Development banks to intensify climate efforts, ignore fossil fuels
Ten of the world’s leading development banks committed to intensifying their climate actions at the COP28 summit; however, they did not make any statements about discontinuing funding for fossil fuel projects, according to a document reviewed by Reuters.
In a declaration set to be released at the Dubai event, the group, which includes the World Bank and its regional counterparts, expressed that the opportunity to ensure a habitable earth is “rapidly closing.”
Demands for banking reforms in light of the climate crisis have increased due to unprecedented extreme weather events. Despite the group’s record disbursement of $61 billion in finance in 2022, it is still significantly less than what is required.
The UN Secretary-General Antonio Guterres told world leaders on Friday that the only way to save the planet was to stop using fossil fuels, but despite the rising global emissions, the statement didn’t mention the issue directly.
The European Investment Bank (EIB) is the only signatory to the ‘Glasgow Declaration’ that has pledged to cease funding fossil fuel projects so far.
The banks stated their intention to adopt a standardised method for assessing and reporting climate effects in the future.
They also aim to enhance the application of analytics to aid nations in setting priorities and spotting investment prospects.
A new joint long-term strategy programme, spearheaded by the World Bank, is set to provide coordinated assistance to countries and sub-national entities.
This programme aims to aid in the development of strategies addressing key issues such as decarbonisation and enhancing climate resilience.
The group has committed to assisting countries in establishing platforms that promote a mutually beneficial mix of support, including policy reform, finance, and technical assistance.
To draw more private capital, the group plans to consider actions such as eliminating “distorting” subsidies and developing a series of green projects.
