International Finance Corporation (IFC)

• The International Finance Corporation (IFC), the private sector arm of The World Bank, has said it will not support investments in new coal projects.
• Earlier, in 2020, IFC had unveiled a policy requiring clients to reduce their exposure to coal projects by half by 2025, and to zero by 2030, but did not prevent new investments.
• The IFC funds banks and other financial institutions that in turn lend to infrastructure and energy projects. The IFC has reportedly lent close to $5 billion to almost 88 financial institutions in India.

About International Finance Corporation (IFC)

• Established in the 1950s, the International Finance Corporation (IFC) headquartered in the United States of America.
• It is the largest global development institution focused exclusively on the private sector in developing countries.

 WORLD BANK GROUP comprises of 5 institutions

Collectively, all 5 institutions are known as the “World Bank Group”

1. International Bank for Reconstruction and Development Financing for middle-income developing countries
2. International Development Association-Financing for low-income developing countries

Together IBRD and IDA are known as the “World Bank”

3. International Finance Corporation- Investments and advisory services to encourage private-sector development.
4. Multilateral Investment Guarantee Agency- Political risk insurance and credit enhancement guarantees.
5. International Centre for the Settlement of Investment Disputes (ICSID) – International arbitration of investment disputes. (India is not a member)