Olusola Bello
The World Bank Group is so far the biggest multilateral funder of climate investments in developing countries and it intends to go further in helping countries reduce poverty and rise to the challenges of climate change.
Between 2016 and 2021, the World Bank Group delivered over $109 billion in climate finance, including a record $26 billion in FY21.
Under the World Bank Group’s Climate Change Action Plan (CCAP), it was committed to providing $25 billion on average in annual financing between FY21-25, for initiatives that lower GHG emissions and foster adaptation, while reducing poverty and inequality and improving development outcomes.
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Under the same scheme the Bank Group is committed to increase its climate finance target to 35% of total commitments over the next five years, align our financing flows with the goals of the Paris Agreement, and achieve results that integrate climate and development.
The World Bank Group has been ramping up its finance for renewable energy for several years. Last year, the World Bank (IBRD/IDA) did zero fossil fuel financing. It ended all investments in upstream oil and gas in 2019.
From 2016 to 2020, the Bank financed 34 gigawatts of renewable energy to help communities, businesses and economies thrive.
In 2020, the World Bank Group accounted for over half of all multilateral climate finance to developing countries and over two-thirds of adaptation finance.
World Bank analysis finds that climate change may push over 130 million into poverty by 2030 and cause over 200 million people to migrate within their own countries by 2050. Investing in adaptation to help countries and companies become more resilient is therefore critical.
The World Bank boosted climate adaptation support from 40% of climate finance in 2016 to 52% in 2020.
“We are supporting communities around the world to make the transition away from coal, including through decommissioning coal plants and supporting workers to make the shift to new clean jobs.”
The World Bank Group has also not made any coal investments for over a decade
“To achieve our climate objectives, it will be critical to integrate climate and development objectives and continue to identify and finance projects at the country level that tackle mitigation and adaptation while channeling appropriate sources and structures of financing toward these projects for maximum impact,” the stated.