IDFC Green Finance Mapping Report 2019
Published: December, 2019
The International Development Finance Club (IDFC) is the leading group of 26 national and regional development banks from all over the world, the majority of which are active in emerging markets. During the United Nations Climate Action Summit 2019, IDFC resolved to mobilize significant volumes of financing for meeting climate and development goals.
Robust and consistent tracking of green finance flows will be essential for IDFC members to evaluate progress in achieving their green finance ambitions. IDFC has conducted regular mapping of its member institutions’ green finance commitments since 2011, to increase transparency and accessibility as outlined by the 2017 One Planet Summit joint resolution with Multilateral Development Banks (MDBs). To inform this exercise, IDFC members complete a survey template. Climate Policy Initiative supports this effort by assisting IDFC member institutions filling out the survey, and checks, aggregates, and analyzes the data.
The results of the 2019 mapping exercise are presented in a summary report concerning financial commitments made during 2018.
- IDFC members reported total green finance commitments of $134 billion in 2018. Although this represents a 39% decrease from commitments in 2017, cumulative green finance commitments by IDFC members sum to over $670 billion since 2015.
- Green finance commitments represented approximately 22% of total new commitments made by the reporting IDFC members in 2018. Green commitments have consistently been above one-fifth of total IDFC investments since 2016.
- Climate finance – consisting of all activities related to mitigation of GHG emissions and adaptation to climate change – accounted for 93% of total green finance.
- IDFC institutions based in non-OECD countries committed $80 billion, a smaller proportion (59%) of the total than in previous years. This decrease reversed an upward trend in the non-OECD share of IDFC green finance, which reached 75% ($166 billion) in 2017 and 68% ($118 billion) in 2016.
- Green finance commitments have become more regionally balanced. While the East Asia and Pacific region again received the largest share of finance at 56%, this was lower than in 2017 (72%). As in 2016 and 2017, the East Asia and Pacific region was followed by the EU (22%), Latin America and the Caribbean (9%) and South Asia (6%), as the leading destinations of finance.
To address these tracking and reporting challenges, IDFC’s Climate Facility will develop strengthened methodologies and provide capacity building and knowledge sharing services. The Facility will also support project preparation and mobilization of international co-financing for projects, to help IDFC members achieve the ambitious objective to increase climate finance to $1 trillion cumulatively by 2025.
Previous year’s reports:
- IDFC Green Finance Mapping Report 2018 (financial commitments in 2017)
- IDFC Green Finance Mapping Report 2017 (financial commitments in 2016)