World Bank Group and IMF Deepen Joint Effort to Scale Up Climate Action

World Financial institution Group and IMF Deepen Joint Effort to Scale Up Local weather Motion

Could 31, 2024

Washington, DC: The World Financial institution Group (WBG) and the Worldwide Financial Fund (IMF) are deepening their cooperation via an enhanced framework to assist nations scale up motion to confront the specter of local weather change.

The collaboration will present important assist for nations’ local weather methods—via an built-in, country-led method to coverage reforms and local weather investments. Inside their respective mandates, the World Financial institution Group and the IMF will leverage their analytics, technical help, financing, and coverage experience to reinforce country-driven reform packages.

Three rules will underpin the framework:

• First, nations, the World Financial institution Group, and the IMF will work collectively carefully to establish every nation’s local weather challenges—and the precedence coverage reforms wanted to deal with them. This course of shall be knowledgeable by the World Financial institution Group’s Nation Local weather and Improvement Reviews (CCDRs), the IMF’s climate-related analytics, and nations’ personal local weather ambitions.
• Second, the World Financial institution Group and the IMF will work with different Multilateral Improvement Banks and improvement companions to assist nations implement the reforms via technical help and financing.
• Third, upon request, the World Financial institution Group and the IMF will assist set up country-led platforms designed to mobilize further local weather finance, together with from the non-public sector.

The improved framework will construct on classes discovered for the reason that launch of the establishments’ Joint Assertion on Enhancing IMF-World Financial institution Collaboration in September 2023.

This enhanced cooperation between the 2 establishments will foster country-driven partnerships, impress coverage adjustments, and scale up investments to satisfy nations’ local weather wants. The joint effort may also optimize the elevated assets the establishments are dedicating to local weather motion and crowd-in further assets from improvement companions and personal sector.

The World Financial institution Group is ramping up its local weather motion with new measures together with devoting 45 % of annual financing to local weather change adaptation and mitigation by 2025, working to deliver renewable energy to 250 million folks in Africa by 2030, and increasing its disaster toolkit to assist folks on the entrance traces of the local weather disaster. The establishment has additionally optimized its stability sheet and is elevating funds for a strong IDA21 replenishment and a brand new Livable Planet Fund.

The IMF helps nations construct resilience to local weather change with assist from its Resilience and Sustainability Belief (RST), which is funded by beneficiant contributions from 23 nations. Because it turned operational in October 2022, 18 nations have already benefitted from the RST. The improved WBG-IMF collaboration framework is predicted to additional increase the affect of the SDRs channeled via the RST.