The World Bank has announced a 10-year Global Sustainable Development bond on May 16. The investment goal of ¬1.5 billion was significantly oversubscribed, reaching ¬2 billion from 69 investors.
World Bank Group is providing USD$22.5 billion to Africa for climate mitigation and adaptation across five years beginning with 2021, adding to the $17 billion already committed through the Africa Climate Business Plan.
The MDBs’ commitment goes beyond specific MDBs’ 2020 and 2030 climate finance targets, and builds on their ongoing contribution to climate finance, which amounted to US$35 billion in developing and emerging economies in 2017.
The World Bank said the move represented a significantly ramped up ambition to tackle climate change, sending an important signal to the wider global community to do the same.
The World Bank committed $1 billion to finance battery-storage systems in developing countries, and expects its participation to attract another $4 billion in backing.
First in a new series of Sustainable Development Goal bonds issued by the World Bank will aim to fund projects that promote clean water and healthy oceans.
The international financial institution is spending more money than ever on combatting climate change.
The report, launched today, finds that there are currently 51 carbon pricing initiatives around the world, consisting of 25 emissions trading schemes and 26 carbon taxes.
