September 19, 2024

The World Bank Group said on Thursday it delivered a record $42.6 billion in climate finance during fiscal 2024, a 10% increase over the $38.6 billion the prior year and close to its target of a 45% share of total financing devoted to climate projects.

The $4 billion increase in climate financing during the fiscal year ended June 30 shows progress towards the bank’s goals, but is well short of the trillions of dollars in additional resources needed annually to finance the clean energy transition in emerging market and developing countries.

World Bank President Ajay Banga has increased balance sheet leverage and taken other capital adequacy measures to squeeze out an additional $10 billion to $12 billion in annual lending capacity over 10 years to help tackle climate change and other global crises including pandemics in addition to its traditional anti-poverty and development mission.

The bank in December committed to devoting 45% of its total lending for fiscal 2025, which started on July 1, to support climate adaptation and mitigation.

The fiscal 2025 climate finance total comes from all parts of the World Bank Group, supporting projects from cyclone shelters in Bangladesh to new electric bus rapid transit systems in Cairo, Egypt and Dakar, Senegal, the World Bank said.

The International Bank for Reconstruction and Development, its main lending arm for middle-income countries, and the International Development Association, which serves the poorest countries, together delivered $31 billion in climate finance, of which $10.3 billion specifically supported investments in adaptation and resilience.

The International Finance Corp, the private sector lending arm, provided $9.1 billion in long-term climate finance. The Multilateral Investment Guarantee Agency, the bank’s political risk insurance and credit enhancement arm, delivered $2.5 billion in climate finance for the fiscal year.

REUTERS