World Bank doubles funding for Climate Action

World Bank doubles funding for Climate Action

Washington: The World Bank Group on Monday announced that it will be doubling its current 5-year investments to around USD 200 billion in support for countries to take ambitious climate action for the year 2021-2025.

“The new plan significantly boosts support for adaptation and resilience, recognizing mounting climate change impacts on lives and livelihoods, especially in the world’s poorest countries,” stated the World Bank Group.

Terming climate change as an “existential threat” to world’s poorest and vulnerable, World Bank Group President, Jim Yong Kim said, “These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change. We are pushing ourselves to do more and to go faster on climate and we call on the global community to do the same.

This is about putting countries and communities in charge of building a safer, more climate-resilient future.”

World Bank also stated that USD 200 billion is made up of approximately USD 100 billion in direct finance from the World Bank (IBRD/IDA), and approximately 100 USD billion of combined direct finance from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) and private capital mobilized by the World Bank.

“By ramping up direct adaptation finance to reach around 50 USD billion over FY21-25, the World Bank will, for the first time, give this equal emphasis alongside investments that reduce emissions,” the statement added.

World Bank Chief Executive Officer, Kristaline Georgieva asserted that climate change has led to the loss of lives and livelihoods.

“We must fight the causes, but also adapt to the consequences that are often most dramatic for the world’s poorest people. This is why we at the World Bank commit to step up climate finance to $100 billion, half of which will go to build better adapted homes, schools and infrastructure, and invest in climate smart agriculture, sustainable water management and responsive social safety nets,” Georgieva said.

It also revealed that the World Bank will develop a new rating system to track and incentivise global progress.

“Actions will include supporting higher-quality forecasts, early warning systems and climate information services to better prepare 250 million people in 30 developing countries for climate risks.

In addition, the expected investments will build more climate-responsive social protection systems in 40 countries, and finance climate smart agriculture investments in 20 countries,” the press release stated.

“Our job is to go out and proactively find those opportunities, use our de-risking tools, and crowd in private sector investment. We will do much more in helping finance renewable energy, green buildings, climate-smart agribusiness, urban transportation, water, and urban waste management,” he emphasised.

According to the press release, in 2018, the World Bank Group provided a record-breaking USD 20.5 billion in finance for climate action, thereby doubling delivery from the year before the Paris Agreement and meeting its 2020 target two years ahead of schedule.

It will also support as many as 20 countries to implement and update Nationally Determined Contributions and increase engagement with Ministries of Finance in the design and implementation of transformative low-carbon policies.