World Bank boosts target for climate-friendly financing to 35% over five years

 The multilateral development lender said half of the climate-related financing would be done by its main units - the International Bank for Reconstruction and Development and the International Development Association.

Between 2016 and 2020, World Bank Group said its institutions, including the International Finance Corp and the Multilateral Investment Guarantee Agency, provided over $83 billion in climate-related finance to developing countries.(Reuters file photo)

The World Bank said on Wednesday it was setting a new five-year target for 35% of its financing, on average, to have climate “co-benefits,” up from a 28% target for the previous five-year period ended in 2020.

The multilateral development lender also said half of the climate-related financing would be done by its main units - the International Bank for Reconstruction and Development and the International Development Association - and would be aimed at supporting climate adaptation and resilience projects.

“Climate change presents critical challenges to our development efforts,” World Bank President David Malpass, a former Trump administration Treasury official, said in a statement.

“The poorer countries suffer most from climate events – including flooding, droughts and food insecurity. In addition to increasing our climate financing, we’re working to achieve country outcomes that reduce greenhouse gas emissions and a successful transition to lower-carbon development.”

Between 2016 and 2020, World Bank Group said its institutions, including the International Finance Corp and the Multilateral Investment Guarantee Agency, provided over $83 billion in climate-related finance to developing countries.