World Bank Group Delivers Record $42.6 Billion in Climate Finance

Record Climate Finance Delivery

The World Bank Group announced on Thursday that it had provided a record $42.6 billion in climate finance during fiscal 2024. This amount marked a 10% increase from the previous year’s $38.6 billion and was close to the target of allocating 45% of total financing to climate projects.

Progress Towards Goals

While the $4 billion increase in climate financing shows progress towards the bank’s goals, it falls short of the trillions of dollars needed annually to fund the clean energy transition in emerging market and developing countries. World Bank President Ajay Banga has implemented measures to increase lending capacity by $10 billion to $12 billion annually over 10 years to address climate change, pandemics, and other global crises.

Commitment to Climate Action

In December, the World Bank committed to allocating 45% of its total lending for fiscal 2025 to support climate adaptation and mitigation. The climate finance for fiscal 2025 includes projects such as cyclone shelters in Bangladesh and new electric bus rapid transit systems in Cairo, Egypt, and Dakar, Senegal.

Contributions from World Bank Group

The International Bank for Reconstruction and Development and the International Development Association delivered $31 billion in climate finance, with $10.3 billion specifically supporting adaptation and resilience investments. The International Finance Corp provided $9.1 billion in long-term climate finance, while the Multilateral Investment Guarantee Agency delivered $2.5 billion in climate finance for the fiscal year.