The bank committed in December to dedicate 45% of its total lending for fiscal year 2025, which began July 1, to supporting climate adaptation and mitigation (Photo: Shutterstock)
The World Bank Group said Thursday it provided a record $42.6 billion in climate finance in fiscal 2024, up 10% from $38.6 billion the previous year and close to its target of allocating 45% of total financing to climate projects.
The $4 billion increase in climate financing during the fiscal year ended June 30 shows the bank is making progress toward its goals, but still falls far short of the trillions of dollars in additional resources needed annually to finance the clean energy transition in emerging markets and developing countries.
World Bank President Ajay Banga has increased balance sheet leverage and taken other measures to boost capital adequacy. For example, the bank aims to free up an additional $10 billion to $12 billion in annual lending capacity over the next decade to address climate change and other global crises, including pandemics, beyond its traditional mission of fighting poverty and supporting development.
The bank committed in December to dedicate 45% of its total lending for fiscal year 2025, which began July 1, to climate adaptation and mitigation.
The total climate finance amount for fiscal year 2025 will come from all parts of the World Bank Group, supporting projects ranging from cyclone shelters in Bangladesh to new electric rapid bus systems in Cairo, Egypt, and Dakar, Senegal, the World Bank said.
The International Bank for Reconstruction and Development, the leading lender to middle-income countries, and the International Development Association, which serves the poorest countries, have together provided $31 billion in climate finance, of which $10.3 billion was specifically earmarked for investments in adaptation and resilience.
The International Finance Corp, the private sector lender, provided $9.1 billion in long-term climate finance.
The Multilateral Investment Guarantee Agency, the bank’s arm that handles political risk insurance and credit enhancement, provided $2.5 billion in climate finance in the fiscal year.
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First publication: Sep 20, 2024 | 08:44 AM IST