Under the new leadership of President Ajay Banga, who began his tenure last year with a commitment to reform the 80-year-old Washington-based institution, the development lender has aimed to enhance its climate financing efforts.
In December, the bank pledged to increase the share of its annual financing dedicated to climate change adaptation from 35% to 45%, starting with the fiscal year 2025, which commenced in July.
This fiscal year, the bank came close to meeting this target, announcing that approximately 44% of the World Bank Group’s total financing of $97 billion included a climate financing component.
This amount encompasses loans, as well as other financial instruments such as grants and guarantees, according to a World Bank official in an email to AFP.
The financing contributed to “supporting efforts to eradicate poverty on a habitable planet, investing in cleaner energy, more resilient communities, and stronger economies,” the Bank stated, noting that “there is more work to be done.”
The primary contributors were the International Development Association, the bank’s concessional lending arm, and the International Bank for Reconstruction and Development, which collectively provided $31 billion, according to the World Bank.
