• 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”

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