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The World Bank can bring the world’s poor into the clean energy revolution

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Vox or enjoy below:

🗞️ Driving the news: The World Bank, a significant player in global development finance, is facing criticism for its approach to climate change
• Despite its commitment to supporting clean energy, the bank has been investing heavily in fossil fuels, particularly in Africa and other developing regions

🔭 The context: The World Bank and regional development banks, traditionally focused on poverty alleviation and development, are now urged to explicitly address climate change as a standalone objective
• As highlighted by a recent G20-commissioned report, to tackle these augmented responsibilities without neglecting their foundational mission, there's a need for significant reforms, increased collaboration, and a considerable boost in their financing capabilities

🌍 Why it matters for the planet: The bank's continued support for fossil fuels undermines global efforts to combat climate change, especially in developing nations, which are most vulnerable to the impacts of global warming, and are being pushed towards a path that is not sustainable in the long run

⏭️ What's next: There's a growing call for the World Bank to realign its investments with its public commitments and implement reforms focused on helping countries deal better with the green transition
• Advocates argue that the bank should prioritize renewable energy projects, especially in regions that are heavily reliant on fossil fuels

💬 One quote: "The World Bank needs to recognize the urgency of the climate crisis and act accordingly" (Masood Ahmed, president of the Center for Global Development) 

📈 One stat: Historically maintaining a conservative 5 to 1 leverage ratio, the World Bank now aims to tap into its equity more efficiently, targeting an additional $50 billion in loans over the next decade

Click for more news covering the latest on sustainable finance

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