The International Finance Corporation is not properly tracking greenhouse gas emissions, effectively evaluating less polluting alternatives, or putting in place appropriate mitigation measures in some of its projects, according to a report from its independent watchdog released today.
IFC, the World Bank’s private sector arm, has an extensive set of rules and frameworks to evaluate the environmental and social impacts of its projects. But the report by the Compliance Ombudsman Advisor, or CAO, found IFC is not always adhering to them and that some of the rules and frameworks used are outdated and need to be amended to match current best practices.
This report comes as the World Bank Group has placed a greater emphasis on climate in its new mission to end poverty on a liveable planet. IFC also says climate action is “central” to its operations, reporting that 43% of its long-term financing went to climate-related projects last year.
About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
