World Bank Announces ISO-14001-Inspired $200-billion Climate Action Investment Fund
The World Bank has announced it will spearhead a five-year, $200-billion fund to fight climate change; doubling its previously announced investment plan.
Following a UN climate summit with two-hundred nations in attendance in Poland, the 200% increase in climate funding represents a “significantly ramped up ambition” to curb the impact of a rapidly changing climate, “sending an important signal to the wider global community to do the same.”
The investment is slated to take place between 2021-25.
“Climate change is an existential threat to the world’s poorest and most vulnerable. These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change,” World Bank Group President, Jim Yong Kim said.
“We are pushing ourselves to do more and to go faster on climate and we call on the global community to do the same. This is about putting countries and communities in charge of building a safer, more climate-resilient future.”
Additional capital provided by the investment plan would be implemented to boost support for “adaptation and resilience, recognizing mounting climate change impacts on lives and livelihoods, especially in the world’s poorest countries.” According to a statement from the World Bank.
The $200-billion figure will be made up of $100-billion in direct finance from the World Bank, and another $100-billion of combined direct finance from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency, as well as private capital sourced by the World Bank Group.
"If we don't reduce emissions and build adaptation now, we'll have 100 million more people living in poverty by 2030," John Roome, World Bank senior director for climate change, warned.
"And we also know that the less we address this issue proactively just in three regions - Africa, South Asia and Latin America - we'll have 133 million climate migrants," Roome told AFP.
In response to the announcement, ISO has announced the formation of a new Sustainable Finance technical committee, aimed at “foster[ing] a sustainable investment market through the development of new International Standards.”
Mike Henigan, secretary of the new committee says “this will involve bringing together expertise on existing standards, harmonizing and clarifying what sustainable finance really I, and providing common terminology and international best practice and guidelines on putting processes in place.”