The World Bank has announced a record-breaking $42.6 billion in climate change financing for the 2024 fiscal year, marking a 10 percent increase compared to the previous year. This significant investment reflects the institution’s strengthened commitment to tackling climate change under the leadership of its new president, Ajay Banga, who assumed the role with a focus on reforming the 80-year-old global development lender.
In a move towards a more sustainable future, the World Bank pledged last December to increase the share of its overall financing dedicated to climate change adaptation from 35 percent to 45 percent by fiscal year 2025. Impressively, the institution nearly reached this goal ahead of schedule, with 44 percent of its total $97 billion financing for 2024 having a climate component.
The World Bank’s climate financing spans a range of financial instruments, including loans, grants, and guarantees. These resources are aimed at helping countries transition to cleaner energy, build more resilient communities, and strengthen their economies while addressing environmental challenges.
In a statement, the Bank emphasized its focus on “supporting efforts to end poverty on a livable planet,” underlining the role of each of its institutions in contributing to this critical objective. However, despite this milestone, the Bank acknowledged that more work lies ahead in the global fight against climate change.
As the World Bank continues to scale its climate efforts, this record-setting investment serves as a powerful indicator of its growing role in shaping a sustainable future for developing nations.
