Wednesday, January 4, 2023

G20 looks to the World Bank for climate financing for developing economies

G20 looks at World Bank for climate fin to emerging ecos


 

Delhi, India: The G20 nations are discussing the possibility of establishing a dedicated multilateral finance institution to close the funding gap or getting the World Bank to provide climate finance to emerging economies.


Concerns have been raised that developed nations have not provided sufficient financial assistance to assist developing nations in making a swift transition to clean energy without causing the same damage to advanced economies as they developed. Sources told TOI that the possibility of establishing a development bank solely for climate finance has been discussed, but the issue needs to be thoroughly investigated, and it may be challenging to implement it with only one goal.


India is one of the developing nations that has accused advanced economies of failing to fulfill their promise to fund the massive transition. The United States and other nations favor bringing in an existing multilateral agency, most likely the World Bank.


Reforming the World Bank and other multilateral institutions is one area where there is a lot of agreement. There is a shared priority on one, which shifts the institutions' attention from development objectives to public issues like climate change. That would mean expanding loaning to center pay nations to help India, Brazil, other key nations in battle against environment change,to answer," Mike Pyle, the US appointee NSA and Sherpa to G20, had told TOI during his outing to India for the primary gathering of Sherpas in Udaipur last month.


Low- and middle-income economies received climate finance worth approximately $51 billion in 2021 from multilateral development banks (MDBs), or 62% of the total MDB climate finance. More than $17 billion (35%) went toward climate change adaptation, while more than $33 billion (65%) went toward climate change mitigation. According to the information that they made available, there was $13 billion in mobilized private finance.


In addition, in 2021, MDBs provided high-income economies with more than $31 billion in climate finance, representing 38% of all MDB climate finance. Of this, $29 billion (95%) was devoted to climate change mitigation, and $1 was provided. 6 billion (5%) for environmental change transformation. $28 billion in private finance had been mobilized.

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