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World Bank criticized for ‘lack of action’ on climate change

The World Bank, led by president David Malpass, pushed for a joint statement by development banks at the United Nations COP26 climate summit to be shortened and weakened, according to people with knowledge. know about the negotiations.

The international financial institution provides loans and grants to poorer countries and is seen as crucial in distributing money to the developing world to help limit global warming as those economies grow.

It has come under attack from the United Nations as well as climate change experts, such as former US vice president Al Gore, who said at a recent Financial Times conference that the World Bank has “lacking in action“On climate and “need new leadership”.

Tough negotiations among the group of development banks over their COP26 commitments ended with the issuance of statement does not include any specific goals or deadlines.

“Malpass is the main block. . . he doesn’t think this is a priority,” said a person familiar with the negotiations.

In an email to other banks, seen by the FT, a World Bank Group representative said Malpass had made it clear he “did not want a lengthy joint statement”. Instead, he suggested “a very short statement,” which individual banks could come with an addendum detailing their own “plans for the future,” the email said.

An earlier four-page draft statement, also seen by the FT, had said that banks would “shift finance to low-carbon, climate-resilient development” and help countries “adjust their budgets.” their country” with the goals of the Paris accords. the ideal is to limit global warming to 1.5 degrees Celsius above pre-industrial levels.

The two-page final statement said the organizations would “build our track record of supporting” such low-carbon investments, and flout budget commitments.

Other wording in the draft not included in the final statement include that “the years to 2030 are critical” and that “financial flows must urgently be implemented in line with the goals of the Paris Agreement. “.

The World Bank “strongly disagrees” that it pushed for a weaker or less ambitious commitment. “There is no consensus among MDBs [multilateral development banks] to announce commitments beyond what they have already announced or are about to announce,” it said.

The signatories to the joint statement include the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank and the European Bank for Reconstruction and Development.

At COP26, Selwin Hart, special adviser to the United Nations Secretary-General on climate action, praised the World Bank Group as “an underperforming institution” on climate change.

It is “shocking and deeply disappointing” that the organization has not committed to adjusting its funding to limit warming to 1.5C, he said.

Instead, the World Bank Group promised in June climate plan to align much of its financing by 2023 with Paris’ less ambitious goal of limiting warming to “below” 2C.

In a letter to the FT, the World Bank Group said Hart’s criticism “does not accurately reflect our climate leadership,” noting that it is the largest multilateral supplier belong to climate related finance.

However, the team opted out of many other countries and development banks commitment at COP26 end public funding of coal, oil and gas abroad by the end of 2022. Its June plan does not include a deadline to phase out direct and indirect fossil fuel financing.

Climate expert ask questions about environmental information of Malpass when he was appointed in 2019, after being nominated by then-US President Donald Trump.

During a 2010 debate for the Republican nomination, former economist Bear Stearns said he didn’t believe carbon dioxide generated by human activity was warming the planet, according to a report by the United Nations. Associated Press about the event.

When ask in 2018 Whether development banks should fund renewable energy instead of carbon-intensive projects, Malpass, then a US Treasury official, said: “I don’t know if that complements fig. . . Legislation is needed in this regard. “

In October, a researcher at the World Bank wrote in a piece of opinion that Malpass “has neither the vision nor the credibility to make the World Bank a climate leader”.

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