World Bank to invest $200 billion for climate action

World Bank President Jim Yong Kim. AFP

The World Bank Group announced Tuesday that it would invest $200 billion in support of countries taking ambitious climate action from 2021 to 2025.

“Climate change is an existential threat to the world’s poorest and most vulnerable. These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change,” said World Bank Group President, Jim Yong Kim in a statement.

The $200 billion promised by the World Bank will be made up of around $100 billion in direct finance from the World Bank — both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

The other half will be a combined direct finance from the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and private capital mobilized by the World Bank Group.

World Bank aims to focus on “boosting support for climate adaptation” because millions of people are already facing the severe consequences of increasing extreme weather events.

“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 that are often most dramatic for the world’s poorest people,” said World Bank Chief Executive Officer Kristalina Georgieva.

Specifically, adaptation efforts will include “supporting higher-quality forecasts, early warning systems and climate information services.”

This is expected to prepare 250 million people in 30 developing countries for climate risks, build climate-responsive social protection systems in 40 countries and finance climate smart agriculture investments in 20 countries.