OPIC and IFC Sign Memorandum of Understanding to Promote Resource Efficiency in Building Projects in Emerging Markets
August 31, 2018
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) and the International Finance Corporation (IFC) on Thursday signed a memorandum of understanding to collaborate on the promotion of resource efficiency in building construction projects.
Under the agreement, OPIC, the U.S. Government’s development finance institution, will encourage their private sector clients to adopt IFC’s EDGE green building certification. IFC will support OPIC through training offered to its clients on the EDGE platform, which includes a software application for assessing the resource efficiency of building projects in more than 140 countries.
An innovation of IFC, EDGE (“Excellence in Design for Greater Efficiencies”) proves the business case for building and branding green, demonstrating that environmental responsibility correlates with smart business. Fast, easy and affordable, EDGE empowers builders to choose technical solutions that reduce the environmental impacts of their projects while capturing costs and projected savings.
According to a United Nations report, the portion of the world’s population living in urban areas is projected to increase from 55 percent today to 68 percent by 2050, creating demand for new infrastructure and requiring resource efficiency in development. Projects become EDGE certified by meeting a standard of 20 percent less energy, water and embodied energy in materials.
“This agreement will help OPIC advance its longstanding commitment to lasting development,” said Ryan Brennan, Vice President, OPIC Office of Investment Policy. “As many emerging markets see rapid growth in their urban populations, OPIC is committed to helping them meet their needs in a manner that uses resources responsibly. IFC’s EDGE will be a valuable resource for OPIC’s private sector partners.”
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
An innovation of IFC, EDGE helps property developers to build and brand green in a fast, easy and affordable way. EDGE is supported by free software that encourages solutions to reduce energy, water and the energy used to make building materials by at least 20 percent, which is the standard for EDGE certification. The program has been generously supported by the following donors: Austria, Canada, Denmark, ESMAP, EU, Finland, GEF, Hungary, Japan and Switzerland. For more information, visit www.edgebuildings.com.