WASHINGTON, United States (AFP) — The World Bank has announced a landmark achievement in climate financing, delivering a record-breaking $42.6 billion for the fiscal year 2024. This represents a 10 percent increase from the previous year, marking a significant leap in the institution’s commitment to environmental sustainability.
Under the leadership of President Ajay Banga, who assumed office last year with a promise to reform the 80-year-old institution, the World Bank has made substantial strides in enhancing its climate financing efforts. Banga’s vision has focused on bolstering the Bank’s role in addressing climate change while supporting global development goals.
In December, the World Bank pledged to increase the share of its total financing dedicated to climate change adaptation from 35 percent to 45 percent starting in the fiscal year 2025, which commenced in July. The Bank has made impressive progress toward this target, with approximately 44 percent of its total financing for the fiscal year, amounting to $97 billion, allocated towards climate-related initiatives.
This record climate financing includes a range of financial instruments, such as loans, grants, and guarantees. According to a World Bank official, these investments are aimed at supporting efforts to eradicate poverty while ensuring a sustainable and livable planet. The Bank’s initiatives focus on investing in cleaner energy, building more resilient communities, and fostering stronger economies.
Despite this significant progress, the World Bank acknowledged that further efforts are needed. “There is more to do,” the Bank emphasized in its statement, reflecting its ongoing commitment to addressing climate challenges and supporting global development.
Each of the World Bank Group’s institutions has played a role in achieving this milestone, underscoring a collective effort towards a more sustainable future.
