World Bank Hints at Possible Increase in Climate Change Financing
Climate financing is key to achieving climate change adaptation and mitigation targets particularly in the developing world, which stands to be disproportionately affected by the effects of climate change.
Early this month, in recognition of the central role finance plays in climate change adaptation and mitigation around the globe, the World Bank announced that it is considering increasing its funding for climate change related projects by about 7% by 2022. The Bank now provides an average of $10.3 billion a year in direct financing for climate action. A 7% increase would translate to $16 billion for climate financing in 2020.
In proportional terms, the bank’s current funds to climate change related projects translates to about 21% of its total funding for all projects. The potential 7% increase will raise the funding to 28% by 2020 contingent on support from its members. This new commitment from the World Bank is good news for climate financing, and it reflects the growing understanding that climate change adaptation needs in low-income countries need strong financial backing from high-income countries. More organizations, such as the international aid agencies in high-income countries, need to follow the World Bank’s lead and ramp up climate financing for adaptation in the global South.
Note: All the percentages are either in the original article or are arrived at based on information provided in the article.