In a press release copied to ghanabusinessnews.com, the Bank Group says the financing is support for countries to take ambitious climate action.
The announcement comes just as the 24th Conference of Parties to the United Nations Framework Convention on Climate Change (COP24), begins in Katowice, Poland.
The new plan significantly boosts support for adaptation and resilience, recognizing mounting climate change impacts on lives and livelihoods, especially in the world’s poorest countries. The plan also represents significantly ramped up ambition from the Group, sending an important signal to the wider global community to do the same, the release says.
According to the release, the $200 billion across the Group is made up of approximately $100 billion in direct finance from the World Bank (IBRD/IDA), and approximately $100 billion of combined direct finance from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) and private capital mobilized by the World Bank Group.
It notes that a key priority is boosting support for climate adaptation, recognizing that millions of people across the world are already facing the severe consequences of more extreme weather events.
The release indicates that by ramping up direct adaptation finance to reach around $50 billion over Financial Year 21-25, the World Bank will, for the first time, give this equal emphasis alongside investments that reduce emissions.
The new financing will ensure that adaptation is undertaken in a systematic fashion, and the Bank will develop a new rating system to track and incentivize global progress, the release said, adding that actions will include supporting higher-quality forecasts, early warning systems and climate information services to better prepare 250 million people in 30 developing countries for climate risks.
In addition, the expected investments will build more climate-responsive social protection systems in 40 countries, and finance climate smart agriculture investments in 20 countries, it says.
The World Bank Group President, Jim Yong Kim was quoted as saying: “Climate change is an existential threat to the world’s poorest and most vulnerable. These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change.”
“There are literally trillions of dollars of opportunities for the private sector to invest in projects that will help save the planet. Our job is to go out and proactively find those opportunities, use our de-risking tools, and crowd in private sector investment. We will do much more in helping finance renewable energy, green buildings, climate-smart agribusiness, urban transportation, water, and urban waste management,” the CEO of IFC, Philippe Le Houérou said.
The World Bank Chief Executive Officer, Kristalina Georgieva said, “People are losing their lives and livelihoods because of the disastrous effects of climate change. We must fight the causes, but also adapt to the consequences that are often most dramatic for the world’s poorest people,” adding, “This is why we at the World Bank commit to step up climate finance to $100 billion, half of which will go to build better adapted homes, schools and infrastructure, and invest in climate smart agriculture, sustainable water management and responsive social safety nets.”
By Emmanuel K. Dogbevi