Despite concerns over the potential impact of Donald Trump’s re-election on global climate goals, World Bank President Ajay Banga remains optimistic, Bloomberg reports.
“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,” Banga said at the COP29 climate talks in Azerbaijan.
Trump’s campaign promises to undo climate policies and withdraw from international climate agreements have sparked fears that progress on climate change targets will be further hampered. However, Banga emphasizes the need to focus on Trump’s actual actions rather than speculation. “Let’s start thinking about what he does as compared to what we all think he will do,” he said.
Meanwhile, the World Bank remains committed to meeting its own climate targets. Last year at COP28, the institution committed to dedicating 45% of its financing to climate-related projects by 2025, an increase from its previous target of 35%. Banga confirmed that the World Bank is on track to reach this goal, currently issuing 44% of its loans for climate mitigation and adaptation projects and aiming to hit 45% next year.
The World Bank has also expanded its debt relief program to include small island nations affected by floods, droughts, and pandemics, going beyond its previous focus on tropical cyclones and earthquakes.
Banga announced that the World Bank will launch its Frontier Opportunities Fund in the coming months. This fund aims to create a new asset class for climate change loans, attracting investments from pension funds, insurance companies, and sovereign wealth funds.
