Statement from Big Shift Global at the close of the World Bank Spring Meetings 2024

Press Release

Saturday 20 April 2024

The World Bank Spring Meetings have concluded, and climate finance has been front and centre of discussions, yet evidence suggests that despite big promises, the Bank is continuing to finance fossil fuel projects in countries most vulnerable to the impacts of the climate crisis. The Bank cannot position itself as part of the solution to the crisis whilst making it worse.

Research published earlier this month, by Oil Change International and Friends of the Earth US, demonstrated the World Bank Group (WBG) provided the most direct finance for fossil fuels of any multilateral development bank (MDB) at $1.2 billion a year on average between 2020 and 2022. At least 68% of this was for fossil gas.

This week three US Senators sent a letter to World Bank President, Ajay Banga urging it to stop funding fossil fuels and increase climate investment. In their letter, the Senators highlighted that the Bank’s direct and indirect support (such as trade finance) for fossil fuel projects ‘supercharges the climate crisis while decreasing the availability of climate financing for developing countries’.

It is disappointing to see the EBRD following in the footsteps of the World Bank to justify investments in harmful fossil gas. MDBs continue to lock developing countries into a fossil fuel future without considering the negative impacts on the most vulnerable communities. It’s time to move away from fossil fuels, not turn to them.

At the close of the meetings civil society gave the following quotes:

Ute Koczy, Urgewald, said, ‘This year’s Spring Meetings were marked by growing pressure on the World Bank Group to be more transparent. Seven months after Urgewald published a study that estimated $3.7 billion of black-box trade finance went to the oil and gas sector in 2022 alone, the Bank has failed to respond adequately. Now U.S. Senators Markey, Heinrich and Whitehouse have taken President Banga to task on the matter of transparency, too, referring to our research. The time for stalling is over, and a full disclosure of financial flows is long overdue.’

Dean Bhebhe, Powershift Africa said: “Africa has been courted to produce natural gas in the guise of economic development, which proponents claim is a transition fuel capable of catalyzing long-term economic prosperity. This is a misguided and dangerous assumption and during the meetings Ajay Banga and Dr Adesina missed an opportunity to set the record straight. There was no roadmap as to how the new energy access target will be tangibly achieved or how African voices, most affected by the energy and climate crisis, will be involved in the decision-making process. Ajay Banga did highlight that the energy crisis is a human rights crisis and this remark could be a stepping stone to operationalising human rights within the Bank's operations in the Global South.’

Dr Alison Doig, Recourse said 'Asking the fossil gas industry to engage on decarbonising energy is like asking the arsonist to put out a fire. Yes transition to renewable energy is challenging but it is far more challenging for vulnerable communities to face drought, flood, famine and storms caused by the climate crisis. The World Bank must stop pretending we can go on with business as usual, and invest in a 100% clean future'.

Sophie Richmond, Big Shift Global said ‘‘This week, the World Bank promoted the changes it is implementing within its Evolution Roadmap to become a bigger, better bank but these changes are not enough. People need a better Bank that does not ignore the mounting debt crisis, or perpetuate the band-aid of gas for exportation touted as a solution but which only caters to the interests of the Global North and not the South.’

Jason Weiner, Bank Climate Advocates said: “Considering the climate crisis, it’s remarkable IFC still is not adhering to its due diligence obligations to prevent harm under its own policies and international human rights law that require it account for and prevent avoidable GHG emissions from the projects it finances, BCA’s data documents that just 235 IFC investments from 2012-present, account for over 168,000,000 tons of avoidable GHG emissions per year, which is roughly equivalent to what the Netherlands emits annually”

Elaine Zuckerman, Gender Action said: The taxpayer-funded public World Bank Group is playing an increasingly troublesome role in climate finance by expanding its private corporate-focused International Finance Corporation (IFC) activities within its traditional public-focused windows. The IFC has an abysmal track record of financing dirty fossil fuels through opaque Financial Intermediaries – private equity funds and commercial banks -- and trade finance. This trend bodes poorly for achieving a livable planet.

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Notes to Editors

The Big Shift Global Campaign is calling on all of the world's biggest public development banks to shift finance out of dirty fossil fuels and into sustainable, renewable energy to provide energy access for all. For more info visit: bigshiftglobal.org
Big Shift Global letter published in the Financial Times 1 Nov 2023
AP photos from Big Shift gas stunt in DC 16 Apr 2024: https://apimages.photoshelter.com/galleries/C0000E6GhV9TxdvE/2024-04-16-Gas-Kills-Protest-At-World-Bank
Big Shift Global ‘Fossil Files’ video on the impacts of World Bank fossil fuel investments in Argentina, Indonesia and Egypt