Business Insider reports that the World Bank will be phasing out its financial support for the oil and gas industries, bringing the institution more in line with its pledge to curb the effects of climate change and help the Paris accord maintain its direction.
The World Bank offers about $60 billion annually in assistance to developing countries.
The bank has signaled that the international community is taking the fight against global warming more seriously than ever. And it shows that the bank intends to keep playing a leading role in that battle at a time when its most powerful shareholder, the US, is turning its back on global environmental leadership.
World Bank President Jim Yong Kim began shifting the institution toward climate change action after taking the reins in 2012. Under his leadership the bank has made several initiatives:
- In 2013, the bank ceased financing construction of new coal-fired power plants, except for areas where other options were not viable.
- In 2016, the World Bank committed to making 28 percent of all of its transactions advance climate action by 2020.