World Bank to invest $200bn to combat climate change

Sum available for 2021-25 represents doubling of current five-year plan

The World Bank is to make about $200bn (£157bn) available to fund action on climate change from 2021-25, helping countries adapt to the effects of warming and reduce greenhouse gas emissions.

The sum represents a doubling of the five-year investment plan put in place after the landmark Paris agreement of 2015.

Governments will meet in Poland this week and next to thrash out an implementation plan for the Paris accord, which binds countries to hold global warming to no more than 2C above pre-industrial levels, with an aspiration of a 1.5C limit.

Reports have shown the dangers of extreme weather if warming reaches 1.5C, and the need for governments to more than triple their efforts if these goals are to be maintained.

Jim Yong Kim, the president of the World Bank, said the poorest and most vulnerable people were at the greatest risk, and urged other financial institutions to follow its lead.

“We are pushing ourselves to do more and go faster on climate and we call on the global community to do the same,” he said. “This is about putting countries and communities in charge of building a safer, more climate-resilient future.”

This year, the World Bank devoted $20.5bn to climate change, meeting the targets it promised as part of the Paris agreement two years early. However, the group has decided more is needed.

Adapting to the effects of climate change that are already inevitable will be a key aim, and for the first time the World Bank will put this effort on an equal footing with reductions in emissions, investing $50bn in direct finance to adaptation over the period.

Of the $200bn, half will come in direct funding from the World Bank and half will be loans and other forms of assistance from other parts of the World Bank group, aimed at mobilising further finance from the private sector.

For instance, some funding will go towards providing early-warning systems and high-quality weather forecasts, which is expected to help 250 million people in 30 developing countries prepare for extreme weather.

Further funding will go towards “smart agriculture”, which is better adapted to the expected changes in weather and will help protect food production in some of the worst-affected developing countries. It will also help to protect 120m hectares of forest.

Kristalina Georgieva, the chief executive of the World Bank, said: “People are losing their lives and livelihoods because of the disastrous effects of climate change. We must fight the causes but also adapt to the consequences.”

Andrew Steer, the president of the World Resources Institute, said the bold and ambitious commitments would send a strong signal to private sector financiers.

“With climate impacts already taking a heavy toll around the globe, we know a far greater response is needed. Investing in climate action is the smart choice – it can reduce poverty, inspire innovation and bring far-reaching benefits to society,” he said.

Contributor

Fiona Harvey Environment correspondent

The GuardianTramp

Related Content

Article image
World Bank to spend 28% of investments on climate change projects
The world’s biggest provider of public finance to developing countries will refocus its financing efforts towards tackling climate change, group said

Fiona Harvey, Environment correspondent

07, Apr, 2016 @9:35 PM

Article image
World Bank says Paris climate goals at risk from new coal schemes
Jim Yong Kim says slowing down growth in coal-fired power stations is essential in order to reduce emissions

Larry Elliott in Washington

09, Oct, 2016 @11:43 AM

Article image
World Bank chief: global poverty bigger challenge than action on HIV
Jim Yong Kim says 1.2bn on under $1.25 a day 'stain on our conscience', and urges bold action on global warming

Larry Elliott, economics editor

04, Apr, 2013 @6:07 PM

Article image
Davos 2015: World Bank chief makes climate action plea
‘Move to cleaner cities no brainer,’ says Kim as Al Gore and Pharrell Williams launch initiative including global music event

Larry Elliott and Jill Treanor Davos

21, Jan, 2015 @8:41 PM

Article image
Economic climate has not affected views on global warming – poll

Guardian/ICM poll reveals public perception of climate change remains consistent despite political shift during financial crisis

Tom Clark

25, Jun, 2012 @6:47 PM

Article image
Climate change talks: five reasons to be cheerful or fearful | John Vidal
As world leaders convene in Paris for climate negotiations, the political and economic auspices are encouraging. Yet major obstacles will have to be overcome if the gap between rich and poor countries is to be bridged

John Vidal

30, Nov, 2015 @7:00 AM

Article image
World Bank president celebrates 'game changer' Paris talks
Jim Yong Kim joins host of powerful figures lauding ‘extraordinary’ talks undertaken in French capital

Fiona Harvey in Paris

13, Dec, 2015 @6:52 PM

Article image
World's poorest will feel brunt of climate change, warns World Bank

Droughts, floods, sea-level rises and fiercer storms likely to undermine progress in developing world and hit food supply

Fiona Harvey, environment correspondent

19, Jun, 2013 @7:23 AM

Article image
IMF chief Christine Lagarde warns world risks triple crisis
Lagarde says world risks falling incomes, environmental damage and social unrest without more sustainable approach to growth

Phillip Inman, economics correspondent

12, Jun, 2012 @2:51 PM

Article image
The World Bank: a glimmer of a possibility of change | Peter Chowla

Peter Chowla: Would any nominees for the World Bank presidency help this dinosaur of an institution start catering to the needs of the poor?

Peter Chowla

13, Apr, 2012 @7:00 PM