Transition risk: IFC uses carbon pricing to address transition risk and avoid stranded assets. Since May 2018, a carbon price is included in the economic analysis of project finance and corporate loans with defined use of proceeds in the cement, chemicals, and thermal power generation sectors, where estimated annual project emissions are over 25,000 tons of carbon dioxide equivalent. These are IFC's most greenhouse gas-intensive projects and cover over half of our investments' greenhouse gas footprint. IFC includes the impact of the carbon price on the project's economic performance in Board papers.