• The financing required for an orderly transition to a low carbon, resilient global economy must be counted in the trillions, not billions.  

    • Significant investment in infrastructure is needed over the next 15 years - around US$90 trillion by 2030 – but it does not need to cost much more to ensure that this new infrastructure is compatible with climate goals.

    Climate action offers a major opportunity to ensure sustainable global development and boost economic growth. It is already delivering real results in terms of new jobs, economic savings, competitiveness and market opportunities, and improved wellbeing for people worldwide with even greater investment, innovation, and growth potential ahead.

    Concessional climate finance is critical to supporting developing countries to build resilience to worsening climate impacts and to catalyzing private sector climate investment.

    lastupdated: Oct 02, 2018

  • The WBG is working on innovative solutions to help countries meet their climate commitments.

    • The World Bank Group’s Climate Change Action Plan  includes ambitious targets to be met by 2020, including helping client countries add 30 gigawatts of renewable energy, put in place early warning systems for 100 million people, and develop climate-smart agriculture investment plans for at least 40 countries.
    • Climate change is a key priority for the International Development Association (IDA), the World Bank’s fund for the poorest, and helps countries cope with climate change by bringing new solutions—such as better weather data and forecasting, drought-resistant crops, climate-resilient roads, disaster insurance, and cyclone-resistant houses and early warning systems.
    • The WBG is working together with the other multilateral development banks (MDBs) on common approaches to monitor and track their climate finance flows to client countries, as they increase their climate financing in mitigation and adaptation. The MDBs are continuing to align their financial flows with the Paris Agreement, supporting the implementation of the NDCs and facilitating activities that transition development towards low greenhouse gas emissions and climate resilient development.
    • In partnership with the UN, the WBG has announced a new platform for climate action, Invest4Climate, designed to bring together national governments, financial institutions, investors, philanthropies, and multilateral banks to support transformational climate investments in developing countries.

    lastupdated: Oct 02, 2018

  • - This is the result of an institution-wide effort to mainstream climate considerations into all development projects.

    - In 2017, the WBG leveraged $8.6 billion of private finance: working with the private sector is a vital part of driving climate action.

    • Also in 2018, 70 percent of WB projects include climate co-benefits, up from 37 percent just two years ago. Across WB projects, finance for adaptation projects reached almost the same level as finance for mitigation projects in 2018.
    • In FY18 the International Development Association (IDA), the World Bank’s fund for the poorest, provided more than $6.8 billion in climate-related financing to more than 134 projects. 
    • In FY18 IFC’s total own account climate-related investments were $3.9 billion, covering over 147 climate investment projects in 41 countries, accounting for 36 percent of all own account and mobilization volume. IFC mobilized an additional $4.5 billion from other investors, reflecting a growing appreciation that climate-smart agriculture, green buildings, smart cities, clean energy, green bonds represent areas of opportunity for investing.
    • The World Bank and IFC are among the world’s largest issuers of green bonds. As of March 2018, the World Bank had issued a total of 217 green bonds worth over $10 billion and IFC had issued a total of 103 green bonds worth over $7.25 billion.
    • The $8.3 billion Climate Investment Funds (CIF) are now marking ten years of climate action, working in 72 countries. For instance, the $80 million Dedicated Grant Mechanism for Indigenous Peoples and Local Communities is a one-of-a-kind program designed and led by representatives of Indigenous peoples and local communities in 13 countries to enhance their capacity to engage in and contribute to sustainable forestry dialogue and actions.
    • Financing of over $950 million from the CIF’s Clean Technology Fund (CTF) is driving global investments in concentrated solar power that are expected to contribute more than a fifth of current global capacity.
    • With the support of the World Bank, the Climate Investment Funds (CIF), and other partners, Morocco launched its first utility-scale solar energy complex -- a critical step in the Moroccan Solar Energy Program. The Noor-Ouarzazate Concentrated Solar Power complex expects to achieve over 500 megawatts of installed capacity, providing power to more than 1 million Moroccans. It is also expected to help Morocco reach its goal to install 2 GW of solar power in the country and derive 42 percent of all its electricity through renewable sources by 2020, reducing carbon emissions by 760,000 tons per year.
    • In Jamaica, finance from the Climate Investment Funds (CIF) is helping to improve climate data and information management. The ambition is to make it more accurate, timely, wider in coverage and easier to access and use by coastal communities, particularly farmers and fishermen. The funding contributes to early warning systems, improved equipment and observations – all of which lead to better forecasting.
    • Collectively, the MDBs increased their climate financing in developing countries and emerging economies to $35.2 billion in 2017.
    • By finalizing a landmark $653 million debt package in October 2017 to finance the construction of 13 solar power plants in Egypt’s Benban Solar Park, IFC is helping build the largest solar installation in the world. The plants are expected to generate 752 megawatts of electricity for over 350,000 residential customers and help avoid 2 million tons of GHG emissions annually. The project was developed under Egypt’s second round of Solar Feed-in-Tariff program and also received $210 million in political risk guarantees by the Multilateral Investment Guarantee Agency, IFC’s sister organization.
    • In March 2018, a $20 million grant was signed by Colombia’s President and the World Bank to help farmers in Colombia’s Orinoquía region sustainably increase agricultural production, including by planting trees, rotating livestock grazing and adopting climate-smart land practices. The program supported by the BioCarbon Fund Initiative for Sustainable Forest Landscapes aims to improve livelihoods, the economy, and the environment, including protecting the region’s precious forests, water sources, and biodiversity.
    • In Rwanda, private company Inyenyeri is using results-based carbon finance to mobilize private finance to scale up clean cooking and reduce greenhouse gas emissions. It provides rural households with biomass fuel pellets for clean gasifying cookstoves, a solution that delivers climate, environmental, and health benefits and frees up time for women and children. With the support of the World Bank’s Carbon Initiative for Development, Inyenyeri’s customer base has grown by 70 percent and a new pellet factory will allow it to reach up to 25,000 households by the end of 2018. 
    • Brazil’s second largest public bank, Caixa Econômica Federal, has developed a program to promote private sector participation in the solid waste management sector.  By bringing in much needed investment, the program has collected and flared over 150 million cubic meters of methane in landfills, the equivalent of over 3 million tons of carbon dioxide, reaching its target of reduced greenhouse gas emissions several years ahead of schedule and generating carbon credits that it sells to the World Bank’s Carbon Partnership Facility.

    lastupdated: Oct 02, 2018


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