World Bank Contributes USD 26 Billion To Developing Country Climate Finance

JAKARTA - Managing Director of Development Policy and Partnerships of the World Bank, Mari Elka Pangestu, said that the World Bank has contributed USD 26 billion to fund climate change alleviation in developing countries by 2021.

"In the last fiscal year in 2021 we have contributed 26 billion US dollars to climate finance for developing countries and we are working with developing countries to support them," she said.

The support provided is in the form of developing country-specific platforms and strategies for low-carbon development.

She said, since May 2021, the World Bank has developed an action plan to increase climate financing commitments to around 30 to 40 percent of the total financing disbursed.

As much as 50 percent of the climate finance will be used for developing countries to adapt in the implementation of their carbon emission reduction policies.

“But we can't do climate change alleviation funding alone. It has to be done with others, with the government, with other development banks, and most importantly with fundraising from the private sector,” she said.

She views that currently financial institutions also have commitments to achieve the zero carbon emission target, but often find it difficult to channel the funding.

"There needs to be a policy regarding where to pipeline projects and get their funding measured to show they are really investing in low-carbon development and not just greenwashing," she said.