The World Bank Announces Increased Funding for Climate Protection and Global Challenges

die The World Bank wants to give more loans to poor countries that want to Climate protection and deal with other cross-border problems. Funding commitments from several countries, including Germany, are expected to increase the size of the loan The World Bank increase by an additional 70 billion US dollars (nearly 66 billion euros) over the next ten years, as announced by the development bank in Washington, DC. “We have been working hard to develop these new financial tools that will increase our lending capacity, diversify grant resources and ultimately enable us to improve the lives of more people,” said Head World Bank chair Ajay Banga.

In addition to Germany, Italy, France, the USA, Great Britain and Japan, among others, have pledged additional funds. In total it is eleven billion US dollars. The Federal Ministry of Development announced that the new funding commitments would provide additional funds to the World Bank “to fight climate change, pandemics and other global actions.”

Climate change, conflict and pandemics

Germany had already committed 305 million euros in the form of hybrid capital or guarantees to the World Bank last fall. Hybrid capital is a special bond class that allows the World Bank itself to raise more money on the market. It “promotes how well the World Bank can achieve constructive multilateral cooperation even in these tense geopolitical times,” said Federal Development Minister Svenja Schulze (SPD).

The bank previously estimated that poorer countries will need an average of $2.4 trillion annually by 2030 to address “global challenges such as climate change, conflict and pandemics.” The additional money will be used to finance three credit instruments that will allow the World Bank to address “increased risks for common global challenges.”