WASHINGTON DC – In a major step to combat climate change, the World Bank Group announced it will increase its annual funding for climate projects by $9 billion, to 45% of its budget. This commitment is part of the global financial community's response to the COP26 agreements, which aim to increase countries' resilience to climate-related challenges.
The Asian Development Bank (ADB) has also unveiled an ambitious plan, committing to investing $100 billion by 2033 to strengthen the Asia-Pacific region's response to climate change. This investment will support various initiatives, from reducing emissions to adapting infrastructure to extreme weather events.
Likewise, the Inter-American Development Bank Group (IDB) has set a goal of providing $150 billion to facilitate Latin America's transition to a green economy. The IDB focuses on the conservation and sustainable management of the Amazon rainforest, a biome critical to global biodiversity and carbon storage.
Multilateral development banks (MDBs) have jointly agreed on a moratorium on debt repayments during climate emergencies. This measure is intended to provide financial relief to countries affected by natural disasters and allow them to prioritize immediate recovery efforts without incurring the additional burden of repaying their debts.
In addition, the MDBs are working together to standardize climate finance reporting. The aim is to create a transparent and coherent framework that attracts private sector investment. In this way, these banks aim to drive sustainable economic growth and ensure that financial flows are aligned with low-carbon and climate-resilient development paths.
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