• 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.

    Last Updated: Apr 02, 2019

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

    • In December 2018, the World Bank Group announced a new set of climate targets for 2021-2025, doubling its current 5-year investments to around $200 billion in support for countries to take ambitious climate action. The new targets build on the World Bank Group’s 2016 Climate Change Action Plan
    • The World Bank Group recently launched a new Action Plan on Climate Change Adaptation and Resilience. Under the plan, the World Bank Group will ramp up direct adaptation climate finance to reach $50 billion over FY21–25. This financing level—an average of $10 billion a year—is more than double what was achieved during FY15-18. The Action Plan forms part of the World Bank Group’s 2025 Targets.
    • 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.

    Last Updated: Apr 02, 2019

  • - 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 140 climate investment projects in 40 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. Since 2010, IFC has issued $7.6 billion across 111 green bonds in thirteen currencies.
    • The $8.3 billion Climate Investment Funds (CIF) has recently marked ten years of climate action, working in 72 countries. Among CIF’s more than 300 projects is the $80 million Dedicated Grant Mechanism for Indigenous Peoples and Local Communities, a one-of-a-kind program designed and led by representatives of Indigenous peoples and local communities to enhance their capacity to engage in and contribute to sustainable forestry dialogue and actions.
    • As part of a $775 million partnership through its Clean Technology Fund (CTF), CIF is helping India expand its rooftop solar industry. In less than a year, the program has enabled close to 500 MW of new rooftop solar capacity. It is estimated that rooftop solar alone can save almost 2 billion tons of CO2 emissions and lead to nearly 50,000 jobs.
    • With the support of the World Bank, CIF, the African Development Bank, and other partners, Morocco launched the Noor Ouarzazate Concentrated Solar Power (CSP) complex. Noor’s output of 580 megawatts provides clean energy to 2 million Moroccans and accounts for one-fourth of Morocco’s solar energy target of 2 GW by 2020.
    • 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.
    • 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 13 make up part of the 32 solar power plants that 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.
    • Mozambique and DRC ­­– two African countries with globally significant forest resources – signed landmark agreements with the World Bank that reward community efforts to reduce carbon emissions by tackling deforestation and forest degradation (REDD+). These agreements, known as Emission Reductions Payment Agreements, unlock performance-based payments of up to US$50 million for Mozambique and up to US$55 million for DRC. The payments will come from the Forest Carbon Partnership Facility Carbon Fund, whose Secretariat is hosted by the World Bank. Several other countries are expected to finalize similar agreements with the Bank in the coming months.
    • 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 tripled from 2017 to 2019. 

    Last Updated: Apr 02, 2019

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Ferzina Banaji