Creating markets for climate business : an IFC climate investment opportunities report

Abstract

Climate change presents us with perhaps our biggest challenge. In recent years, we have seen growing evidence of the effects of climate change. Greenhouse-gas pollution continues to build up in the atmosphere, causing more intense storms, floods, droughts, and heat waves. In recent years, we have seen growing certainty and evidence of climate change impacts, with supply chains disrupted, increased commodity price volatility, and severe impacts on communities. This report has been designed to help inform private companies and investors about the myriad opportunities that exist in climate business around the world. It will help governments translate their climate ambitions into successful markets for climate business. It synthesizes the lessons learned from several decades of successful market creation across the globe, spanning sectors and regions. The following chapters offer guidance for creating markets in seven key climate business sectors: (i) Grid-connected renewable power; (ii) Off-grid solar and storage; (iii) Climate-smart agriculture; (iv) Green buildings; (v) Climate-smart urban transport and logistics; (vi) Climate-smart urban water infrastructure; and (vii) Climate-smart urban waste management. Each of the sectors has a market snapshot and growth forecast, along with a set of proven policies and regulations, financial innovations, and business models. Finally, it showcases two solution to help cities attract private capital for climate-smart urban infrastructure: enhancing city creditworthiness and creating public-private partnerships.