IFC Powers Climate Finance and Gender Equality with $400 Million Boost

The International Finance Corporation (IFC) has pledged $400 million to Bajaj Finance Ltd, aiming to support the expansion of finance access for electric vehicles and energy-efficient products while empowering women-owned enterprises. This initiative aligns with India's climate goals, promoting financial inclusion and market competitiveness in climate finance.

The International Finance Corporation (IFC), part of the World Bank Group, has pledged a significant $400 million to Bajaj Finance Ltd (BFL) as part of a broader $1 billion fundraising initiative. This financial commitment is geared towards expanding access to electric vehicles (EVs) and energy-efficient consumer products.

The move, announced on Wednesday, seeks to bolster the climate finance market, aiding India in reaching its climate objectives while promoting financial inclusivity. IFC's Regional Director for South Asia, Imad N Fakhoury, emphasized the importance of this investment in igniting market competition and encouraging other non-banking financial companies to engage in climate-centric financing.

Furthermore, the partnership between IFC and Bajaj Finance aims to foster gender equality by subsidizing women-owned microenterprises. As India advances its energy sector, the demand for household appliances, particularly air conditioners, is anticipated to surge, projecting a market value increase to $59.19 billion by 2024.

(With inputs from agencies.)