The International Finance Corporation has created a new platform to scale up climate financing for private companies in emerging markets, unveiling the iniative at the COP26 conference.
The $3bn platform, MCPP One Planet, will combine contributions from Allianz Global Investors and the Hong Kong Monetary Authority with the IFC’s own funds to provide emerging market loans aligned with the Paris Agreement.
The aim is to scale up both climate financing for emerging markets and investors’ exposure to this asset class, allowing investors to directly provide capital for sustainable lending in emerging markets.
MCPP One Planet is an extension of the IFC’s Managed Co-Lending Portfolio Program, a private debt platform which was launched in 2013 and has raised $10bn from 11 investors to provide financing to more than 200 firms across 55 developing countries.
In a statement, IFC managing director, Makhtar Diop said: “MCPP One Planet will create a global model for mobilization 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."
