The World Bank Group on Friday announced its new Climate Change Action Plan aiming to provide record levels of climate financing to developing countries, reduction of emissions, strengthen adaptation, and align financial flows with the goals of the Paris Agreement.
The Action Plan for 2021-25 broadens World Bank Group’s efforts from investing in “green” projects to helping countries fully integrate their climate and development goals, according to a statement issued on Friday.
The Plan also comes as countries seek sustainable pathways out of the disruption caused by the Covid-19 pandemic.
“Our new Action Plan will identify and prioritise action on the most impactful mitigation and adaptation opportunities, and we will drive our climate finance accordingly. This means helping the largest emitters flatten the emissions curve and helping countries achieve successful adaptation and resilience to climate change,” said World Bank Group President David Malpass.
“We will be delivering climate finance at record levels and seeking solutions that achieve the most impact,” Malpass said.
The key highlights of the Action Plan include:
- Providing major increases in climate finance. The World Bank is already the largest multilateral provider of climate finance for developing countries. The Plan includes a commitment to increase delivery to an average of 35 per cent of total World Bank Group financing for climate over the duration of the Plan. At least 50 per cent of International Development Association (IDA) and International Bank for Reconstruction and Developing (IBRD) climate finance will support adaptation.
- Identifying and prioritising opportunities for high-impact climate action to inform future World Bank Group climate engagements and investments. A new core diagnostic tool, the Country Climate and Development Report (CCDR), will help countries align climate action and development efforts and absorb new climate-related technologies as they emerge.
- Aligning all World Bank Group financing flows with the objectives of the Paris Agreement to support countries’ climate commitments.
The World Bank – comprising the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) – will align all new operations starting July 1, 2023.
For the World Bank Group’s private sector development arms, IFC and MIGA, 85 per cent of Board approved real sector operations will be aligned starting July 1, 2023, and 100 per cent of these operations starting July 1, 2025, two fiscal years later.
The World Bank Group will regularly update its Board on implementing the Action Plan.
The new Action Plan builds on the World Bank Group’s achievements under its first Climate Change Action Plan, which delivered over $83 billion in climate finance over five years, including a record $21.4 billion in 2020.
