World Bank Loses Track of $24 Billion in Climate Funding

A recent report by Oxfam has revealed that approximately $24 billion to $41 billion in climate funds allocated by the World Bank remains unaccounted for, which could represent about 40% of all climate financing provided to the institution between 2017 and 2023.

The audit highlights significant deficiencies in record-keeping practices, preventing any clear assessment of how these funds were utilized. This lack of transparency raises concerns about whether the money was actually spent on initiatives related to the World Bank’s stated goals, such as clean energy projects and climate adaptation efforts for low- and middle-income countries.

An anonymous insider within the World Bank suggested that the amount of missing funds could be ten times higher than Oxfam’s estimates. Kate Donald, head of Oxfam International’s Washington D.C. Office, criticized the World Bank for its tendency to promote its climate financing figures without providing proper accountability

She likened this practice to evaluating a diet based solely on a grocery list, rather than examining what ultimately ends up being consumed.

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Furthermore, the report points out that the complexity and incompleteness of the data made it extremely difficult for Oxfam researchers to uncover the truth about the funding’s actual allocation. Donald emphasized that the opacity surrounding this information is alarming, asserting that understanding how billions of dollars earmarked for climate action are spent should not require extensive research.

The World Bank is recognized as the largest single provider of climate finance, accounting for 52% of all funds distributed by multilateral development banks. In response to Oxfam’s findings, a spokesperson from the World Bank stated that while they dispute the report’s conclusions, they appreciate their ongoing engagement with Oxfam and other civil society organizations in promoting greater transparency in their climate work.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.