World Bank invests nearly $15bn in fossil fuels in defiance of Paris Agreement

Photo by: HHakim / iStock

Since the Paris climate agreement was signed in 2015, the World Bank (WB) has committed almost $15 billion to fossil fuel projects and has likely stimulated much more investment in the oil and gas industry. This is according to a study prepared by Big Shift Global, a coalition of more than 50 non-governmental organisations (NGOs).

The Guardian reports that the NGO specialists found evidence of financial support for oil and gas processing from both the World Bank and its subsidiaries.

According to one of the report’s authors, Kat Kramer, the World Bank takes the lead and has an enormous amount of leverage, but the study found that the organisation has often not used it to improve the climate situation.

Many of the sources of fossil fuel finance disclosed in the report relate to gas projects which, according to some countries, could provide the world with a transition period between coal and renewable energy.

Kat Kramer called such a position misguided, citing a study that said new gas development should not be allowed because it would frustrate climate goals to keep global warming within 1.5 °C.

“Methane [the main fuel component from natural gas] is about 80 times stronger than carbon dioxide in terms of its impact on the climate. Any leakage of it ends up in the atmosphere, and this also applies to liquefied natural gas,” the expert warned.

A representative of Big Shift Global added that it would not make much sense to finance gas projects if alternatives in the form of renewable energy were cheap and widely available.

Many countries and supporters of environmental initiatives have been unhappy with the WB’s passive stance on climate in recent years. The financial institution’s policies have been linked to its president, David Malpass, who was appointed in 2019 by then US president Donald Trump.

According to experts, the Big Shift Global report could shake the position of the current WB head in his position, as the World Bank’s annual meetings will be held in October to discuss the financial institution’s future strategy.

Cover photo: Matt Pierce / iStock