The World Bank Group recently announced a significant increase in its climate finance efforts. During the fiscal year 2024, the bank provided a record $42.6 billion for climate-related projects, surpassing the previous year’s figure by 10%. This achievement brings the bank closer to its target of allocating 45% of its total financing to climate projects.
While the increase in climate financing is a positive step towards the bank’s goals, it falls short of the trillions of dollars needed annually to support the clean energy transition in developing countries. The Bank has implemented measures to increase the bank’s lending capacity by $10 to $12 billion over the next decade.
For the fiscal year 2025, the World Bank has committed to dedicating 45% of its total lending to climate adaptation and mitigation. This includes projects such as cyclone shelters in Bangladesh and electric bus rapid transit systems in Cairo, Egypt, and Dakar, Senegal.
The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) together provided $31 billion in climate finance, including $10.3 billion for adaptation and resilience.
The International Finance Corporation (IFC) contributed $9.1 billion, and the Multilateral Investment Guarantee Agency (MIGA) delivered $2.5 billion in climate finance.
Reference- Reuters article, Academy of Entrepreneurship Journal, World Bank website, Economic Times