Washington. The World Bank said Thursday that it provided a record $42.6 billion in climate finance during fiscal year 2024, a 10 percent increase from $38.6 billion the previous year and close to the goal of a 45 percent share of total financing dedicated to climate projects.
Why is it important?
World Bank President Ajay Banga has been under pressure from major shareholders, including the United States, to increase the lender’s climate financing ambitions and capacity.
The $4 billion increase in climate financing during the fiscal year that ended June 30 shows progress toward the bank’s goals, but falls far short of the trillions of dollars in additional resources needed to finance the transition to climate. clean energy.
Last year, the World Bank pledged to dedicate 45 percent of its total lending for fiscal year 2025, which began July 1, to support climate change adaptation and mitigation.
In figures
Total climate financing for the fiscal year supports projects ranging 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 provided $31 billion in climate finance.
The International Finance Corporation, 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, provided $2.5 billion in climate financing for the fiscal year.
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– 2024-09-27 16:44:35
