World Bank Group’s new Climate Change Action Plan fails to end financial flows to fossil fuels

WASHINGTON, D.C. – June 22, 2021 ( Newswire) Today, the World Bank Group released its new Climate Change Action Plan 2021-2025, which sets target timelines to align its operations with the Paris Agreement, and sets targets to increase climate finance. The plan also commits to support countries on a just transition away from coal and to reduce emissions across sectors.

The Bank’s first Climate Change Action Plan in 2016 laid out actions to expand climate investments in developing countries, but did not commit the Bank to eliminate fossil fuels from its portfolio.

The World Bank Group is the largest source of climate finance to developing countries. It also provides more support to fossil fuels than any other multilateral development bank, most of it to gas. Fossil gas, the fastest growing source of fossil fuels emissions globally, made up more than 75 percent of known fossil fuel support from multilateral development banks in 2020.

Luisa Galvao, International Policy Campaigner at Friends of the Earth U.S., issued the following statement in response:

The World Bank Group’s selective approach to phasing out fossil fuels is about as effective as throwing both water and gasoline at a house fire. With far-away Paris alignment dates, this Plan fails on both science and justice metrics.

The Climate Change Action Plan allows the World Bank Group to continue to expose the countries and communities it’s supposed to be supporting to the risks and harms of fossil fuel development.

Click for a full analysis of what the Climate Change Action Plan is missing.

Earlier this year, Friends of the Earth U.S. joined over 150 organizations in a letter calling on World Bank President David Malpass to adopt a whole-of-institution approach to end all its support for fossil fuels.

In 2016, nine multilateral development banks (MDBs), including the World Bank, committed to align their financial flows with the goals of the Paris Agreement. Despite this, the World Bank Group has provided $12 billion to fossil fuels through direct lending since then. However, that figure does not account for policy-based assistance, which has been proven to influence government tax and regulatory policies in favor of fossil fuel producers. That figure also omits the finance flowing to fossil fuels through the WBG’s increasing financial intermediaries portfolio, due to a troubling lack of data disclosure.

Friends of the Earth fights to create a more healthy and just world. Our current campaigns focus on promoting clean energy and solutions to climate change, ensuring the food we eat and products we use are safe and sustainable, and protecting marine ecosystems and the people who live and work near them.

More Info: Newswire

This news is published on the Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire and

Global investors must adhere to regulations of each country. Please read privacy policy:

Follow Us on StockTwits

image investing ideas in renewable energy stocks

Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory

Buy a renewable energy guest post on

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News


Following the minerals

September 17, 2021 ( Newswire) “Nature abhors a vacuum” is a familiar maxim in science. ...