The World Bank Group announced on Thursday that it provided a record $42.6 billion in climate finance during fiscal 2024, a 10% increase from the $38.6 billion delivered the previous year, nearing its goal of dedicating 45% of total financing to climate projects.
While the $4 billion increase recorded at the fiscal year end on 30 June marks progress, it falls short of the trillions needed annually to finance the clean energy transition in emerging markets and developing nations. World Bank President Ajay Banga has implemented balance sheet leverage and other capital adequacy measures to increase annual lending capacity by $10 billion to $12 billion over the next decade, addressing global challenges like climate change and pandemics in addition to the bank’s core focus on poverty reduction and development.
In December, the bank committed to allocating 45% of its total lending for fiscal 2025, which began on July 1, to support climate adaptation and mitigation efforts. The fiscal 2024 climate finance came from across the World Bank Group, supporting projects ranging from cyclone shelters in Bangladesh to electric bus rapid transit systems in Cairo, Egypt, and Dakar, Senegal.
The International Bank for Reconstruction and Development (IBRD), which lends to middle-income countries, and the International Development Association (IDA), which assists the poorest nations, together provided $31 billion in climate finance, with $10.3 billion earmarked for adaptation and resilience projects. The International Finance Corp (IFC), the private sector lending arm, contributed $9.1 billion in long-term climate finance, while the Multilateral Investment Guarantee Agency (MIGA) delivered $2.5 billion through political risk insurance and credit enhancement.