The World Bank announced on Thursday that it would spend 28 percent of its investments in renewable energy and other projects aimed at dealing with the effects of the climate change. It added that it would figure in the effects of global warming in all of its future investments as well.
In last year’s Conference on Climate Change in Paris, the World Bank, along with other development banks, agreed to come forward and provide financial assistance to the poor and developing countries. This would allow these countries to adopt measures to effectively reduce the greenhouse gas emission and adapt to the effects of the climate change.
“Following the Paris climate agreement, we must now take bold action to protect our planet for future generations,” The Guardian quoted Jim Yong Kim, president of the World Bank Group, as saying. “We are moving urgently to help countries make major transitions to increase sources of renewable energy, decrease high-carbon energy sources, develop green transport systems and build sustainable, livable cities for growing urban populations. Developing countries want our help to implement their national climate plans, and we’ll do all we can to help them.”
The World Bank is planning to fund projects that would add 30 gigawatts of renewable energy to the global grid. The bank said in a statement that this would sufficiently provide power to 150 million homes by 2020. It is also planning to quadruple investments on projects aimed at making transport systems more resilient to the climate change, the NDTV News reported.
The International Finance Corporation, a branch of the World Bank, is planning to increase its investments in climate change projects from the current US$2.2 billion (AU$2.92 billion) a year to US$3.5 billion (AU$4.65 billion) a year.
“This is a fundamental shift for the World Bank. We are putting climate change into our DNA. Climate change will drive 100 million more people into poverty in the next 15 years [unless action is taken],” said John Roome, senior director for climate change at the World Bank.