IFC and institutional investors take $3B climate finance initiative

IFC, in collaborating with Allianz Global Investors and the Hong Kong Monetary Authority, two institutional investors, announced plans to develop a new $3 billion global platform for climate - smart investment aligned with the Paris Agreement on Wednesday.

The new programme, MCPP One Planet, combines institutional investor contributions with IFC's own funds to scale up climate - responsible financing for private companies in emerging markets, said a press release.

MCPP One Planet will create the world's first cross - sectorial portfolio of emerging market loans aligned with the Paris Agreement.

The facility enables institutional investors to directly provide capital for sustainable lending in emerging markets, allowing investors to scale up their exposure to this asset class and increase the share of their portfolios aimed at climate - resilient development.

Announcing MCPP One Planet at COP26 today, IFC Managing Director Makhtar Diop said, "Expanding partnerships with some of the world's largest investors is fundamental to scaling up financial flows to emerging markets for climate - smart solutions consistent with the goals of the Paris Agreement. MCPP One Planet will create a global model for the mobilisation of institutional investor financing in support of the climate agenda for the most vulnerable communities on the frontlines of climate change in emerging and developing economies."

Oliver Bäte, Chief Executive Officer of Allianz SE, said, "Our strong partnership with IFC and engaged investors enables us to shape programmes like MCPP One Planet and contribute to climate - smart economic growth in markets of scale. Huge sums need to be invested to bring emerging markets along a Paris-aligned trajectory, and we are keen to help structure these public-private collaborations and mobilise the required capital."

"In 2016, together with Allianz and IFC, we set up a blueprint to mobilise private capital via the MCPP on infrastructure. Today, we are proud to extend our successful partnership to the MCPP One Planet. It is a great example of effectively scaling private capital for sustainable investing as part of our Development Finance business," said Deborah Zurkow, global head of Investments, Allianz Global Investors.

Since launch in 2013, MCPP has raised over $10 billion from 11 investors and provided financing to more than 200 firms across 55 developing countries.