Leveraging Partnerships to Address Climate Change Monika Weber-Fahr Global Business Line Leader - Sustainability IFC Advisory Services

IFC engages on four levels – with investment and advisory services Overall Enabling Environment Sector Enabling Environment Groups of Firms Single Firm Overall Enabling Environment Partnerships to Address Climate Change

Partnerships a way of doing business: Long-term presence in emerging markets TransactionalProgrammatic Collaborative Investment Engagements Advisory Engagements Industry/Topic Initiatives Country/Sector Initiatives New Frontiers in the Enabling Environment for Emerging Market Growth

Partnerships a way of doing business: Long-term presence in emerging markets TransactionalProgrammatic Collaborative Towards Innovative Market Mechanisms Towards GHG-reducing Technologies or Management Practices Leverage Finance – Private, Concessional, Innovative Bank Group Strategy on Climate Change … the Private Sector Angle:

Partnerships a way of doing business: Long-term presence in emerging markets TransactionalProgrammatic Collaborative Investment Engagements Advisory Engagements Industry/Topic Initiatives Country/Sector Initiatives New Frontiers in the Enabling Environment for Emerging Market Growth

Transactional Partnerships: IFC’s Cleaner Production Program Cost-Share a function of the uncertainty which business initiatives that reduce resource use, emissions and waste have to overcome due to new methods, technologies and markets IFC’s ~1500 portfolio clients in industry, agriculture, and the banking sector CP Assessments at 50:50 cost- share* (across most countries) Investment in CP through a dedicated quick-draw down lending facility Leveraging partnership with portfolio clients to create best practice examples in high-impact sectors (eg Cement, Metals etc.)

More transactional partnerships in other sectors – active and in-the-making TransactionalProgrammatic Collaborative Real Sector: Cleaner Production Programs (Investment&Advisory) Financial Sector: Energy Efficiency Lending for SMEs (Investment&Advisory) Investment Funds: Climate Change Initiative (Investment)

More complex market barriers require programmatic partnerships… TransactionalProgrammatic Collaborative Investment Engagements Advisory Engagements Industry/Topic Initiatives Country/Sector Initiatives New Frontiers in the Enabling Environment for Emerging Market Growth

Market barriers prevent access to affordable modern lighting – lack of standards - quality assurance, export / import regulations, distribution channels for new combined-usage products Partnership with key Industry Players, Governments, and the World Bank Group Mobilizing industry interest, coordinated resources to address barriers, and investment (in LED manufacturers) Programmatic Partnerships: The Lighting Africa Program

Other programmatic partnerships – active and in-the-making TransactionalProgrammatic Collaborative GEF Earth Fund: A programmatic partnership to encourage private sector interest in innovative climate change solutions CTF: A programmatic partnership to encourage private sector investment in initiatives with transformative character Real Sector: GSMA Green Power (considered)

Partnerships a way of doing business: Long-term presence in emerging markets TransactionalProgrammatic Collaborative Investment Engagements Advisory Engagements Industry/Topic Initiatives Country/Sector Initiatives New Frontiers in the Enabling Environment for Emerging Market Growth

Collaborative Partnerships: Understanding Climate Change from the Private Sector’s Perspective Capital Market Actors: with S&P, Trucost, CDP, others, to understand risk exposures from climate change Institutional Investors: with European and US Pension Funds, to explore opportunities to contribute to climate change mitigation financing Climate Works: analytical and policy insights (with McKinsey) Equator Banks: Information exchange on methodology development, decision parameters, policies

Perspective Example: IFC brings private sector perspective to CIF design Location Example: IFC works with GHG relevant industries through its over 100 offices in 81 countries, right “on location” Standing Example: IFC partners through commodity round-tables to improve land-use impact of agribusiness IFC Partnerships can best address Climate Change … … when we leverage our assets Fit with Investment Business Example: FC leverages investments to promote investments in renewables and energy efficiency – with its long- term clients and other partners Fit with Advisory Business Example: A business model and M&E structure that fits with transformative intent of private sector oriented climate change programs

14 Mobilizing resources Part of IFC mobilization role 24 official donors together contributed an average of $150 pa to IFC AS in recent years New partnerships with private foundations (eg, Gates) Sharing knowledge & experience Managing multi- donor programs Partnerships evolve in line with shared priorities. Donor Partnerships – Central to IFC’s advisory business

Outlook: Leveraging Partnerships in times of Financial Crisis