IFC Mobilizes $750M to Boost Green Growth and Resilience in Latin America
One of the most notable initiatives announced is a $60 million loan to Jalles Machado, a leading Brazilian producer of organic sugar, ethanol, and bioenergy.
- Country:
- Brazil
In a powerful display of climate leadership and private-sector collaboration, the International Finance Corporation (IFC) — a member of the World Bank Group — convened with its partners and clients in São Paulo, Brazil, last week to formalize more than $750 million in new sustainable investments.
These commitments, spanning energy, nature, forestry, water, agriculture, resilience, and sustainable finance, represent a major step in aligning private capital with climate action and inclusive growth goals. The initiatives are expected to catalyze over $8 billion in total investments, underscoring the transformative role of private-sector engagement in supporting global and regional sustainability efforts — particularly ahead of the COP30 climate summit in Belém.
“Private investment is the engine of sustainable development,” said an IFC spokesperson. “These initiatives demonstrate how financial innovation and partnership can advance climate goals while generating tangible benefits for communities and ecosystems.”
Driving Smart Development Through Private Capital
The new financing commitments reflect IFC’s strategic focus on mobilizing private capital for climate-smart development. By partnering with global investors, municipalities, and corporations, IFC aims to foster resilience, expand access to green finance, and support sustainable growth in emerging economies.
The portfolio includes more than $600 million in debt and $170 million in equity investments, distributed across projects that advance renewable energy, low-carbon agriculture, ecosystem restoration, and sustainable infrastructure.
Each investment, IFC noted, is designed to generate high-impact outcomes — from reducing emissions and restoring natural landscapes to improving food security and urban mobility.
Supporting Climate-Resilient Agriculture in Brazil
One of the most notable initiatives announced is a $60 million loan to Jalles Machado, a leading Brazilian producer of organic sugar, ethanol, and bioenergy.
Jalles Machado has been an IFC client since 2017, and this new financing will expand the company’s climate-resilient agricultural practices across its Usina Santa Vitória plantations. The investment will:
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Promote the use of drought- and pest-resistant sugarcane varieties to improve productivity and sustainability.
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Support soil restoration and precision agriculture to enhance resource efficiency.
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Improve water-use management and reduce environmental impacts.
The initiative will also strengthen IFC’s long-term partnership with Jalles, which serves as a model for sustainable agribusiness transformation in Latin America.
“This investment helps demonstrate that agriculture can be both productive and climate-smart,” said IFC. “It aligns profitability with environmental stewardship.”
Pioneering Sustainable Urban Finance in Colombia
Another major highlight is IFC’s $90 million commitment as anchor investor in a $600 million equivalent local currency offshore green bond issued by the Municipality of Bogotá on November 5, 2025.
This groundbreaking transaction marks the first-ever green bond issued by a Latin American city in offshore markets. Proceeds will finance key urban mobility projects, notably Bogotá Metro Line 2, designed to enhance public transportation, reduce congestion, and lower carbon emissions in one of South America’s most populated urban centers.
The IFC-led investment demonstrates how innovative municipal finance mechanisms can drive sustainable urban transformation while expanding access to global capital markets.
“Bogotá’s bond is a landmark for urban green finance,” IFC stated. “It shows how cities can tap into private capital to deliver climate-resilient infrastructure that benefits millions.”
Scaling Natural Capital and Ecosystem Restoration
On the equity side, IFC announced a $25 million equity investment in AXA IM Alts’ Natural Capital Strategy, which has already secured over $560 million in commitments from institutional investors, including DEG (Germany’s development finance institution) and Proparco (France’s development finance agency).
The initiative focuses on restoring degraded ecosystems, combating deforestation, and supporting companies that generate verified carbon credits linked to biodiversity and social co-benefits. These credits will be integrated into high-integrity carbon markets, ensuring transparency and environmental integrity.
By investing in natural capital, IFC and its partners are promoting an inclusive green economy, one that values ecosystems as essential assets in the fight against climate change.
“Restoring ecosystems is not just an environmental imperative—it’s an economic opportunity,” said IFC. “Natural capital investments help generate jobs, protect biodiversity, and enhance resilience to climate shocks.”
A Model for Climate-Aligned Private Sector Engagement
The IFC emphasized that these collective investments — totaling over $750 million — are part of a broader strategy to mobilize private finance for climate resilience and sustainable growth in developing economies.
By combining debt, equity, and blended finance instruments, IFC seeks to bridge the investment gap for climate mitigation and adaptation projects, particularly in regions most vulnerable to environmental risks.
Many of these new investments will be further detailed in the coming weeks, with additional announcements expected from IFC and its partners.
“The road to net zero will require unprecedented collaboration,” IFC noted. “These landmark agreements show that when the private and public sectors work together, it’s possible to unlock billions for a sustainable future.”
Building Momentum Ahead of COP30
As world leaders prepare for COP30 in Belém, the IFC’s São Paulo commitments reinforce the message that the private sector is indispensable in financing the global climate transition.
By directing capital toward sustainable agriculture, clean energy, and nature-based solutions, IFC’s investments serve as a blueprint for other financial institutions seeking to align profitability with planetary priorities.
The projects launched this week are expected to create jobs, enhance resilience, and strengthen regional economies while helping countries meet their climate targets under the Paris Agreement.
“Sustainability and growth are not opposing goals,” IFC concluded. “They are two sides of the same coin — and together, they form the foundation of shared prosperity.”
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