World Bank plans $23 million investment in Ardian carbon fund for Africa and emerging markets 

World Bank Group, through its private sector arm, International Finance Corporation (IFC), is considering an equity investment of up to €20 million ($23 million) in Averrhoa Nature-Based Solutions Fund, a carbon-focused private equity vehicle managed by Ardian France, as it deepens its push into climate finance across emerging markets.

The proposed €20 million ($23 million) investment, disclosed on June 26, 2026, includes up to €15 million ($17.1 million) from IFC’s own account, the private sector arm of the World Bank with an additional €5 million ($5.7 million) from its Frontier Opportunities Fund. The fund, which is still pending approval, is targeting a total size of €250 million ($284.55 million), with a hard cap of €500 million ($569.21 million).

Averrhoa’s climate-focused strategy
Averrhoa Nature-Based Solutions Fund is designed as a closed-end vehicle focused on financing projects that generate carbon credits through the removal of carbon dioxide from the atmosphere. Its strategy centers on nature-based solutions, including reforestation, land restoration, and wetland rehabilitation.

The fund, the World Bank’s private investment arm, will invest across emerging markets in Africa, Latin America, and Asia, targeting scalable projects that combine environmental impact with commercial returns. By focusing on carbon removal rather than avoidance, the fund aims to position itself within a growing segment of the voluntary carbon market.

IFC’s backing is expected to play a key role in validating the fund’s strategy in what remains an evolving and relatively untested asset class.

Blended finance to de-risk investment
A portion of IFC’s commitment, up to €5 million ($5.7 million), will be deployed as a subordinated co-investment through its blended finance platform. This structure is intended to absorb part of the investment risk and attract additional institutional capital into the fund.

Without this concessional layer, IFC noted that its ability to support the fund and the broader voluntary carbon market would be limited due to the sector’s inherent risks. The subsidy element tied to the blended finance component is estimated at approximately 0.4% of the fund’s total target size, although this figure may require verification.

The approach aligns with IFC’s broader strategy of using blended finance to unlock private capital in frontier sectors, particularly those linked to sustainability and climate resilience.

Driving carbon markets in emerging economies
Beyond capital deployment, the fund is expected to help establish commercially viable models for carbon sequestration in developing markets. IFC anticipates that the initiative could demonstrate how private equity structures can deliver both financial returns and measurable climate outcomes.

If successful, Averrhoa could serve as a blueprint for scaling investment into nature-based solutions, helping channel global capital into carbon removal projects across emerging economies.

As an anchor investor, IFC’s participation is also expected to support the fund’s fundraising efforts, attract new institutional investors, and ensure adherence to environmental, social, and governance standards.

With global demand for high-quality carbon credits rising, the fund’s performance will be closely watched as a test case for the role of private capital in accelerating climate action in emerging markets.