IDB Invest, a member of the Inter-American Development Bank Group, and IFC, a member of the World Bank Group, have agreed to share the Climate Assessment for Financial Institutions tool or CAFI, IFC’s first-of-its-kind online impact measurement platform, making it easier for financial institutions to estimate the climate change related impact of their financial activities.
The new agreement allows two of the leading multilateral development banks with focus on the private sector to offer CAFI to a larger number of financial institutions.
The cooperation will also pave the way for improved transparency and disclosure for public and private investors and other regulatory bodies that are looking to promote the sustainable development goals.
“In the aftermath of COVID-19, IFC aims to simultaneously promote green finance and transparency in impact measurement for the financial services industry through the use CAFI,” said Peter Cashion, Global Head of Climate Finance in IFC’s Financial Institutions Group.
To date, 121 financial institutions have access to CAFI with $6.1 billion of climate finance volume reported through the platform. The resulting impact captured through it, is an annual reduction of 12.3 million tons of carbon dioxide equivalent, 26.7 GWh of renewable energy generated, 1.2 million square meters of green area built, and 2.7 million cubic meters of water saved.
“We, at IDB Invest, are committed to providing our clients with state-of-art tools, such as CAFI, and technical advice in tandem with our financing to increase the positive impact of the private sector in Latin America and the Caribbean. The implementation of CAFI will help our clients quantify in a clear and transparent way their positive impact and contribution to the fight against climate change,” said Hilen Meirovich, head of Climate Change at IDB Invest.
CAFI is available to any financial institution that invests at scale in climate friendly projects. Multilateral development banks, international financial institutions, banks, and fund managers may access the platform, which is available here.