The World Bank has pledged around $200bn (which in GBP is £157bn) towards funding action on climate breakdown. This money will go to both the means to reduce greenhouse gas emissions, and the means by which countries will adapt to the effects of global heating, and will be in use from 2021 to 2025. Adapting to inevitable climate breakdown effects will be a key aim, with $50bn being pledged to this set of actions alone.
The $200bn is made up of direct investments from the World Bank, and of other loans and investments from other parts of their group. It is with hope that other large corporations find influence within the actions of the World Bank and invest in climate breakdown prevention with their own capital, which could, in turn, inspire other members of the private sector to follow suit.
On the pledge, the President of the World Resources Institute, Andrew Steer, commented “With climate impacts already taking a heavy toll around the globe, we know a far greater response is needed. Investing in climate action is the smart choice – it can reduce poverty, inspire innovation and bring far-reaching benefits to society,”.
In Poland this week, governments will meet for COP24, to determine the courses of action to be undertaken in an effort to implement the Paris Climate Agreement, which was agreed upon in 2015, binding countries to contractual obligations that will hopefully limit global heating to 2C above pre-industrial levels. The $200bn represents a doubling of the five-year investment plan put in place after the agreement.
It has been estimated that, other than dire environmental destruction, 140 million people will become climate refugees by 2050, with the president of the World Bank Jim Yong Kim stating the the poorest and most vulnerable are at the greatest risk from climate breakdown.
“We are pushing ourselves to do more and go faster on climate and we call on the global community to do the same. This is about putting countries and communities in charge of building a safer, more climate-resilient future.”
The chief executive of the World Bank, Kristalina Georgieva, said “People are losing their lives and livelihoods because of the disastrous effects of climate change. We must fight the causes but also adapt to the consequences.”
Some of the $200bn will go towards extreme weather warning systems such as high quality weather forecasts and other equipment. It is hoped that systems such as these would improve the safety and quality of life for over 200 million in around 30 developing countries which have the greatest risk of being hit by extreme, climate-breakdown caused weather.
Other portions of the pledged sum will go towards ‘smart agriculture’ – new ways of farming to support a growing population in a world where conventional or past ways of farming would no longer work. Food security is a concern for environmentalists, who worry that climate breakdown and man-made pollution will destroy vital ecosystems that supply biodiversity, and contribute to land degradation – both of which would impact global food production negatively.
Hopefully this bold and ambitious move to protect livelihoods and delicate ecosystems will send a strong signal to other private sector financiers. With 100 companies responsible for 71% of greenhouse gas emissions, it is a much welcomed move that helps to pave the way for other multinationals to change their ways.