At the recent COP28 summit, the World Bank Group announced a significant increase in its climate finance allocation. The institution committed to raising its climate finance from 35% to 45% of total lending for fiscal year 2025, spanning from July 1, 2024, through June 30, 2025. Additionally, the group set a target for half of its public sector climate financing—via IBRD and IDA—to support adaptation and half for mitigation.
In fiscal year 2024, the World Bank Group delivered $42.6 billion in climate finance, representing 44% of its total financing. This achievement brings them close to their new target.
The breakdown by institution is as follows: IBRD and IDA provided $31 billion in climate finance in FY24, with $10.3 billion allocated specifically to adaptation and resilience investments. The IFC contributed $9.1 billion in long-term climate finance, while MIGA delivered $2.5 billion.
This funding aims to support efforts such as helping the Philippines manage disasters and climate threats with an emphasis on schools and health facilities; boosting water security in Senegal by restoring depleted or polluted sources; and developing a climate-resilient Bay Terminal deep seaport in Bangladesh.
Looking forward, the World Bank Group plans to focus more on project outcomes rather than just financial commitments. Their new Corporate Scorecard will emphasize metrics like greenhouse gas emissions reduction, renewable energy capacity enabled, and improved resilience to climate risks for millions of people.