World Bank Group Current Affairs
World Bank has unveiled US $200 billion in climate action investment for 2021 to 2025 to fight impact of climate change. The move coincides with Conference of Parties-24 (COP24) United Nations Climate Summit in Katowice, Poland.
The breakdown of US $200 billion will comprise approximately 100 billion in direct finance from World Bank. Around one-third of remaining funding will come from two World Bank Group agencies and rest will be private capital mobilised by the World Bank Group.
This US $200 billion in climate action investment, amounts to World Bank’s doubling of its current five-year funding. It also represents significantly ramped up ambition of World Bank to tackle climate change and sends an important signal to the wider global community to do the same. This amounts is also double of World Bank’s earlier commitment for ts current five-year funding.
It is international financial institution that provides loans to countries of the world for capital projects. Its official goal is reduction of poverty by providing loans to developing countries for capital programmes. It is one of five institutions created at Breton Woods Conference in 1944. It is headquarter is situated at Washington DC, US.
World Bank comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). It is component of World Bank Group, which also includes three more subsidiary organisations viz. International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID). World Bank is part of United Nations system, but its governance structure is different.