A new initiative aimed at helping financial institutions in Egypt, Mexico, South Africa and the Philippines scale financing for climate projects has been launched.

IFC, a member of the World Bank Group, will work with banks in the four countries to mobilise private sector financing for climate mitigation and adaptation projects and help align their strategies with the targets of the Paris climate agreement.

The initiative is designed to increase climate lending by participating banks to 30% of their portfolios by 2030, while reducing exposure to coal.

The first phase of the programme will be funded by the International Climate Initiative (IKI) of Germany’s Federal Ministry of the Environment, Nature Conservation and Nuclear Safety.

Paulo de Bolle, Global Director of IFC’s Financial Institutions Group said: “The banking sector is critical to raising the capital necessary to address the climate emergency and achieve the ambitious goals of the Paris Agreement.

“This initiative will provide valuable technical assistance that helps banks deliver more capital for climate-friendly projects – reducing their own climate risks, curbing emissions and financing green infrastructure.”