DFC commits to net zero by 2040, raises climate-focused investments

The US International Development Finance Corporation (DFC) has unveiled a series of new climate-focused commitments, including a pledge to reach net zero emissions through its investment portfolio by 2040.

The measures, announced in support of President Biden’s Leaders Summit on Climate, also features a commitment to increase climate-focused investment to 33% of new investments beginning in financial year 2023, including investments in climate mitigation, adaptation, and resilience in developing countries. 

DFC will also work to develop a risk-sharing platform with private sector insurance partners to reduce barriers to financing climate projects, expanding the agency’s capacity to finance innovative projects in challenging contexts. The platform will focus on developing markets and will be directly targeted to individual projects that will reduce carbon emissions through clean energy production, more efficient and sustainable agriculture and industry, and the protection of fragile ecosystems.

And the DFI announced plans to hire its first-ever chief climate officer to lead its internal and external coordination on sustainability and climate-related investments.