President Biden has named climate change as the existential threat of our time and called on DFC to support investment in climate mitigation, resilience, and adaptation in the developing world. While climate change impacts all countries, emerging economies are often particularly vulnerable because they lack the infrastructure, insurance, and agriculture technology to protect against severe weather.
DFC is a leader in financing projects that help countries generate power from renewable sources including solar, wind, hydro, and geothermal. The agency has launched a series of climate-focused commitments to extend its work in the developing world.
- Net-zero emission Using credible assumptions, DFC has committed to achieving net zero emissions in its portfolio by 2040.
- Increased climate investments DFC will focus at least 33 percent of new investments on climate-related projects beginning in fiscal year 2023.
- Updated development strategy DFC will update its inaugural development strategy, the Roadmap for Impact, to prioritize climate-focused investments, including those that reduce emissions, increase renewable energy use, protect ecosystems, improve adaptation, and enhance resilience.
- Call for climate-focused funds DFC announced a rolling Call for Applications for funds targeting climate mitigation, adaptation, and/or resiliency.
- Call for Distributed Renewable Energy applications DFC issued a Call for Applications from private companies seeking financing.
- Increased technical assistance for climate projects DFC will commit at least $50 million over the next five years for feasibility studies and technical assistance to help identify, design, and implement new climate projects.
- Risk sharing for climate projects DFC will develop a risk sharing platform with private sector insurance partners to reduce barriers to financing climate projects and expand the agency’s capacity to support innovative projects in challenging environments.
- Increased collaboration DFC will collaborate closely with other development finance institutions and interagency partners to bolster its climate project pipeline.
- Chief Climate Officer DFC created a new position of Chief Climate Officer to lead internal and external coordination on sustainability and climate-related investments.