The World Bank has issued a statement regarding its climate finance accounting, highlighting its role as the largest provider of climate finance to developing countries. According to the statement, 44 percent of the bank's lending last year, amounting to $42.6 billion, was directed towards climate adaptation and mitigation. This marks an increase of 10 percent from the previous year and approaches their COP28 commitment of reaching 45 percent by the end of the current fiscal year.
The World Bank emphasized its systematic approach in assessing projects for their potential to reduce greenhouse gas emissions or address climate change vulnerabilities. The institution follows a strict methodology shared with other multilateral development banks to calculate what portion of funding qualifies as climate finance.
Over the past year and a half, efforts have been made by the World Bank to become more efficient and impact-oriented. This includes exploring ways to enhance accountability and transparency in its projects. The bank is considering new measures such as calculating and publishing climate financing at project completion and sharing detailed information on funding allocations within public sector operations.
The statement also addressed recent findings by Oxfam, which suggested inaccuracies in the World Bank's financial reporting. "Contrary to that report’s conclusions, the World Bank accounts for every dollar budgeted and disburses over 95% of the funds allocated," it stated. The bank assured that any undisbursed funds are repurposed for other development needs, maintaining strict oversight and independent audits according to international standards.