The World Bank has announced a historic achievement in its climate financing efforts, delivering a record $42.6 billion in support for climate initiatives in the 2024 financial year. This marks a notable 10 percent increase compared to the previous year, underscoring the institution’s intensified focus on environmental sustainability.
Under the leadership of new President Ajay Banga, who assumed the role last year, the World Bank has significantly elevated its commitment to addressing climate change. Banga’s tenure has been marked by a strong emphasis on reforming the 80-year-old institution to better align with contemporary global challenges.
As part of its ongoing climate strategy, the World Bank had previously pledged to raise the percentage of its financing dedicated to climate change adaptation from 35 percent to 45 percent beginning in the 2025 fiscal year, which commenced in July. Remarkably, the institution has come close to this goal ahead of schedule. For the fiscal year 2024, approximately 44 percent of the World Bank Group’s total financing, amounting to $97 billion, was directed towards climate-related projects.
This financing encompasses a broad range of financial instruments, including loans, grants, and guarantees, all aimed at bolstering efforts to combat climate change. According to a World Bank spokesperson, the funding has been instrumental in advancing cleaner energy solutions, enhancing community resilience, and strengthening economic stability.
The World Bank’s efforts contribute significantly to global goals of poverty alleviation and environmental sustainability, reflecting the organization’s commitment to fostering a livable planet for future generations.
Despite these advancements, the World Bank acknowledges that there is still much work to be done. The institution remains dedicated to expanding its climate financing initiatives and enhancing its support for global climate action.
The announcement highlights a pivotal moment for the World Bank as it continues to evolve and adapt its strategies to meet the pressing demands of climate change and development.
