Billions more in overseas aid needed to avert climate disaster, say economists

Governments of wealthy countries must pledge hundreds of billions more in overseas aid payments channelled through the World Bank to avert the worst effects of the climate crisis, civil society experts and economists have said.

The International Development Association fund, the arm of the World Bank that disburses loans and grants to poor countries, is worth about $93bn (£b75n) but that figure must be roughly tripled by 2030, according to economic experts.

“The world is facing a set of intertwined challenges: the climate crisis, debt, food insecurity, pandemics, fragility, and there is clearly a need to accelerate access to clean air, water and energy,” he said.

Todd Stern, a former climate envoy to Barack Obama, said: “The debt crisis afflicting so many low- and even middle-income developing countries needs to be addressed with vigour and resolve, including active engagement by the IMF and a willingness by China, a major creditor, to restructure loans.”

The World Bank could help by de-risking investments – for instance by providing loan guarantees or using its funds to protect private investors by agreeing to be last to be repaid.

They must get into the driver’s seat in the global energy transition, showing up as real bellwethers now by financing the projects that enable a sustainable future.”