The World Bank is stepping up its efforts to decarbonize the global economy. At the One World Summit in Paris on Tuesday, it announced that it will no longer finance upstream oil and gas after 2019. It will also accelerate climate action investments in developing countries and emerging markets.
The World Bank is turning its back on oil and gas exploration. It announced on Tuesday that it will no longer finance upstream oil and gas projects after 2019. With one exception: it will consider financing upstream gas in the poorest of countries where there is a clear benefit in terms of energy access for the poor and the project still fits within the countries’ Paris Agreement commitments, the World Bank says.
At the same time, the World Bank wants to accelerate the mobilization of finance to help developing countries decarbonize. For example, last week it signed an agreement with the government of Egypt for a $1.15 billion development policy aimed at reducing fossil fuel subsidies and creating the environment for low-carbon energy development.
What’s more, the financing arm of the World Bank, the International Finance Corporation (IFC), will invest up to $325 million in the Green Cornerstone Bond Fund to create the largest ever green-bond fund dedicated to emerging markets. The initiative aims to expand and unlock private financing for climate-related projects.
The World Bank announced its new climate-action efforts at the One Planet Summit in Paris, which was held two years to the day after the historic Paris climate agreement was concluded.
French president Emmanuel Macron invited dozens of world leaders and philanthropists back to the French capital to try to give new momentum to the fight against climate change. A particular focus was on how to promote green investments to fight global climate change.
Image credit: Statoil