International Finance Corp., a member of the World Bank Group, raised $280 million with the governments of Britain, Canada and Azerbaijan’s sovereign wealth fund for projects related to climate change.
The IFC Catalyst Fund will invest in private equity funds that back companies developing new ways to curb emissions in emerging markets, the Washington-based IFC said today in a statement.
IFC contributed $75 million with Britain putting in $80 million, the U.K. Department of Energy and Climate Change said today in a separate statement. Additional investors and pension funds are expected to participate in further fundraising rounds, according to DECC.
“Addressing climate change is a strategic priority for IFC, and private equity is well suited to jumpstart climate-friendly investment in emerging markets,” Jin-Yong Cai, executive vice president and chief executive officer of IFC, said in the group’s statement.