Washington, DC, September 23, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, AAA / Aaa) is raising awareness of the urgent need to integrate climate change considerations into all activities and decisions. As part of a plan to issue $ 10 billion sustainable development bonds, the World Bank will engage with investors to highlight the World Bank’s holistic approach to mainstreaming climate action.
As detailed in its recently updated Climate Change Action Plan, the World Bank helps countries integrate climate change into their development strategies and apply climate finance in ways that achieve the most positive impact. Applying a “whole-to-the-economy” approach with clients in developing countries helps the World Bank to mainstream climate considerations across its portfolio, including high-emitting sectors as well as sectors that are generally not associated with climate action, such as health, education, trade and governance.
“Left unchecked, climate change will push 130 million people into poverty over the next decade. We must mobilize everyone and all we can to reverse current climate trends and in doing so we must support vulnerable communities and help them adapt ”, noted Anshula Kant, Chief Financial Officer of the World Bank Group. “To reach the necessary scale, we need to go beyond simple green projects to support the greening of entire economies. With investor engagement around our own emissions and climate strategy, we hope to show investors why a similar holistic approach is essential for the markets ”, she added.
In 2020, the World Bank provided more climate finance than ever. Over 90 percent of all IBRD projects had climate components, accounting for 33 percent of all commitments by value. Recognizing that communities in developing countries are often the most vulnerable to the impacts of climate change, including droughts, floods and coastal erosion, the World Bank has committed to devote at least half of its climate finance to climate change. adaptation to climate change and to help its members become more resilient. .
Jingdong Hua, Vice President and Treasurer, noted, “The World Bank’s Sustainability Bonds offer investors the opportunity to support positive climate impacts in developing countries through liquid investment with high credit quality. As previous World Bank investors have done through sustainable development bond themes such as water and oceans, gender, health and nutrition, and food loss and waste, their participation is a testament to of their commitment to tackle global challenges head-on. We are excited to launch this initiative and look forward to working with investors ahead of COP26. “
The World Bank’s Sustainable Development Bonds provide funding for World Bank projects and programs in its member countries, including those aimed at achieving the goals of its Climate Change Action Plan. The World Bank mobilizes the capital of member governments to raise funds in the capital markets from private entities such as asset managers, pension funds, bank treasuries and official institutions.
“When issuing sustainability bonds, we highlight the next step in how we, as a lending institution, ensure that all of the World Bank’s activities maximize mitigation and recovery efforts. adaptation to climate change.“, noted Bernice Van Bronkhorst, Global Director, Climate Change, World Bank. “In addition, the funds raised will then be used to finance all of the World Bank’s development activities, which are now also aimed at a greater climate impact. This is the kind of holistic approach our recently announced climate change action plan is pushing forward. “
With annual emissions between $ 50 billion and $ 60 billion, all of the World Bank’s bonds fund programs that support the Sustainable Development Goals. The World Bank’s Sustainability Bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Markets Association (ICMA). A key priority for the World Bank’s engagement in capital markets is to encourage investors to take a holistic approach to mainstream climate and sustainability into all of their decision-making, while establishing strategic partnerships to raise awareness of the role of private sector finance in development.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa / AAA (Moody’s / S & P), is an international organization. Established in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 countries. The World Bank provides loans, guarantees, risk management products and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals, end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainability bonds in international capital markets for more than 70 years to finance programs and activities with positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
World Bank bonds support the financing of programs that advance the Sustainable Development Goals (SDGs). The World Bank’s bonds are aligned with the Sustainable Bond Guidelines published by the International Capital Market Association and, as such, support the funding of a combination of green and social projects, programs and activities, that is that is, “sustainable development”, in IBRD member countries, as described in the World Bank’s Sustainable Development Obligations Framework. The World Bank is also a member of the executive committee of the Green Bond, Social Bond and Sustainability Bond principles. A key priority for the World Bank’s engagement in capital markets is to establish strategic partnerships with investors to promote the importance of private sector finance in sustainable development. The World Bank Sustainability Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness of specific development challenges.
The net proceeds of the obligations described herein are not incurred or used to lend or finance any particular projects or programs, and the returns on the obligations described herein are not tied to the performance of any particular project or program. .
This press release does not constitute an offer to sell securities of the International Bank for Reconstruction and Development (“IBRD”), also known in the capital markets as the “World Bank”. Any offering of World Bank securities will be made solely on the basis of the relevant offering documentation, including, but not limited to, the prospectus, term sheet and / or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank. Bank, and is subject to restrictions under the laws of several countries. World Bank securities may only be offered or sold in accordance with all of these laws. The World Bank’s Sustainable Development Obligations Framework and the information set forth therein are not part of or incorporated by reference in the Offer Documentation.
Head of Investor Relations and Sustainable Finance
World Bank Treasury