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Davos 2019: World Bank Steps Up Commitment of $200bn to Global Climate Finance

World Bank IMF and Dev Agencies	1201 VIEWS
World Bank IMF and Dev Agencies
1201 VIEWS

Wednesday, January 30, 2019 04.30PM / Nifemi Taiyese for Proshare WebTV / Image Credit: Daily Express

The World Bank is stepping up its commitment to climate finance globally, to the tune of $200bn.

Kristalina Georgieva the chief executive of the World Bank disclosed this as a panelist at the 2019 Davos World Economic Forum (WEF).

The panel which discussed “Global Economy in Transition” was moderated by the Managing Director of the International Monetary Fund Ms. Christine Lagarde.

According to Georgieva the investments will be placed in mitigations like battery storage, wind energy, low carbon mobility, rail transportation will be put on the same footing as investment in adaptation.

The World Bank boss further stated that the Bank will cover investments in resilient climate cities and coastal areas with mangroves.

Giving insight on the climate she said “Climate change is not only happening but it is happening faster than we thought it would. Standford University calculated what it means if temperature should continue to go up, it goes up to 2.5degree, it shaves off 15% of global GDP, it goes up to 3 degree we lose 25% of global GDP”.

She outlined three areas where the World Bank is working on encouraging green global economy investment:

Eliminating harmful subsidies e.g energy, agriculture : In this area the World Bank has been able to so far shrink it globally from $600bn to now $300bn.
Recognizing a shift to the new climate economy: There is a commission on the new climate economy that came up with a very attractive pathway, which will see $26 billion created in renewable energy, new mobility, low carbon mobility, low carbon buildings and 65 million more jobs as a result
Helping countries and communities that have done very little to contribute to climate change but are already living with its consequences adapt: Areas like Niger, Chad, Small Island states, Coastal regions in West Africa are part of the plan to drive a sustainable environment.

The World Bank CEO was of the view that it was morally right and absolutely essential to scale up sustainability in the globe economy, and that there must be an increase in action on adaptation.

On the partnership with the private sector to increase investments in climate finance and green economy, Georgieva said many business leaders are stepping up and are committed to climate action.

From her viewpoint many companies have realized the importance of climate action for their profitability. She believes that Central Banks can help from the monetary policy side by relentlessly pursuing the appropriate pricing of carbon emission.

At the moment there are 70 jurisdictions, countries, and regions that have embraced carbon pricing.

World Bank Carbon Pricing Dashboard