World Bank Climate Finance Hits Record $42.6 Billion in Fiscal 2024, According to Reuters

World Bank Group Reports Record Climate Finance in Fiscal 2024

WASHINGTON – The World Bank Group announced that it provided a record $42.6 billion in climate finance during fiscal year 2024, marking a 10% increase from the previous year’s $38.6 billion. This progress is close to the bank’s goal of allocating 45% of its total financing to climate initiatives.

The increase in climate financing signifies progress, but the total remains far from the estimated trillions needed annually to support the clean energy transition in emerging markets and developing nations.

World Bank President Ajay Banga has taken steps to enhance balance sheet leverage and implement other capital adequacy measures, aiming to generate an additional $10 billion to $12 billion in annual lending capacity over the next decade. This initiative is designed to address not only climate change but also other global challenges, including pandemics, while continuing the bank’s traditional focus on poverty alleviation and development.

The bank has committed to dedicating 45% of its total lending for fiscal 2025, which commenced on July 1, to climate adaptation and mitigation efforts.

The climate finance figure for fiscal 2025 encompasses contributions from all sectors of the World Bank Group, covering diverse projects such as cyclone shelters in Bangladesh and new electric bus rapid transit systems in cities like Cairo, Egypt, and Dakar, Senegal.

The International Bank for Reconstruction and Development, which primarily serves middle-income countries, along with the International Development Association, which focuses on the poorest nations, collectively provided $31 billion in climate finance. This included $10.3 billion specifically directed toward investments in adaptation and resilience.

Furthermore, the International Finance Corporation, which caters to the private sector, contributed $9.1 billion in long-term climate financing. The Multilateral Investment Guarantee Agency, responsible for political risk insurance and credit enhancement, delivered another $2.5 billion in climate finance for the fiscal year.