings through certification with IFC’s EDGE and other leading certification systems.

    Globally, buildings generate 19 percent of energy-related greenhouse gas emissions and consume 40 percent of electricity. Every year, an additional 5.5 billion square meters of floor space is constructed, mainly in emerging markets where green construction makes up only a small fraction of new buildings. The global built environment is expected to double by 2050, and green construction can secure lower emissions for decades.