Development Banks increase Funding to combat Climate Change

“The report provides transparency by breaking down the aggregate estimate of climate finance into its main financial elements”, the report said. “The bank is significantly stepping up its support for African countries, not only to meet that threat but also to seize the opportunity to drive low-carbon, climate-resilient growth”.

In dollar terms, that would be an increase from an average of $10.3 billion a year now to $16 billion a year in 2020, at current funding levels.

As it stands, 21 per cent of the Bank Group’s funding is climate related and it could rise to 28 per cent in 2020 in response to client demand, representing a one-third increase in climate financing.

The world’s wealthy global locations more than likely will have the ability to attain the aim of offering $a hundred billion a 12 months by 2020 to assist poor nations fight and adapt to local weather change, as the results of elevated pledges made in Lima, key ministers mentioned on Friday. As the World Bank and global Monetary Fund gather for their annual meetings in Lima, Peru this week, the United States looks to the multilateral development banks to set ambitious targets for scaling up mitigation and adaptation finance.

More than 70 percent of the total for 2014 came from the public sector – $20.4 billion from multilateral sources such as development banks, and $23.1 billion from bilateral sources, mainly grants and loans from one government to another.

Climate Finance in 2013-14 and the $100bn goal, published by the Organisation for Economic Cooperation and Development, highlighted its latest estimates of public finance provided by donor governments through various instruments and institutions.

“There is no guarantee for any developing country that they are going to get any kind of reasonable support to cope with a changing climate”, said Tim Gore, head of climate change and food policy for Oxfam global.

“The $100 billion is a very important political commitment that developed countries made in Copenhagen but it’s really the tip of the iceberg”, said Jennifer Morgan of the World Resources Institute.

In making his announcement, the Bank President called the financing of climate action a “collective challenge….we all know that country needs for ending extreme poverty and boosting shared prosperity and combatting climate change are enormous”.

“Ministers failed to address the elephant in the room: only a tiny fraction of climate funds are reaching the poorest countries to help them adapt to climate change”, Oxfam climate change policy expert Isabel Kreisler said in a statement.

The countries include the Philippines, Bangladesh, Costa Rica and island nations and are home to nearly 700 million people. “The real question is about the shifting of the trillions”. “The bank, with the support of our members, will respond ambitiously to this great challenge”, Kim said. China recent financial contribution, while not part of the $100 billion, reflects a new threshold has been crossed.