IDFC

The International Development Finance Club (IDFC) is a network of 24 national, regional and bilateral development banks. AFD was one of its founding members in 2011 and has been chairing the organization since October 2017.
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The International Development Finance Club (IDFC) members, working together to implement the Sustainable Development Goals & the Paris Agreement Agendas, join forces as a platform to promote & leverage Sustainable Development Investment worldwide.

A leading role

1'30 to understand what is IDFC

AFD was one of the founding members of IDFC in 2011. This network brings together 24 national, regional and bilateral development banks, including TSKB (Turkey), SIDBI (India), CDG (Morocco), COFIDE (Peru), CDB (China), KfW (Germany) and JICA (Japan).

What’s special about IDFC is that the vast majority of its members are institutions from developing and emerging countries.
 

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UNPARALLELED CAPACITY FOR ACTION

With US$ 3 trillion in accumulated assets and more than US$ 630 billion in annual financing, IDFC is the top provider of public funds for development.

IDFC represents five times the size of all the multilateral banks put together.

Its composition makes the traditional North-South divisions obsolete, and in doing so it allows its members to speak with one voice in the principal international discussions on development and climate financing. IDFC thus fully embodies the form of partnership action that stems from the major international commitments of 2015, including the important UN conference on Financing for Development in Addis Ababa.

The development banks in developing and emerging countries combine the advantages inherent to development banks with those related to their local presence, and they enjoy considerable technical and financial capacities. That’s why they’ve been called on to play a leading role in achieving the Sustainable Development Objectives (SDGs) and in implementing the Paris Climate Agreement.

A SHARED VISION

The IDFC members also share common goals: that of consolidating the positioning of these banks as the third pillar of development financing—alongside the multilateral banks and the private sector—and that of increasing their contribution to financing more low-carbon and resilient paths of development.

Climate objective

Each year, IDFC commits US$ 100 billion to “green” and climate financing, making it the foremost global public donor for energy and ecological transitions.

IDFC has also undertaken work to harmonize financial actors with regards to the tools and practices they use, to better take into account climate issues in development financing. In concrete terms, common methods of climate-financing accounting have been developed and are now being used by very many financial actors.

Climate finance

COMMITMENTS BY THE FINANCE WORLD

AFD, in relation with other IDFC members and the multilateral development banks, has also played a key role in setting up the Climate Action in Financial Institutions Initiative, which was launched during the COP 21.

This initiative has established five international principles for integrating climate issues into the finance world. It has already mobilized dozens of public and private financial institutions globally.

Some IDFC members are moreover going to implement financing from the Green Climate Fund (GCF). This is a first in the history of development financing. This fund—meant to become the biggest multilateral fund for the climate—has put its trust in banks such as CAF in Latin America; DBSA in South Africa; and CABEI, which covers Central America, so that these institutions channel investments to benefit mitigation or adaptation policies, programs, and projects.

AFD wants to make the most of its term as chair of the IDFC, by continuing to strengthen climate financing in the network, especially in the context of the Paris Agreement.

The 24 members

IDFC map

HOW DOES IT WORK?

IDFC is structured around its chair and a steering committee. This committee is made up of the Brazilian development bank (BNDES), the Andean Development Corporation – Development Bank of Latin America (CAF), Caisse de dépôts et gestion of Morocco (CDG), the Development Bank of Southern Africa (DBSA), the Islamic Corporation for the Development of the Private Sector (ICD), and the Japan International Cooperation Agency (JICA).

IDFC meets annually to take common action to meet the major ecological and development challenges. It works on a daily basis on the five strategic themes: sustainable infrastructure, renewable energy, energy efficiency, economic and social inclusion, and mapping of green financing.