World Bank

Non-fossil to fossil energy ratio and scaling up climate investment in all sectors

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.

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Paris alignmentReasoning
UnalignedFor every $1 the IBRD & IDA provide to fossil fuels, $1.2 goes to renewables & $0.8 & $2.0 goes to Transmission & Distribution (T&D) respectively, between 2016-2018

Explanation

For every $1 the IBRD & IDA provide to fossil fuels, $1.2 goes to renewables & $0.8 & $2.0 goes to T&D respectively, between 2016-2018. This suggests that fossil fuels are given an equivalent prioritisation to renewables within the bank.

The World Bank has met its internal climate finance target of 28% by 2020, and is now moving to an absolute quantitative target.

The World Bank has seen a large increase in adaptation financing as a percentage of its total portfolio. In 2018, adaptation financing almost equalled the level of mitigation financing at the World Bank.

Recommendation: Scale up climate investment in the energy sector to ensure fossil fuel lending is at zero across a 3-year period

 
OECD (2018) OECD DAC Recipient Perspective – Climate Finance
Oil Change International (2018) Shift the Subsidies database
Joint Report on Multilateral Development Banks Climate Finance (2019,2018,2017,2016,2015,2014,2013)
World Bank (2019) World Bank Climate Finance
Last Update: November 2020

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