The World Bank has set out changes to how it tackles climate finance, including committing to deliver 45pc of its annual financing to climate-related projects by 2025 — up from its previous goal for the timeframe of 35pc.
The bank is "putting to work more than $40bn per year — around $9bn more than the original target", its president Ajay Banga said. The institution was "ahead of schedule" on its 35pc goal, but wanted to "push further", he added.
The bank has also broadened the scope of its climate resilient debt clauses, it said today. The facility, which allows some countries to pause debt repayments in cases of natural disasters or climate-related catastrophes, so that funds can be directed towards emergency response measures, will now be available to 45 small islands and states. It will cover all existing loans in eligible countries, rather than just new loans, and countries will now be able to pause principal and interest payments, the bank said.
The first two days of the UN Cop 28 climate summit, which started yesterday in Dubai, have seen multiple finance pledges. Climate finance was expected to feature heavily at this year's Cop. The topic blocked talks in June this year, as developing countries called on developed countries to provide meaningful finance to address climate change. Developed and developing nations have called on multilateral development banks — such as the World Bank — to do more to deliver climate finance.
The bank will "detail a blueprint for slashing methane emissions, announce a roadmap for high integrity carbon markets… and outline efforts to deepen the collective impact of multilateral development banks" over the next few days at Cop 28, Banga said.
