1. US – BRAZIL INDUSTRIAL ENERGY EFFICIENCY WORKSHOP Rio de Janeiro, Brazil August 2011

2. Introducing IFC Established in 1956, most of our 3,354 staff work from about 100 offices in 86 countries. We invest, advise, mobilize capital, and manage assets.  Committed portfolio for FY10: $38.9 billion; 1,656 firms.  Investments in FY10: $12.7 billion for IFC’s own account, $5.3 billion mobilized  Under management within the Asset Management Company: $4 billion.  Advisory expenditure for FY10: $286 million IFC started formal environmental and social screening of its investments in the early nineties and became the acknowledged world leader on these issues when the Equator Principles were launched in 2004. The biggest challenge to development today is climate change. While public policy is key, the private sector must also play a leading role. That is why 2 We create opportunity for people – to escape poverty and improve their lives Climate Business is a core priority for IFC

3. In FY10 IFC invested $1.6 billion for its own account: 84 projects; total climate investment of $7.6 billion.  Infrastructure & Natural Resources finance on/off-grid renewable capacity; resource efficiency in power, transport & information and telecommunications; water  Manufacturing, Agribusiness & Services finance resource efficiency across sectors; climate industry equipment and supply chains; agribusiness and forestry  Financial Markets works through banks, leasing companies, funds and other intermediaries to finance small/medium investments  Clean Technology – investments in innovative, transferable, scalable climate technologies  Climate Financial Products & Funds to better serve companies and attract more capital across all sectors IFC plans to double its commercial Climate Business investment by FY13 to $3.2 billion … 3

4. Mobilizaton FY Advisory spend forecast to triple to $47 million by FY13 4... and increased mobilization will accelerate Climate Business investment growth.

5.  Commercial Equity, Debt and Mezzanine Finance Renewable energy generation capacity Resource efficiency investments Climate industry equipment and supply chains Carbon sequestration and avoided deforestation Lenders Climate Change Private Equity Funds Cleantech growth capital  Carbon Finance  Concessional Finance  Advisory Services  Convening industry players for research / standard setting How does IFC work with firms on Climate Business?

6. We combine innovation, mobilization and integration to scale our impact… Innovation Mobilization Cleantech Innovation Transfer Fund Debt/Mezz Facility CP3 Fund New tech and business models - venture capital AS-IS Integration GEF, CTF Trade Finance Cleaner Production Facilities Wholesaling through FIs Strategy, Metrics and Knowledge Management Carbon Delivery Guarantees Green Bond Post 2012 Carbon Facility €150m Enabling environment Resource efficiency: TA and benchmarks Standards KfW Risk assessment 6

7. … for example, IFC can intervene in multiple ways in a sector like green buildings. Country-wide Deal-by Deal Wholesale Approach Banks Leasing ESCOS Green Mortgages Debt, Equity Cleaner Production Lending Facility Building Codes Advisory Audits In-house advice TA to lenders Sector studies (design, benchmarks) 7 Investments

8. Project Example #1 – Glass Sector Client

9. Project Example #2 – Mexico: Optima Energia

10. Project Example #3 – Colombia: Cartones America (CAME) CPLP

11. Project Example #4 – Brazil: Bauducco CPLP

12. Recent Renewable Capacity Investments $13,500,000 Subordinated Debt and Debt Colombia Lender May 2008 Century Caruqia Small Hydro $75,000,000 Sub Debt and Debt Mexico Wind Eurus $30,750,000 Loan Project Financing Chile Lead Lender of US$60.75m financing February 2009 Wind Norvind Lead Lender of US$375m financing May 2010 $52,000,000 Loan Project Financing Bulgaria Wind Lender December 2008 AES Kavarna US$23,200,000 Loan Project Financing China Hydro Lender October 2009 Zhongda Hydro $3,100,000 Loan Project Financing India Lender December 2009 Biomass Auro Mira US$1,700,000 Equity Thailand May 2010 Solar Solar Power Company $750,000 Equity Senegal June 2009 Solar Office National d’Electriciie 12 commercial finance

13. Recent Investment in Resource Efficiency, Sustainable Energy Supply Chains and Sequestration India: VicatSagar (cement) $9m loan(*) Apollo Tires III (low rolling resistance tires and waste heat recovery) $30m loan Jain Irrigation (micro/drip irrigation systems) $60 million loans/equity Philippines: Sunpower (solar cells) $75m loan Mexico: Optima Energia (hotel ESCO) US$10m loan Tanzania: Green Resources (biomass/plantation) $18m loan Turkey: Trakya Cam (energy efficiency and solar glass) $55m loan Russia: Borets (energy efficient motors/pumps) $33m loan(*) Russia: Borets (energy efficient motors/pumps) $33m loan(*) Ghana: Ashesi University (“green building” incl. biogas use) $0.2m loan(*) Note (*) financing for climate friendly project; was part of a larger total IFC investment China: Suntech (solar cells) $50m convertible debt 13 commercial finance

14. Climate Change and Sustainability Investments through Lenders to date Trade in Latin America Network of over 600 clients Total volume over $1.25 billion through over 40 lenders Leverages over $2.5 billion Supports SME EE and small renewable energy Network of over 600 clients Total volume over $1.25 billion through over 40 lenders Leverages over $2.5 billion Supports SME EE and small renewable energy 14 commercial finance

15. IFC has invested $154 million in 8 Climate Change Funds South Asia: GEF South Asia Clean Energy Fund, $10m Aloe II (Green Investment Asia Sustainability Fund I) $19.2m China: China Environment Fund III, $15m Southern Africa: Evolution One Fund, $20m GEF Africa Forestry Fund, $20m East Asia: Asia Environment Partners, $25m Clean Resources Asia Growth Fund, $25m Asia Water Fund, $20m 15 commercial finance

16. Recent Growth Capital Investments in Cleantech India: Husk Power (biomass-fired microgrids) $0.4m Applied Solar (sustainable energy for mobile base stations) $15.4m Azure Power (grid-connected solar) $10m Attero Recycling (e-waste recycling) $5m China: Shuoren (furnace energy efficiency) US$8m Tianjin Haitai (green asphalt) US$8m For portfolio updates: www.ifc.org/cleantech 16 commercial finance

17. Significant experience in carbon markets* Deqingyuan China €3,500,000 2008 Biogas to power ING Bank Ukraine 550,000 ERUs 2007 Coal mine methane Enercon India €6,600,000 2006 Wind farms Brascan Energetica Brazil € 8,500,000 2005 Run-of-river hydros Ecopower Sri Lanka €3,600,000 2005 Run-of-river hydros Phascon China €16,000,000 2008 Landfill gas to power India Hydropower Development Company IHDC India €4,800,000 2006 Run-of-river hydros AgCert International Plc Mexico/Brazil €7.7 million equity 2005 Animal waste management Omnia Fertilizer South Africa 900,000 CERs 2008 N 2 O destruction Rain CII Carbon (India) Ltd. India 850,000 CERs 2007 Waste heat recovery Estre Ambiental S.A. Brazil $20 million senior loan $4.5 million sub debt 2009 Solid waste management Carbon Delivery Guarantee IFC recently launched the €150M Post-2012 Carbon Facility to extend carbon markets and increase access for projects that reduce emissions. * Selected credit purchase, delivery guarantee, and carbon-linked financing transactions shown. 17 carbon finance