World Bank climate finance reaches record $42.6bn in fiscal 2024

The World Bank Group said on Thursday it delivered a record $42.6bn in climate finance during fiscal 2024, a 10 per cent increase over the $38.6bn the prior year and close to its target of a 45 per cent share of total financing devoted to climate projects.

The $4bn increase in climate financing during the fiscal year ended June 30 shows progress towards the bank’s goals but is well short of the trillions of dollars in additional resources needed annually to finance the clean energy transition in emerging markets and developing countries.

World Bank President Ajay Banga has increased balance sheet leverage and taken other capital adequacy measures to squeeze out an additional $10bn to $12bn in annual lending capacity over 10 years to help tackle climate change and other global crises including pandemics in addition to its traditional anti-poverty and development mission.

Last December, the bank committed to devoting 45 per cent of its total lending for fiscal 2025, which started on July 1, to supporting climate adaptation and mitigation.

The fiscal 2025 climate finance total comes from all parts of the World Bank Group, supporting projects from cyclone shelters in Bangladesh to new electric bus rapid transit systems in Cairo, Egypt and Dakar, Senegal, the World Bank said.

The International Bank for Reconstruction and Development, its main lending arm for middle-income countries, and the International Development Association, which serves the poorest countries, together delivered $31bn in climate finance, of which $10.3bn specifically supported investments in adaptation and resilience.

The International Finance Corp, the private sector lending arm, provided $9.1bn in long-term climate finance. The Multilateral Investment Guarantee Agency, the bank’s political risk insurance and credit enhancement arm, delivered $2.5bn in climate finance for the fiscal year.

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