WASHINGTON, November 19, 2024—The World Bank today released the following statement on its climate finance accounting:
“The World Bank Group is by far the largest provider of climate finance to developing countries. Last year, 44 percent of our lending—$42.6 billion—went toward climate adaptation and mitigation. This is up 10 percent from the previous year and close to our COP28 commitment of 45 percent by the end of the current fiscal year.
When we approve a project, we systematically assess whether its activities will help reduce greenhouse gas emissions or directly address climate change vulnerabilities. We follow a strict methodology, shared by all multilateral development banks, to calculate the portion of our funding that counts as climate finance.
For the last year and a half, the World Bank has been working to become faster, simpler, and more impact-oriented. As part of that effort, we are finding new ways to enhance accountability, transparency, and ensure our projects drive real change. Our approach has been informed by many organizations such as Oxfam and the Center for Global Development, but we have more to do.
One area we are exploring is how to provide clearer information on the exact funds disbursed for climate initiatives. Among other ideas, we are considering calculating and publishing climate financing at the end of each project.
Another example is evaluating if we can share how much funding goes to specific components of our public sector operations, which would help external groups better understand our methodology.
Such improvements will take time but are important to help advance a fact-based conversation and prevent inaccurate analysis like the findings in the recent Oxfam report. Contrary to that report’s conclusions, the World Bank accounts for every dollar budgeted and disburses over 95% of the funds allocated.
Where a small amount of allocated funds are not deployed, undisbursed funds are repurposed for other development needs. Our lending benefits from strict oversight and independent audits in line with international standards to ensure all funds are used properly.”
