Developing countries which rely on fossil fuels may be facing economic consequences, in addition to the much-reported environmental effects.
The World Bank recently announced its intentions to discontinue its financing of any upstream oil as well as gas projects in 2019. The statement by the international financial institution was delivered at the One Planet Summit in commemoration of the two-year anniversary of the historic Paris Climate Agreement, where the World Bank promised to “align its support to countries to meet their Paris goals.” French President Emmanuel Macron organized the influential meeting.
The announcement, which will cover all financial support given for gas and oil exploration, was made on December 12th. It’s part of an environmentally-conscious series of actions the World Bank has taken in recent years, beginning with its promise to dedicate 28% of its project portfolio to climate action by the year 2020. A video of the lengthy Plenary Session was made available:
In addition to its commitment related to financing upstream gas and oil projects, the World Bank outlined 4 additional key points:
• Expanding climate change-fighting efforts via its Climate Change Action Plan begun last year
• Creating a stronger and more consistent network of transparency and disclosure on its decarbonization efforts
• Coordinating finances specifically geared towards transformation in mitigation and climate resilience
• Forming more partnerships to coordinate work with more coalitions, members of civil society and non-governmental organizations (NGOs) that are dedicated to climate action.