The 2024 Trust Funds Annual Report highlights the role of trust funds and financial intermediary funds (FIFs) in addressing global development challenges. These funds are essential in a world where development needs surpass available resources, offering partnerships to tackle issues from public health to energy access and food security.
Trust funds managed by the World Bank Group complement its core financing to support low and middle-income countries across various development areas. In the 2024 fiscal year, trust funds received $7.2 billion from over 100 donors and disbursed $10.1 billion, holding $18.9 billion in trust with 40 percent committed for future disbursement.
FIFs pool funding from multiple sources to address large-scale global challenges. The new Fund for Responding to Loss and Damage will support vulnerable countries facing climate change impacts. Each FIF has an independent governing body that sets strategic directions and makes funding decisions.
The World Bank acts as a trustee for 27 FIFs, holding and investing contributed funds before transferring them to implementing entities as instructed by the governing bodies. In 2024, FIFs received $10.6 billion in contributions and transferred $10.1 billion to implementing entities, including $1.1 billion to the World Bank Group itself.
Trust funds and FIFs encourage innovative solutions that can be scaled across the World Bank Group, reducing risks associated with experimentation. The Forest Carbon Partnership Facility (FCPF) enables countries to implement mechanisms for reducing emissions from deforestation, with Viet Nam receiving $51.5 million for verified emission reductions in March 2024.
These funds also provide critical support in fragile, conflict-affected, and violent (FCV) settings where traditional lending instruments cannot reach. For instance, Somalia's efforts to rebuild after decades of instability were supported by trust fund financing through the Somalia Multi-Partner Fund.
As the World Bank implements reforms aimed at simplicity and impactfulness, trust funds and FIFs remain vital tools demonstrating how collaboration, flexibility, and innovation can address global challenges effectively.