In the last fiscal year, the institution led by Ajay Banga nearly achieved the most ambitious targets set in 2023
In 4 years, climate finance +60%
The World Bank increased the resources mobilized for climate finance by 10% in the last fiscal year, reaching a total of $42.6 billion. In the previous fiscal year, it reached $38.6 billion, in 2022, it was $31.7 billion, and in 2021, it was $26.6 billion. Over four years, the Bretton Woods organization has recorded an increase of approximately 60% in the resources made available for interventions against the climate crisis.
These figures align with the direction announced in recent years, especially with the shift associated with Ajay Banga’s election to the head of the World Bank. On December 1, 2023, during COP28 in Dubai, Banga presented the updated new goals: no longer 35%, but 45% of loans should be linked to addressing the climate crisis by 2025. This target was nearly reached a year ahead of schedule, as this year’s figure hit 44%.
However, the situation is less optimistic regarding another crucial goal for the quality of the climate finance provided. The commitment made at last year’s climate summit aimed to achieve, also by 2025, a perfect balance between the share of resources allocated to climate crisis mitigation interventions and those for adaptation in public financing. The two vehicles responsible for managing the finances of these channels, IBRD and IDA, together disbursed $31 billion in 2024, of which only one-third, or $10.3 billion, was invested in adaptation.
Last October, the World Bank formally expanded its mandate to include other major global crises beyond poverty, which has been at the center of its historical mission. Among these is the fight against the climate crisis, which has been described as an “existential” threat. However, according to some observers, the organization continues to finance fossil fuel sources. In 2022 alone, it reportedly facilitated flows of $3.7 billion.
