Forty-four percent of the $97 billion in finance provided by the World Bank in FY24 went toward climate projects.
WASHINGTON: During the fiscal year 2024, which ran from July 1, 2023, to June 30, 2024, the World Bank Group provided a record $42.6 billion in climate finance. This funding supported initiatives to alleviate poverty on a livable world by funding cleaner energy, more resilient communities, and stronger economies.
The World Bank said in a press release that this represents a 10% increase in climate funding over the prior year.
The World Bank pledged at COP28 to raise its share of climate funding to 45% of total lending for FY25, which is scheduled to run from July 1, 2024, to June 30, 2025. Aiming to promote adaptation with half of our public sector climate funding (IBRD and IDA) and mitigation with the other half. The purpose of this goal is to demonstrate to the nations we work with that the World Bank Group is attentive to the adaptation issues they encounter,” the statement said.
There is certainly more to be accomplished, but all World Bank Group institutions are striving to advance climate financing as a common goal.
The International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) jointly contributed $31 billion in climate finance in fiscal year 2024 (FY24), including $10.3 billion designated especially for adaptation and resilience investments.
$9.1 billion was contributed to long-term climate funding by the private sector-focused International funding Corporation (IFC). In the meantime, $2.5 billion in climate funding was provided by the Multilateral Investment Guarantee Agency (MIGA), the World Bank Group’s political risk insurance and credit enhancement division.
Of the $97 billion in finance provided by the World Bank Group in FY24, 44% was allocated to climate projects.
The World Bank has helped build more than 900 new cyclone shelters and renovated another 900 in Bangladesh. Investments in erosion management, early warning systems, and coastal embankments have supplemented these efforts and helped save hundreds of thousands of people from flooding caused by storms.
The World Bank has promoted sustainable farming practices in the Mekong Delta of Vietnam, where 1.4 million households depend on rice cultivation, allowing farmers to produce rice of a higher caliber while also assisting in the reduction of methane emissions.
To lessen reliance on fossil fuels and cut emissions, fully electric Bus Rapid Transit (BRT) systems have been implemented in Dakar, Senegal, and Cairo, Egypt. Over its lifetime, Dakar’s BRT—the first in West Africa—is expected to reduce carbon dioxide emissions by 1.2 million tons. To lessen the pollution caused by vehicles, 100 electric buses have been introduced in Cairo, laying the groundwork for a larger fleet.
