Challenge

Over half of global GDP depends on ecosystem services that underpin communities and economies. Public resources are insufficient; reversing nature loss alone requires about $700 billion annually. Making environmental solutions bankable—through strengthened policies, effective resource management, risk mitigation, and standardized outcomes—is essential to crowd in private capital across real-economy sectors such as forests and fisheries, supporting job creation and the sustainable transformation of value chains.

Results and Outcomes

World Bank
Environment

In Türkiye, a $400 million green credit-line supports heavy industry to adopt energy-efficient and low-carbon technologies. For example, a $5 million loan is upgrading a copper facility, improving efficiency by nearly 50 percent and reducing emissions by 35 percent. Larger loans—up to $80 million—finance renewable energy for industrial use. The operation is on track to mobilize $443 million, driven by strong policy signals including Türkiye’s Emissions Trading System and the EU’s carbon border adjustment mechanism.

In Nepal, concessional finance channeled through financial intermediaries crowded in private lending to forest-based Small and Medium Enterprises (SMEs) mobilizing $1.9 million in private capital across 30 enterprises. This enabled firms to improve bankability by scaling production, adopting improved technologies and strengthening marketing strategies.

In Côte d’Ivoire, forest and cocoa sector reforms—supported by a World Bank’s policy-based guarantee— improved traceability across 500,000 hectares and enabled up to approximately $507 million in sustainability-linked commercial financing. This is supplemented by design and implementation of an Emission Reduction Program, which has generated and monetized revenue from sale of high integrity carbon credits. Technical advisory has shaped policy dialogue and reform to leverage public-private-partnerships ($138 million) to de-risk and enable private sector investment for rehabilitation of 100,000 hectares.

In Somalia, improved fisheries governance and the development of related infrastructure enhances private investment in processing, exports and other pre/post-harvest services.

International Finance Corporation (IFC)
Nature

In Brazil, IFC anchored a Sustainability-Linked Bond (SLB) issuance by the Brazilian cosmetics company, Natura, investing approximately US$55 million (BRL 300 million) out of the total US$240 million (BRL 1.32 billion) issuance. This SLB represents the first in Brazil with targets specifically tied to bio-ingredient sourcing from the Amazon. This has supported Natura to raise additional funding to develop sustainable agroforestry supply chains, boost local communities, and protect the Amazon resulting in private capital being mobilized.

Pollution/Circular Economy

IFC’s investment in Servify  promotes resource-efficient growth by extending electronic device lifespans and enabling formal e-waste management.  It is also improving the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in India by integrating thousands of MSME repair centers and logistics providers into a structured digital service network that will improve income stability, and formalization.

WBG Approach

The World Bank Group (WBG) combines policy reform, financial innovation, and targeted investment to unlock private capital for environmental solutions. Working across public and private sectors, it strengthens regulatory frameworks, clarifies revenue streams, and improves data and monitoring reporting and verification systems to convert environmental benefits into measurable, financeable outcomes that build confidence for firms, lenders and investors. Key enabling areas include licensing, traceability, forest and fisheries governance, and certifications and standards. These reforms are paired with risk-sharing instruments—such as policy-based guarantees, credit lines, and blended finance—as well as advisory support for sustainability-linked instruments. Sequencing is critical: in fragile contexts like Somalia, governance and infrastructure lay the foundation for private investment, while in middle-income countries such as Türkiye, green credit lines address market gaps for industrial decarbonization. An integrated approach, leveraging IFC, Multilateral Investment Guarantee Agency (MIGA), and partnerships with PROGREEN, PROBLUE, and Global Program on Sustainability (GPS), enables scale from reform to investment.

Contribution to WBG Targets and Jobs

These investments advance the WBG's Capital Support targets. They support the jobs agenda through the expansion of SME finance, strengthened environmental value chains, and the creation of cleaner, more competitive industries. In Côte d’Ivoire, forest and agroforestry investments are expected to improve livelihoods for over 100,000 people. In Nepal, forest-based enterprises support thousands of households, including women and youth. Across 30 supported SMEs, women account for 25 percent of jobs created, moving toward a 30 percent target by project completion.  In Somalia, investments in fisheries governance and infrastructure support around 60,000 beneficiaries, increasing incomes and enabling job creation across processing, cold-chain logistics, and trade.

Lessons Learned

Focusing on a value chain transformation approach and bringing a tailored solutions package sequencing data, standards, public infrastructure, policy and regulatory reform with financing turns environmental outcomes into bankable investments, enabling private capital at scale. In fragile contexts, as in Somalia, strengthening fisheries governance and regulatory reforms (including licensing systems, monitoring, control and surveillance to address illegal, unreported and unregulated fishing) and investing in public infrastructure (such as landing sites and cold-chain facilities) reduce risks to enable private investment and market creation Côte d’Ivoire shows that forest governance and cocoa traceability reforms, when linked to a policy-based guarantee, can unlock large-scale commercial financing and strengthen investor confidence. The Nepal case confirms that de-risked intermediated finance can crowd in lending to forest SMEs, while underlining the need to build enabling systems and pipelines before capital scales. Meanwhile, Türkiye demonstrates that EU and national low-carbon policy signals can be matched with project finance to mobilize private co-financing for cleaner industry. IFC’s investments in circular economy platforms such Servify further demonstrate that environmental solutions can scale commercially when supported by viable business models and market demand. IFC’s experience in Brazil shows that anchor investments help catalyze markets to enable companies to mobilize private capital for environmental outcomes related to sustainable supply chain, boosting the local economy and communities, and contributing to the protection and regeneration of forests.

Moving Forward

The World Bank Group will continue its proven approach, integrating public and private solutions to help clients turn their environmental priorities into investable opportunities. Through its public sector arm, it will support stronger policies, clearer regulations, and better data systems to improve natural resource management and create conditions for private investment.  Public financing will help develop markets and strengthen small and medium enterprises. Through its private sector arms, it will work with financial institutions and industry to structure environmental finance solutions to crowd in institutional capital, reduce non-commercial risks and mobilize cross-border capital. Partnerships with global climate and nature funds (GEF, CIF, GCF) as well as multi-donor trust funds (PROGREEN, PROBLUE) and other development banks will further leverage impact around job creation, poverty reduction and resilient growth.