World Bank Boosts Funding for Climate Projects in Latest Economic Update
The World Bank has announced a new financing package aimed at helping people in developing countries better withstand the destruction caused by climate change. This announcement was made at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28).
In the statement, it was revealed that the bank allocated 45 percent of its annual financing to climate-related projects for the fiscal year lasting from July 1, 2024, to June 30, 2025. The World Bank stated that it is committed to doing more faster to combat climate change.
The Bank has set a goal of reaching an average of 35 percent in 2021 by 2025 and has been ahead of the program with an average of 36.3 percent since July 2022.
World Bank’s projects will focus on increasing the resilience and adaptation of those most affected by climate change, as well as protecting ecosystems and biodiversity to protect the health of people and the planet. The Bank will continue to assist in adaptation efforts for countries affected by climate shocks and in reducing greenhouse gases that contribute to climate change.
World Bank President Ajay Banga and International Monetary Fund (IMF) President Kristalina Georgieva attended the interview within the scope of COP28. Banga said that donor countries have already made 420 million commitments regarding the Loss Damage Fund, which the World Bank will host temporarily for four years. Banga emphasized that these commitments at the early stage are a good sign for the future of the fund.
Georgieva noted that although low-carbon investments should increase to approximately 5 trillion dollars a year by 2050, it is possible considering the world economy, which is over 100 trillion dollars and continues to grow. She also stated that the IMF supports the carbon price, as it will be an incentive to accelerate decarbonization.
