World Bank's commitment to addressing global climate challenges reached an all-time high, with $42.6 billion in climate finance delivered during fiscal 2024. This marks a $4 billion increase from the previous fiscal year and highlights the institution’s efforts to align a significant portion of its lending with climate objectives. Despite the progress, the sum remains a fraction of the trillions needed annually to combat climate change effectively, particularly in developing nations.

The bank’s expanded climate financing comes at a pivotal time as emerging economies grapple with the escalating impacts of climate-related disruptions. From financing electric bus rapid transit systems in Cairo and Dakar to cyclone shelters in Bangladesh, the World Bank's initiatives are diverse, targeting both mitigation and adaptation efforts. The institution has set a clear target to dedicate 45% of its total financing to climate projects by 2025, underscoring its growing focus on sustainability.

Ajay Banga, the World Bank’s president, has been instrumental in driving this shift. By increasing balance sheet leverage and adopting capital adequacy reforms, the bank has unlocked an additional $10 to $12 billion annually for lending purposes. These measures not only support climate initiatives but also extend to other global challenges such as pandemics and economic recovery.