World Bank Provides $42.6 Bn Climate Finance

Highlights :

• World Bank reported a 10% increase in climate finance compared to the previous year
• At COP28, the World Bank Group committed to increasing its climate finance to 45% of total lending for FY25, which runs from July 1, 2024, through June 30, 2025

Fiscal Year 2024: World Bank Provides $42.6 Bn Climate Finance

The World Bank Group delivered a record $42.6 billion in climate finance in fiscal year 2024—from July 1, 2023, to June 30, 2024, according to its ‘Climate Finance Fiscal Year 2024 Snapshot’. This is a 10% increase in climate finance compared to the previous year.

At COP28, the World Bank Group committed to increasing its climate finance to 45% of total lending for FY25, which runs from July 1, 2024, through June 30, 2025. At the same time, setting a goal for half of its public sector climate financing – IBRD and International Development Association (IDA) – to support adaptation and half for mitigation. This goal is intended to send a signal to the countries it serves that the World Bank Group is focused on the adaptation challenges they face.

• IBRD and IDA together delivered $31 billion in FY24 in climate finance, of which $10.3 billion specifically supported investments in adaptation and resilience.
• IFC, the private sector arm of the World Bank Group, delivered $9.1 billion in long-term climate finance.
• MIGA, the World Bank Group’s political risk insurance and credit enhancement arm, delivered $2.5 billion in climate finance.
• Taken together, World Bank Group climate financing was 44% of total financing in FY24, which reached $97 billion.

Previous examples of climate projects include:

• Building over 900 new cyclone shelters and rehabilitating 900 more in Bangladesh, as well as supporting the country by constructing coastal embankments, enhancing early warning systems, and investing in erosion control to protect hundreds of thousands of people from storm flooding.
• Reducing methane emissions while helping farmers adopt sustainable practices to produce higher-quality rice in Vietnam’s Mekong Delta, home to 1.4 million rice-farming households.
• In Dakar, Senegal, and Cairo, Egypt, fully electric Bus Rapid Transit (BRT) systems are helping to reduce reliance on fossil fuels and cut emissions. Dakar’s BRT, the first in West Africa, is projected to reduce 1.2 million tons of carbon dioxide over its lifetime, while Cairo’s introduction of 100 electric buses lays the groundwork for a larger fleet to further decrease vehicle-related pollution.

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