IDFC Green Finance Mapping 2023
Since 2011, the International Development Finance Club (IDFC) has conducted a periodic mapping of member institutions’ green finance contributions.
In 2022, IDFC members reported a record high of USD 288 billion in total green finance commitments, a 29% increase from 2021. Cumulatively, green finance commitments by IDFC members surpassed USD 1.5 trillion since the Paris Agreement was signed in 2015. This is the result of IDFC members’ unique ability to deliver green finance at scale. Mitigation finance reached the highest level to date (USD 244.7 billion), increasing by 31% over 2021. Adaptation finance also reached a record high, increasing 52% to USD 31.6 billion. Overall, 14 members increased their green commitments in 2022, 4 of which did not report in previous years.
Key findings
IDFC members reported total green finance commitments of USD 288 billion. This represents a 29% increase from 2021, evidence that green finance continues to be channelled at scale in the post-COVID period.
In 2022, green finance represented approximately 24% of total new commitments reported by IDFC members. Since 2015, green finance commitments have consistently represented more than one-fifth of total IDFC investments.
Climate finance – consisting of all activities related to the mitigation of greenhouse gas (GHG) emissions and adaptation to climate change – accounted for 98% of total green finance (or USD 281.9 billion), on par with the share observed in 2021.
- Finance for green energy and the mitigation of GHGs was the largest category, representing 87% of climate finance.
Adaptation finance increased 52% to a record high of USD 31.6 billion, primarily driven by a doubling of commitments for water preservation projects. This reflects a broader trend amongst public DFIs emphasising the importance of placing equal weight on adaptation in investment portfolios.
Finance to projects containing elements of both mitigation and adaptation increased 7% to USD 5.6 billion but remained approximately the same share of total climate finance as in 2021 (2%).
Finance for biodiversity projects remained stable in 2022, totalling USD 18.2 billion. This includes, for example, finance for water supply, wastewater treatment, agriculture and natural resources, and biodiversity conservation, among others.
Additionally, IDFC members reported USD 2 billion of finance for other environmental objectives, which includes, inter alia, projects tackling pollution.
