World Bank Provides Record $42.6B in Climate Finance for 2024
The World Bank Group has delivered a record $42.6 billion in climate finance for fiscal year 2024, reflecting a 10% increase from the previous year. These funds, allocated from July 1, 2023, to June 30, 2024, support global projects aimed at tackling climate change, advancing clean energy, strengthening communities, and boosting economies worldwide.
This historic climate finance achievement is part of the World Bank’s broader mission to combat poverty while ensuring a livable planet. At COP28, the Bank committed to raising climate finance to 45% of its total lending for fiscal year 2025. A new target has also been set to equally divide public climate financing—half for adaptation and half for mitigation—addressing the urgent adaptation needs of many countries.
Ajay Banga, President of the World Bank Group, emphasized the Bank’s focus on climate adaptation and resilience: “We are prioritizing climate adaptation for the nations we serve, especially those most vulnerable to climate impacts, ensuring they are better prepared for a future shaped by climate change.”
In FY24, each branch of the World Bank Group made significant contributions. The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) provided $31 billion, with $10.3 billion focused on adaptation and resilience efforts. The International Finance Corporation (IFC), the private sector arm, contributed $9.1 billion, while the Multilateral Investment Guarantee Agency (MIGA), specializing in political risk insurance, provided $2.5 billion for climate-related financing.
Climate finance represented 44% of the World Bank’s total $97 billion financing for FY24. The funds were invested in high-impact projects, including constructing cyclone shelters in Bangladesh, reducing methane emissions in Vietnam, and launching electric public transit systems in Senegal and Egypt.
Sierra Leone Among Beneficiaries of World Bank Climate Finance
Sierra Leone is one of the countries benefiting from these climate initiatives. In May 2024, the World Bank approved a $74 million IDA grant for the Sierra Leone Connectivity and Agricultural Market Infrastructure Project (CAMIP). This project will improve climate-resilient transportation and market access in rural areas, where inadequate infrastructure has hindered development. The grant will fund all-season roads to ensure rural communities remain connected to jobs, services, and markets, even during extreme weather events.
Global Impact of World Bank Climate Finance
Several major projects supported by World Bank climate finance are making a significant global impact. In Bangladesh, over 900 cyclone shelters have been constructed, with an additional 900 shelters rehabilitated to protect coastal communities from flooding and storm surges. Vietnam is reducing methane emissions and promoting sustainable farming in the Mekong Delta, benefiting 1.4 million households.
In Africa, fully electric Bus Rapid Transit (BRT) systems have been launched in Dakar, Senegal, and Cairo, Egypt, reducing reliance on fossil fuels and cutting carbon emissions. Dakar’s BRT, the first of its kind in West Africa, is expected to reduce 1.2 million tons of carbon dioxide over its lifetime.
As the World Bank enters fiscal year 2025, it is set to expand its climate finance, ensuring that more nations, including Sierra Leone, can adapt to and mitigate climate change while fostering sustainable economic growth.
