World Bank Group gives over $83b in climate finance – Malpass
The risks of climate change are still staring the world, changing weather patterns, impact on flora and fauna, and with the outbreak of the COVID-19 pandemic and it’s impacts, the global economy is predicted to decline.
In response to climate impacts, the World Bank Group says it would increase climate finance in the next five years.
Its President David Malpass, has said the world has a historic opportunity and necessity to change course – to overcome the rising dangers of hunger, social division, conflict, violence and climate change and promised the World Bank Group will work with all stakeholders to address these challenges head on and support our clients to unlock the benefits of green, resilient and inclusive development.
In a speech, the President of the Bank, David Malpass said the Bank has been instrumental in helping countries address climate change: including delivering over $83 billion in climate finance over the past five years and reaching the highest level in a single year in 2020 at $21.4 billion.
“Through this plan, we will be doing more in terms of both dollars and impact,” he added.
Malpass indicated that 35 per cent of the World Bank Group’s financing will have climate co-benefits, on average, over the next five years; and 50 per cent of World Bank – IBRD and IDA – climate financing will support adaptation and resilience. This, he said represents a big step up from the 26 per cent achieved on average in FY16-20 and an even bigger step up in dollar terms as the Bank Group’s total financing has also expanded.
He notes further that the Bank will be focusing on climate results and impact: “We will focus on measuring results and achieving impact, through a greater focus on greenhouse gas emissions reduction, adaptation and resilience goals, supported by new metrics,” he said.
On improving and expanding climate diagnostics: He said the Bank will build a strong analytical base at the global and country level, including introducing new Country Climate and Development Reports that will support preparation and implementation of Nationally Determined Contributions (NDCs) and Long- Term Strategies (LTSs), and which will feed in to all WBG Country Partnership Frameworks.
According to him, the Bank will support transformative investments in key systems that contribute the most to emissions and have the greatest climate vulnerabilities: for example, energy, food systems, transport, and manufacturing in the pursuit of reducing emissions and climate vulnerabilities in key systems.
On the matter of transition out of coal: Malpass said the Bank will significantly increase support for the transition away from coal in client countries that request assistance.
“Importantly, we will seek to mobilize the further large-scale resources to support this. One example is the jobs and skills transition for people working in the coal sector. Another is helping countries replace coal with affordable, reliable and cleaner alternatives as they expand electricity access,” he said.
He added that the Bank Group is committed to aligning its financing flows with the objectives of the Paris Agreement.
“For the World Bank, we plan to align all new operations by July 1, 2023. For IFC and MIGA, 85 per cent of new operations will be aligned by July 1, 2023 and 100 pee cent of these by July 1, 2025,” he said.
By Emmanuel K. Dogbevi