The WBG is working on innovative solutions to help countries meet their climate commitments.
- In 2018, the WBG provided a record-breaking $20.5 billion in finance for climate action: doubling our delivery from the year before the Paris Agreement was adopted and meeting our 2020 climate finance targets two years ahead of schedule.
- 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.
- Climate financing by the world’s six largest MDBs rose to a seven-year high of $35 billion in 2017, up 28 percent on the previous year, according to the latest 2017 Joint Report on Multilateral Development Banks’ Climate Finance.
- In FY18, the climate commitments of IFC 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.
- 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. In FY18 IFC’s total issuance was $1.8 billion through 32 bonds in 9 currencies. As of the end of FY18, IFC Treasury has issued $7.6 billion in green bonds.
- 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.
- In a major announcement at the One Planet Summit, the World Bank Group committed $1 billion for a new global program to accelerate investments in battery storage for energy systems in developing and middle-income countries. The program is expected to help these countries ramp up their use of renewables – particularly wind and solar power – improve energy security, increase grid stability and expand access to electricity.
- In Bangladesh, the World Bank supports the largest off-grid program in the world, powering 4.2 million households through 1.4 million solar home systems, 1,000 solar irrigation pumps, and 17 solar-based mini-grids. More than 18.5 million people in rural areas now have reliable access to solar-powered electricity through this program, which has created 70,000 jobs.
- In December 2017, the WBG announced it would no longer finance upstream oil and gas investments after 2019. The WBG will continue to provide technical assistance that helps client countries strengthen the transparency, governance, institutional capacity and regulatory environment of their energy sectors – including in oil and gas.
- A $480m IBRD renewable energy guarantee is helping mobilize $3.2bn in investment in the Argentine renewable energy sector. The project is expected to reduce emissions, air pollution and fossil fuel use, while ensuring a more secure energy supply. The RenovAr renewable auctions, supported by this guarantee, are bringing in private investors at competitive prices lower than the average cost of electricity generation and decreasing with each round. This will help Argentina benefit from its abundant renewable resources and could ultimately help it achieve its target to produce 20 percent of its electricity from renewable sources by 2025.
- With the World Bank’s support, Indonesia is planning a new Geothermal Risk Mitigation Facility to develop more than 1 GW of new geothermal capacity. The facility is expected to help mobilize several billion dollars in private sector funding, unlocking investments through risk mitigation for exploration and early production drilling. Ultimately, the facility could help Indonesia reach its target of increasing the share of new and renewable energy in its primary energy mix to 23 percent by 2025, including an overall addition of 5.8 GW of geothermal capacity -- a clean alternative to coal-fired power generation in a country where 30 million people still lack access to modern and reliable electricity.
- Through the Scaling Solar program, the World Bank Group is helping sub-Saharan African countries – including Zambia, Senegal, Madagascar, and Ethiopia – develop utility-scale solar power quickly and affordably. Scaling Solar brings together a suite of World Bank Group services under a single engagement to help create viable markets for solar power in each country. This “one-stop shop” aims to make privately funded grid-connected solar projects operational within two years at competitive rates. On February 21, 2017, Zambia’s Industrial Development Corporation (IDC) signed an agreement with IFC to develop up to 500MW of clean, renewable energy through two to four projects.
- In FY18 IFC arranged for $2.5 billion in renewable energy generation and component manufacturing, including $926 million of own account investments and $1.6 billion in core mobilization.
- As part of continuing efforts to work upstream, IFC has developed a roadmap for Côte d’Ivoire to achieve its 42 percent renewable energy commitment under the Paris Agreement.
Adaptation and Resilience
- 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.
- In São Tomé and Príncipe, the Global Facility for Disaster Reduction and Recovery (GFDRR) is supporting the government’s efforts to increase its adaptive capacity against threats like coastal erosion and sea level rise through activities such as high-resolution surface modeling for risk assessments, and enhancing capacity for resilience planning through grey and green infrastructure. These engagements are part of a large regional effort supported by the World Bank and the Global Environment Facility (GEF) through the $200 million West Africa Coastal Areas Management Program (WACA).
- While Africa accounts for only 4 percent of global greenhouse gas emissions, the continent is most vulnerable to the impacts of climate change and disasters. Since 2015, the World Bank Group, the Global Facility for Disaster Reduction and Recovery, and partners have been working to improve hydromet services in 15 African countries and four regional climate centers through the Africa Hydromet Program. The program, which envisages an estimated $600 million in investment, will benefit more than 100 million people over 8 years through modernized hydrological and meteorological services, stronger early warning and response systems, and facilitating knowledge exchange.
- The World Bank is working with its partners to help develop a new intelligent transport system for Dakar, Senegal aimed at moving 300,000 passengers per day. The Dakar Bus Rapid Transit (BRT) Pilot Project will improve travel conditions and reduce by half the average rush hour in-vehicle travel time by public transport. It combines contributions from the World Bank and other development partners and an expected financing of more than $50 million from the private sector through a PPP structure. The BRT project also lays the foundation for technology upgrades. Senegal's NDC lists the BRT as central to reducing the country’s transport-related carbon emissions. The World Bank supports this project with $300 million in financing from the International Development Association.
- In China, the $313 million Integrated Modern Agriculture Development project supports the adoption of improved irrigation systems and other climate-smart agricultural practices in six provinces, helping about 380,000 rural households become more resilient to climate change.
- In Uruguay, a World Bank-financed project is helping roll out climate-smart farming and livestock practices deploying satellite technology, to curb erosion and increase carbon sequestration.
Forests and Landscapes
- Since the adoption of the Forest Action Plan in 2016, World Bank commitments on forests have increased from $1.8 billion (FY16) to $2.3 billion (FY18), including investments and programs to preserve forests and reduce greenhouse gas emissions from the land use sector.
- 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 Mozambique, the Integrated Landscape Program has leveraged almost $200 million to support sustainable forest management and land use from multiple private and public sources, combining International Development Association (IDA), Global Environment Facility (GEF), climate finance from the Forest Carbon Partnership Facility (FCPF) and the Forest Investment Program (FIP) and private investments together with national resources.
- The World Bank’s work on urban development has been instrumental in advocating for addressing climate change issues during COP21/22/23 and the One Planet Summit. In recent years, the World Bank has worked in cities and towns across over 140 countries, investing $5.3 billion during fiscal year 2018 in disaster risk management.
- Since December 2017, through the City Resilience Program, the WBG has engaged over 50 cities to help them integrate climate resilience early on into their development planning. The WBG is also transforming the way we do business, and helping these cities to mobilize the additional capital required for key strategic investments.
- The City Resilience Program had already identified transactions in 25 cities by September and aims to engage another 45 cities over the next year.
- Urban resilience goes hand in hand with environmental sustainability. The World Bank’s Global Platform for Sustainable Cities works with mayors in developing countries to transform cities into inclusive and resilient hubs of growth, as part of the Global Environment Facility (GEF)’s Sustainable Cities program that is active in 27 cities and 11 countries, and will leverage $1.5 billion over five years.
- As part of its focus on cities, IFC’s EDGE (Excellence in Design for Greater Efficiencies) Green Building Market Transformation Program stimulates demand for green buildings and boosts the capacity of developers and banks to build and finance environmentally friendly construction. IFC’s total cumulative commitments for green buildings have now surpassed three billion dollars, including own account investments and mobilized financing. In FY18 IFC committed $1.1 billion of own-account in green buildings, in affordable homes, hospitals and retail buildings, mobilizing an additional $260 million for a total of $1.4 billion.
- Officially launched at COP21, the Carbon Pricing Leadership Coalition (CPLC), an initiative that WBG helps convene and support, brings together leaders across national and sub-national governments, the private sector, and civil society with the goal of putting effective carbon-pricing policies that maintain competitiveness, create jobs, encourage innovation and deliver meaningful emission reductions.
- Working towards building a repository of global experience on carbon pricing policy design and implementation, the CPLC has produced 6 executive briefs that synthesize the latest analysis on key issues, including use of revenues, the case for aligning carbon prices and other policies, carbon pricing in the maritime shipping and banking sector and more. In 2017, the Coalition also supported the report from the High-Level Commission on Carbon Prices.
- CPLC supports the Carbon Pricing Dashboard, an interactive online platform that provides up-to-date information on existing and emerging carbon pricing initiatives around the world.
- Since launching, the Coalition has convened over 40 dialogues, workshops and meetings that bring stakeholders to work towards the broadening, deepening and converging of carbon pricing initiatives around the world.
- Since 2010, the Partnership for Market Readiness (PMR) has been a forum for collective innovation and action and a fund to support capacity building to scale up climate change mitigation. Milestones Reached Since Inception:
- 36 national and subnational jurisdictions, and the European Commission
- 19 implementing country participants and 9 technical partners
- 13 contributing participants
- $127 million in total capitalization
- 30+ technical notes, country papers, and other publications
- 50+ knowledge exchanges hosted
- The Connect4Climate (C4C) multi-donor trust fund aims to accelerate climate action by connecting over 500 partners through a global climate communications program. C4C engages diverse audiences, and young people especially, and targets influential industries such as film, fashion, music and sport to popularize climate action.
- In 2017, C4C led the Uniting4Climate communications campaign for COP23 aimed at reaching a global audience, including through a historical first live broadcast from Fiji, to highlight the urgency and unity need for climate action.
- C4C has developed Digital Media Zones to message climate action through innovative digital and multi-media communications and facilitated high-profile events, including IPCC’s 30th anniversary celebration in Bologna.
- C4C’s feature documentary Youth Unstoppable premiered in 2018 aiming to energize the global youth climate movement through high-level screenings and engagements.
- The X-Ray Fashion Virtual Reality installation, winner of C4C’s 2017 youth competition, premiered at the Venice Film Festival, and highlights the social, environmental and climate impacts of the fashion industry.
Last Updated: Oct 02, 2018