Home Industry Finance World Bank climate finance reaches record $42.6bn in fiscal 2024 The $4bn increase shows progress but is well short of the trillions of dollars in additional resources needed annually to finance the clean energy transition by Reuters September 22, 2024 Image credit: dodo_dyg/ Getty Images 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. Read: Grant Thornton’s Hisham Farouk on trade, sustainable finance and ESG Tags climate finance Emerging Markets Sustainable finace world bank You might also like Breaking the Middle-Income Barrier: Strategies for emerging economies Middle East: As tensions mount, a look at Lebanon’s myriad crises European firms sign 20 deals with Egypt as EU looks to bolster ties World Bank announces $700m in financing for Egypt