The preparation and implementation of IFU's Climate Policy

The Danish Development Finance Institutions, DFI, called IFU, has embarked upon an ambitions climate policy. IFU is a key Danish instrument for mobilising climate-relevant private investments to support developing countries transformation to low-carbon and climate-resilient pathways by leveraging substantial financing to mitigation and adaptation projects.

In the policy, IFU commit itself to an alignment with the objective of the Paris Agreement, and to contribute to the transformational changes that this objective entails over the coming years, making its investment flows consistent with a pathway towards zero greenhouse gas emissions and climate-resilient development.

UDP assisted in the development of the policy, amongst others through a benchmarking of other comparable DFIs climate ambitions, and with a view to the best practice and norms agreed amongst the DFIs. UDP is now assisting with the implementation of the policy, incl. with the estimation of relative and absolute green-house gas impacts of individual investments and of the portfolio. The assistance is provided through an open-ending framework contract.