The World Bank said it would allocate 28% of its investments for climate change projects, and it would consider global warming issues in all of its future spending.
The World Bank Group, a leading provider of financing and technical assistance to developing countries, on Thursday (April 7) adopted a new Climate Change Action Plan to “help countries deliver on their NDCs and sets ambitious targets for 2020 in high-impact areas, including clean energy, green transport, climate-smart agriculture, and urban resilience, as well as in mobilizing the private sector to expand climate investments in developing countries”.
Without further action, climate impacts could push an additional 100 million people into poverty by 2030, the report said.
In order to meet challenges and apportunities for development arising from climate change, the WBG intends to scale up climate action, integrate climate change across its operations, and work more closely with other actors and stakeholders.
The new plan reconfirms the commitment to increase the climate-related share of WBG portfolio from 21 to 28 percent by 2020, with total financing of potentially USD29 billion per year by 2020 (conditional on sustained aggregate lending volumes, access to concessional finance, and client demand). It would represent nearly a third of the USD100 billion per year commitment confirmed at COP21 and extended until 2025.
The group announced several targets to scale up concrete actions, such as mobilizing USD25 billion in private financing for clean energy, quadrupling funding for climate-resilient transport and bringing early warning systems for natural disasters to 100 million people by 2020. The plan specifies that the meeting the objectives will be dependent on client demand and that the targets will be adjusted over time.
(Image: Crescent Dunes Solar Energy Project, Tonopah, Nevada. Photo credit: Matt Hintsa on Flickr)