World Bank to allocate $150 billion for climate projects over next decade

The World Bank is set to invest $150 billion into climate projects over the next 10 years, with a focus on helping developing countries tackle carbon emissions and prepare for future environmental risks.

Jurgen Vögel, the World Bank’s Vice President for Sustainable Development, made the announcement during a panel discussion titled "The Global Financial System: Scaling Up Climate Finance" at COP29, Caliber.Az reports.

Vögel emphasized the scale of the climate financing challenge, noting that developing nations will require approximately $2.4 trillion annually through 2030 to reduce carbon emissions and build resilience to future climate risks.

In 2023, the World Bank committed $43 billion to climate projects in developing countries, positioning itself as one of the largest contributors to climate finance globally. This commitment comes as part of a broader strategy to increase support for vulnerable nations, particularly small island states, which are at significant risk from climate-related disasters.

“We have introduced new instruments like climate-resilient debt terms to assist countries facing environmental crises,” Vögel explained. "Currently, we have agreements with 14 countries, enabling them to postpone or reduce debt repayments in the event of a disaster. This initiative provides vital support to those in need."

The World Bank, established in 1944 and headquartered in Washington D.C., operates in over 120 countries with a workforce of approximately 10,000 employees. Beyond financial aid, the World Bank also provides critical analytical and advisory services to help developing countries improve their socio-economic conditions. Its research spans various topics, including the environment, poverty, trade, globalization, and economic development.

The World Bank is deeply involved in education and knowledge dissemination, helping countries address developmental challenges through informed strategies.

World Bank President Ajay Banga arrived in Azerbaijan on November 11 to participate in the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29).

As COP29 enters its fourth day on November 14, the conference features Climate FIT Day (Climate Finance, Investment, and Trade Day).  The Baku Initiative on Climate Finance, Investment, and Trade (BICFIT) will be unveiled during this session.

By Tamilla Hasanova