In 2020, the International Finance Corporation (IFC, the World Bank’s private sector arm) published its “Approach to Greening Equity in Financial Institutions” (Green Equity Approach or GEA). The GEA committed the IFC to end equity investments in financial institutions that do not have a plan to phase out coal-related investments by 2030.
This initiative to “green” equity investments through the GEA was a step in the right direction in helping IFC’s equity financial intermediary clients to stop financing fossil fuels and boost sustainable investments. But while the GEA represents a welcome, if narrow, opportunity to phase out coal financing by 2030, much is still left to be done to align IFC’s equity investment portfolio with the Paris Agreement’s climate goals.
The “10 Essentials for a ‘Truly Green’ Green Equity Approach” briefing outlines ten civil society recommendations to ensure equity investments under the IFC are shifted away from fossil fuel financing.
This briefing was co-published by Center for International Environmental Law (CIEL), Recourse, Heinrich Böll Stiftung Washington, DC, TrendAsia, Inclusive Development International, Oil Change International, Friends of the Earth US, BankTrack, Center for Financial Accountability, Gender Action, and Bretton Woods Project.
Download the briefing’s summary.
Published on June 1st, 2022