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An investigation by Inclusive Development International, Recourse, and Trend Asia reveals that the International Finance Corporation (IFC) continues to indirectly support coal-fired power projects in Asia through investments in financial intermediaries, despite commitments to align with the Paris Agreement.

This report by Trend Asia alleges that the International Finance Corporation (IFC) is indirectly financing the environmentally and socially destructive nickel industrial park on Obi Island, Indonesia, through financial intermediaries. The document details severe ecological damage, human rights violations, and the use of captive coal power plants that undermine the IFC's climate commitments and the Paris Agreement.

This working paper by Germanwatch, NewClimate Institute, and WRI outlines a framework for development finance institutions (DFIs) to align indirect investments—those channeled through financial intermediaries—with the Paris Agreement's goals for low-emission and climate-resilient development.

This research paper proposes a phased, risk-based framework for development finance institutions (DFIs) to align their indirect investments—those channeled through financial intermediaries (FIs)—with the goals of the Paris Agreement. The authors argue that while DFIs have focused on direct project financing, the substantial volume of intermediated lending creates a risk of supporting climate-misaligned activities. The proposed framework relies on four pillars: mitigation, adaptation, governance, and transparency.

This report by Recourse and a coalition of partners evaluates the International Finance Corporation's (IFC) 'Approach to Greening Equity in Financial Institutions' (GEA). While acknowledging the GEA's goal to phase out coal-related investments by 2030, the authors argue that the current framework contains significant loopholes and fails to align with the Paris Agreement. The document proposes ten essential reforms to ensure the IFC's equity investments in financial intermediaries are truly green, including expanding the scope to oil and gas, improving transparency, and addressing human rights and gender equality.

This research paper by the World Resources Institute proposes a practical approach for development finance institutions (DFIs) to align their indirect investments, made through financial intermediaries, with the goals of the Paris Agreement.