The World Bank vows to boost its funding for climate change initiatives, according to its statement released Thursday.
The biggest public finance provider in the world has previously attracted criticism for backing the construction of high-carbon infrastructure, mostly in the form of coal-fired power stations. This new move is deemed a “fundamental shift” in the global poverty alleviation program it pursues.
The World Bank said it will allot 28 percent of its own investments on climate change projects, with future spendings taking global warming into account.
Last year at COP21 in Paris, development banks like the World Bank – whose “ambitious” targets are laid out in a Climate Change Action Plan also revealed Thursday – were deemed instrumental in financing poor countries to help enable them to cut their carbon emissions as well as adapt to climate change effects.
“Following the Paris climate agreement, we must now take bold action to protect our planet for future generations,” says its president Jim Yong Kim, harping on the need to help nations transition to renewable sources of energy, produce green transport, and build livable, sustainable urban cities.
The World Bank will assist countries in implementing their national climate plans, he adds in the statement.
Speaking to journalists, John Roome, World Bank senior director for climate change, dubbed the move a “fundamental shift” for the organization. He also warned against the threat of climate change to push 100 million more individuals into poverty in the next 15 years.
The World Bank aims to reserve $25 billion in the next five years for commercial financing of clean energy, while its member International Finance Corporation (IFC) will raise its climate investments from $2.2 billion to $3.5 billion a year as well as leverage an added $13 billion annually in private financing by 2020.
The bank will help fund 30 gigawatts of renewable energy to power 150 million homes in developing nations, and provide early warning systems to 100 million individuals. It will also craft programs for climate-smart agricultural systems – which consume less energy and water while retaining soil fertility – for at least 40 nations.
Other measures include designing sustainable forest management for 50 nations and investing at least $1 billion for energy efficiency and resilient infrastructure building by 2020.
The pipeline of projects includes areas such as rooftop solar and increased solar distribution in Sub-Saharan Africa.
All candidate projects for funding will be evaluated for climate vulnerability, including in education, health, and other development segments.
