(CMC) — The World Bank says the 2020 Joint Report on Multilateral Development Banks’ Climate Finance indicates that climate finance to low and middle-income economies, such as those in the Caribbean, rose to US$38 billion.
In addition to this, the Washington-based financial institution said US$28 billion was committed to high income countries by which are committed by major multilateral development banks (MDBs) focused on developed countries.
The World Bank Group (WBG) accounts for more than half of this climate finance for developing countries, including the Caribbean, and over two-thirds of climate adaptation finance.
The report states that, over the last five years, the WBG delivered over US$83 billion in climate finance, including a record US$21.4 billion in 2020.
Results included over 48 projects in low-carbon and renewable energy to help businesses and communities thrive, as well as support to countries to mitigate disaster risks, building resilience in people, infrastructure and economies.
Through its new Climate Change Action Plan 2021-25, the World Bank said it will broaden efforts from investing in “green” projects to helping countries fully integrate their climate and development goals.
“The WBG will identify and prioritise action on the most impactful mitigation and adaptation opportunities. The WBG will also align its financial flows with the goals of the Paris Agreement and support countries to reduce emissions and strengthen their resilience to climate risks.”
The report notes that the total climate co-finance committed during 2020 alongside MDB resources was US$85 billion.
Together, it said MDB climate finance and climate co-finance totalled more than US$ 51 billion. The amount of private direct mobilisation stood at US$ .9 billion.
“The MDBs will continue to improve their tracking and reporting of climate finance in the context of their commitments to ensure consistent financial flows to the countries’ long-term, low-carbon and climate-resilient development pathways, as established in the Paris Agreement,” states the 2020 report, which is the 10th in the series.
It adds that the 2020 financing “helped play a key role in supporting countries to embed green and climate-focused solutions as part of their recoveries from the impact of COVID-19”.
While these pandemic-related investments affected MDBs’ normal lending operations and, thus, potentially the delivery of individual climate finance targets, the 2020 report says interventions and support from the MDBs laid a solid foundation for “building back better” for a greener, more resilient, post-COVID-19 future.