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

    Climate action is a vast opportunity for sustainable global development, with investment potential in the trillions of dollars and the ability to drive innovation and create green industries and new jobs. 

    Climate-smart finance is critical to fighting poverty and meeting development goals. 

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

    • The WBG along with other multilateral developments banks (MDBs) continues to make a strong contribution to the global climate challenge. Collectively, the MDBs increased their climate financing in developing countries and emerging economies to $35.2 billion in 2017 – including more than $13 billion from the WBG.
    • From fiscal year 2013-2017, the International Development Association (IDA), the World Bank’s fund for the poorest, provided on average $2 billion a year in concessional finance to help countries adapt to the effects of climate change and $1.7 billion a year to reduce emissions. 
    • The $8.3 billion Climate Investment Funds (CIF), now marking ten years of climate action, have helped 72 developing countries pilot low-emission and climate-resilient development through country-led programs and investments.

    The World Bank Group (WBG) is more committed than ever to helping countries meet the climate challenge. 

    • The WBG’s twin goals of ending extreme poverty and boosting shared prosperity cannot be achieved without tackling climate change.
    • More than 135 developing and middle-income countries have submitted national plans for climate action under the Paris Agreement – the Nationally Determined Contributions, or NDCs. 
    • The World Bank Group is actively working with countries to help them deliver on and exceed their Paris ambitions, including through financing, technical assistance, and knowledge sharing on the implementation of the NDCs.

    Last Updated: Aug 23, 2018

    • The WBG has committed to increasing climate financing to 28 percent of the Bank Group’s portfolio by 2020, in response to client demand. Currently, this target has been already exceeded and 32.1 percent of the Institution financing had climate co-benefits. This amounted to a record-setting $20.5 billion in climate-related finance delivered in the last fiscal year - the result of an institution-wide effort to mainstream climate considerations into all development projects.
    • The World Bank Group’s Climate Change Action Plan lays out concrete steps to meet that commitment. It 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.

    Last Updated: Aug 23, 2018

    • Between FY11 and FY18, the WBG committed over $100 billion dollars, an average of close to $12.6 billion a year, to more than 1400 climate-related projects that help countries adapt to a changing climate and mitigate the impacts of climate change.
    • In FY18, 32.1 percent of the World Bank Group financing had climate co-benefits – already exceeding the target set in 2015 that 28 percent of its lending volume would be climate-related by 2020. This amounted to a record-setting $20.5 billion in climate-related finance delivered - the result of an institution-wide effort to mainstream climate considerations into all development projects.
    • 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. 
    • Collectively, the MDBs increased their climate financing in developing countries and emerging economies to $35.2 billion in 2017. The WBG is one of the largest providers of finance for renewable energy and energy efficiency projects in developing and middle-income countries. Between FY2016 and FY2018, the World Bank provided more than $10 billion in commercial finance for clean energy, generating or integrating 18 gigawatts of additional renewable energy into electricity grids.
    • 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.
    • In FY18, the climate commitments of IFC - the main member of the World Bank Group focused on the private sector in emerging markets - amounted to 36 percent of IFC’s own account and mobilization. This translates to over $3.9 billion in own account climate-smart investments, and an additional $4.4 billion in core mobilization, or nearly $8.3 billion in total. Through these investments, IFC has developed expertise in key climate markets including solar, wind, energy storage, green buildings, energy efficiency, waste, and agriculture.
    • World Bank financing for developing countries to adapt and build resilience to climate change grew considerably – with $7.7 billion in adaptation investments in FY18 compared to $3.9 billion the previous year. Now, close to half (49 percent) of all World Bank climate finance is devoted to adaptation, demonstrating a commitment to focus as much on supporting countries to adapt to climate change as on mitigating future emissions.
    • Financing of $917 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 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 (CSP) complex expects to achieve over 500 megawatts (MW) 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. CSP will also ultimately help the country reduce its dependence on oil by about 2.5 million tons and reduce carbon emissions by 760,000 tons per year – which translates to a reduction of 17.5 million tons of carbon emissions over 25 years.
    • The World Bank is supporting India’s mission to increase solar generation to 100 GW by 2022 with $1 billion in lending. One example is support for the 750 MW Rewa Ultra Mega Solar Ltd. Project, which has doubled the solar capacity of the state of Madhya Pradesh and is one of the largest single-site solar plants in the world. The energy generated will help power metropolitan rail transportation in India’s capital city, New Delhi. The project is projected to save 1 million tons per year in greenhouse gas emissions, which is equivalent to taking 215,000 cars off the road every year.
    • 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.
    • In Jamaica, finance from the Climate Investment Funds 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
    • 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% 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.
    • Since 2000, flood and drought events have cumulatively affected more than 13 million people across Sri Lanka. In an effort to reduce the adverse impacts of these events, GFDRR, the World Bank, and the government of Sri Lanka developed the “Comprehensive Approach to Climate Risk Management” program. The $152 million initiative is working to make transport and school infrastructure more resilient to future weather events, benefiting 745,000 people. The program is further supported by a Development Policy Loan with Catastrophe Deferred Drawdown Option (Cat-DDO), providing up to $102 million in immediate liquidity in the event of an emergency.

    Last Updated: Jun 21, 2018

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Ferzina Banaji