<h1 class="ql-align-center"><strong style="color: rgb(230, 0, 0);">International Finance Corporation</strong></h1><h1 class="ql-align-center"><br></h1><h3><strong>Context&nbsp;</strong></h3><ul><li class="ql-indent-1">The<strong> International Finance Corporation (IFC),</strong> the private sector arm of <strong>The World Bank,</strong> has said it will not support investments in new coal related projects. The IFC funds banks and other ﬁnancial institutions that in turn lend to infrastructure and energy projects.</li><li class="ql-indent-1">In 2020, the IFC had unveiled a policy requiring clients to cut their exposure to coal projects by half by 2025, and to zero by 2030, but did not halt new investments. The latest update disallows this too.</li></ul><h3><strong>About&nbsp;</strong></h3><ul><li class="ql-indent-1">IFC was founded in <strong>1956</strong> on a bold idea: that the private sector has the potential to transform developing countries.&nbsp;</li><li class="ql-indent-1">Since then we’ve expanded to more than 100 countries, coining the term “emerging markets” and pioneering new markets such as sustainable bonds.</li><li class="ql-indent-1">It offers investment, advisory, and asset management services to encourage private sector development in developing countries.</li></ul><h3><strong>World Bank Group&nbsp;</strong></h3><ul><li class="ql-indent-1">The World Bank has created new organizations within itself that specialize in different activities. All these organizations together are called the World Bank Group. It consists of:</li><li class="ql-indent-2"><strong>IBRD</strong> lends to low- and middle-income countries;</li><li class="ql-indent-2"><strong>International Development Association (IDA)</strong> lends to low-income countries;</li><li class="ql-indent-2"><strong>International Finance Corporation (IFC)</strong> lends to the private sector;</li><li class="ql-indent-2"><strong>Multilateral Investment Guarantee Agency (MIGA)</strong> encourages private companies to invest in foreign countries; and</li><li class="ql-indent-2"><strong>The International Centre for Settlement of Investment Disputes (ICSID) </strong>helps private investors and foreign countries work out differences when they don't agree.</li></ul><p class="ql-align-center"><strong style="color: rgb(230, 0, 0);">&nbsp;</strong></p><h1 class="ql-align-center"><strong>PRELIMS NOTES:</strong><a href="https://www.sunyaias.com/subscription-details/prelims-2023-sunya-notes-current-affairs" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 102, 204);"><strong>CLICK HERE</strong></a></h1>