The World Bank Group has disclosed that it committed the sum of $31.7 billion this financial year (FY2022) to help countries address climate change challenges.
The Washington D.C-based multilateral finance institution in a statement hoisted on its website on Thursday indicated that the amount represented a 19 percent increase over the $26.6 billion financing by it in 2021, thereby making the bank to be the largest multilateral financier of climate action in developing countries.
Speaking on the climate change funding support to the countries, the World Bank Group President, David Malpass, said: “In our last fiscal year ending June 2022, we provided a record $31.7 billion to countries, to identify and enable high-priority climate-related projects, as part of their development plans.
“We will continue providing solutions to pool funding from the global community for impactful and scalable projects, that reduce GreenHouse Gas (GHG) emissions, improve resilience, and enable the private sector”, the banker added.
According to the bank, financing for climate action in FY22, which covers July 1, 2021 to June 30, 2022, has reached 36 percent of its total financing, exceeding the target set in the Group’s Climate Change Action Plan for 2021-2025, to deploy an average of 35 percent of the institution’s financing in support of climate action.
A further analysis of the bank’s funding for climate change reflected that in FY2022, the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) jointly provided $26.2 billion in climate finance.
The development finance institution clarified that “nearly half of the money, which is $12.9 billion, specifically supported investments in adaptation and resilience”, adding that the IFC, its private sector arm, delivered an unprecedented $4.4 billion in climate finance and mobilised an additional $3.3 billion from other sources.
Also, it stated that the Multilateral Investment Guarantee Agency (MIGA), the World Bank Group’s political risk insurance and credit enhancement arm, delivered $1.1 billion in climate finance in the year under review.
The Washington D.C-based multilateral finance institution indicated that as part of its ongoing effort to help countries integrate climate and development objectives, it recently launched some Country Climate and Development Reports (CCDRs).
It stated that the reports were a new core diagnosis to help countries prioritise the most impactful actions that could reduce GHG emissions and boost adaptation.
