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, $1.5 &  $1.3 goes to renewables & $1 & $2.8 goes to T&D respectively, between 2016-2019.

Explanation

For every $1 the IBRD & IDA provide to fossil fuels, $1.5 &  $1.3 goes to renewables & $1 & $2.8 goes to T&D respectively, between 2016-2019. This is a slight improvement on the figures for 2016-2018. 

The World Bank has met its internal climate finance target of 28% by 2020, and has now adopted a 35% target for 2025. 

The World Bank has seen a large increase in adaptation financing as a percentage of its total portfolio. In 2020, 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 (2020) World Bank Group Announces Ambitious 35% Finance Target to Support Countries’ Climate Action
World Bank (2019) World Bank Climate Finance

                                                   

This work is funded by Good Energies Foundation.

Last Update: July 2022