World Bank Group to raise US$200 bil to fight climate change

World Bank

World Bank

The World Bank Group has announced plans to double its investments in the fight against climate change to around $200 billion for more than five years.

The world temperature is constantly rising due to climate change.

This announcement comes as 200 countries assembled for the United Nations' COP24, which began on Sunday in Poland.

In a statement, WB said the breakdown of the $200 billion would comprise "approximately $100 billion in direct finance from the World Bank".

"Climate change is already having a disastrous impact on people right around the world and we are nearing the point of no return", said Ban.

Talking to media, John Roome, World Bank senior director for climate change warned, "If we don't reduce emissions and build adaptation now, we'll have 100 million more people living in poverty by 2030".

In addition, the measures will consist notably in supporting better forecasting, early warning systems and climate information systems to better prepare 250 million residents of 30 developing countries to climate risks.

The new World Bank funds would "help to build resilience, make us safer, and improve lives", she said.

This will nearly double its current climate targets for years 2021-2025 because the World Bank, which provides financial, advisory and technical assistance to developing countries, recognizes the mounting impacts climate change has on the lives and livelihoods of the global economy.

The plan also represents significantly ramped up ambition from the World Bank Group, sending an important signal to the wider global community to do the same.

It also revealed that the World Bank will develop a new rating system to track and incentivise global progress.

"There are literally trillions of dollars of opportunities for the private sector to invest in projects that will help save the planet", IFC CEO Philippe Le Houérou was quoted in the statement as saying. "Our job is to go out and proactively find those opportunities, use our de-risking tools, and crowd in private sector investment".

It will also support as many as 20 countries to implement and update Nationally Determined Contributions and increase engagement with Ministries of Finance in the design and implementation of transformative low-carbon policies. One-third of the remaining funding will be taken by two World Bank Group agencies while the remaining will be managed by the private capital "mobilized by the World Bank Group".

It has also been reported that a large portion of the climate action funding is kept aside for greenhouse gas emission reduction, through the development of renewable energy strategies.

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