World Bank Chief Will Engage With Trump on Climate Lending
(Bloomberg) -- The election of Donald Trump as President of the United States doesn’t have to throw the World Bank off course in meeting its climate targets, the anti-poverty lender’s President Ajay Banga said.
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“Let’s watch his actions, watch his deeds and work with him on explaining why these things are good for American business, for European businesses, and for everybody else,” he said in an interview with Bloomberg TV at the COP29 climate talks in Azerbaijan on Tuesday.
The world is already falling behind on its climate change goals and the re-election of Trump to the White House has raised fears that targets will move further out of reach. On the campaign trail, Trump vowed to undo many of the nation’s expansive climate policies and retreat from international diplomacy on the issue.
But Trump’s actions are more important than his words, Banga said. “Let’s start thinking about what he does as compared to what we all think he will do,” he said. “That speculation isn’t going to get us anywhere.”
Meanwhile, the World Bank is on track in meeting its own targets, said Banga. At COP28 last year the bank committed 45% of its financing for climate purposes by 2025, up from a previous goal of 35 percent. It’s currently issuing 44% of its loans for climate mitigation and adaptation projects and will hit 45% next year, he said.
It has also extended its debt relief program for predominantly small island nations that are hit by floods, droughts and pandemics, said Banga. It previously restricted the relief to borrowers affected by tropical cyclones and earthquakes.
The World Bank will launch its Frontier Opportunities Fund within the next couple of months, Banga said, and plans to make an asset class out of climate change loans in an effort to unlock investments from pension funds, insurance companies and sovereign wealth funds.
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