28163 - Cleaner Production Lending Facility

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Environmental & Social Review Summary

Project Number

28163

Company Name

INTERNATIONAL FINANCE CORPORATION

Date ESRS Disclosed

Jul 30, 2009

Country

World Region

Region

Global

Last Updated Date

Oct 25, 2025

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Nov 5, 2015
Invested : Dec 9, 2015

Sector

Other

Industry

Financial Markets

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The proposed Cleaner Production Lending Facility (CPLF) will provide loans up to an aggregate amount of $125 million to promote Cleaner Production (CP) investments among IFC’s portfolio clients in good environmental and social and credit standing. These investments would take the form of small loans made on commercial terms to existing clients for the purpose of financing CP investments (CP Loans).

Each CPLF project supported would be a sub-project of the facility. Typical CPLF projects will be in the areas of energy efficiency, use of renewable energy, recycling, water savings, and use of ‘clean technology’ solutions among a range of manufacturing, service and agribusiness sectors.

CPLF is a follow-up investment to IFC’s 2007 Cleaner Production Lending Pilot, with a scale up made necessary by the successful allocation of all funds provided under that pilot facility and strong demand from IFC’s clients for continued financing support for CP projects.

Overview of IFC's Scope of Review

IFC’s E & S review of the Cleaner Production Lending Facility (CPLF) has been to postulate potential adverse environmental and social impacts which might arise from a Cleaner Production (CP) project, taking account of the experience gained from the Cleaner Production Lending Pilot project.

Environmental assessment of CPLF projects will be undertaken by our portfolio clients (who will be potential CPLF project implementers) on a case-by-case basis and such assessments will be reviewed by IFC. IFC will require these assessments to describe:

- anticipated environmental and cost benefits of the project, including an evaluation of expected reduction in greenhouse gas (GHG) emissions;
- a safe working methodology during project implementation;
- possible community impacts during construction;
- evaluation of possible new ongoing environmental and social impacts which might arise from the project. Examples could be a new source of noise, the introduction to a site of a new chemical requiring special handling, or potentially additional effluent treatment loading.

IFC will review the adequacy of proposals to measure the environmental and other benefits of the CPLF-supported project.

E & S Project Categorization and Applicable Standard

All Performance Standards are applicable to this investment. All CPLF projects will have impacts that require management in accordance with the following Performance Standards:

PS1: Social and Environmental Assessment and Management Systems; and
PS2: Labor and Working Conditions.

A CPLF-supported project could introduce potentially hazardous chemicals, new emissions sources or new sources of noise to a manufacturing site, in which case it would be necessary to evaluate the project’s compliance with:

- PS 3: Pollution Prevention and Abatement; and
- PS 4: Community Health, Safety and Security.

All CPLF projects will be required to have overall positive environmental impacts, and most projects supported will have minimal or no adverse environmental impacts and therefore individually would be considered Category C projects.

However, in rare cases, new though limited potentially adverse, E&S impacts might be introduced by a CPLF project, even though these would be required to be outweighed by project benefits. Such CPLF interventions would be Category B projects, hence the facility under which such projects may be processed is also considered a Category B project.

Environmental and Social Mitigation Measures

Stakeholder Engagement

Given that this Environmental and Social Review Summary relates to establishment of a Facility, there is no local disclosure at the present time.

Sub-projects details will be disclosed in the normal manner through the project-specific Summary of Proposed Investment. If required by consideration of environmental and social, hence project categorization a project specific Environmental and Social Review Summary will also be disclosed.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

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