Washington, DC – In an important step to address climate change, the World Bank Group announced that it intends to increase its annual financing for climate projects by $9 billion, bringing this amount to 45% of its budget. This commitment is part of the global financial community's response to the United Nations Climate Change Conference (COP26) agreements, which aim to increase countries' resilience to climate-related challenges.
The Asian Development Bank also outlined an ambitious plan, pledging to invest $100 billion by 2033 to strengthen the Asia-Pacific region's response to climate change. This investment is expected to support various initiatives, from reducing emissions to adapting infrastructure to withstand extreme weather events.
Likewise, the Inter-American Development Bank Group has set a goal of raising US$150 billion to facilitate Latin America's transition to a green economy. The IDB focuses on the conservation and sustainable management of the Amazon rainforest, a critical biome for global biodiversity and carbon storage.
Multilateral development banks have collectively agreed to suspend debt repayments during the climate emergency. The measure aims to provide financial relief to countries affected by natural disasters, allowing them to prioritize immediate recovery efforts without bearing the additional burden of debt repayment.
In addition, multilateral development banks are collaborating to standardize reporting on climate finance. The goal is to create a transparent and coherent framework that attracts private sector investment. In doing so, these banks aim to stimulate sustainable economic growth and ensure that financial flows are aligned with low-carbon and climate-resilient development pathways.
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