World Bank 'invested over $10.5bn in fossil fuels since Paris Agreement'

The World Bank Group has invested over $12 billion in fossil fuels since the Paris Agreement - $10.5 billion of which were new direct fossil fuel project finance, according to a new report.

German NGO Urgewald says the World Bank Group, which includes International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation, and the Multilateral Investment Guarantee Agency, has agreed $10.5 billion in new direct finance - new loans, guarantees, equity - for fossil fuels in 30 countries since the Paris Climate Agreement. 

Some $4 billion - or 35% - of World Bank Group fossil fuel assistance went to eight G20 countries. The group has also provided $200 million of technical assistance in 11 countries with the aim of pushing specific large fossil fuel projects forward and/or to increase future fossil fuel investments. This includes funding consultants to help market investment into Brazil’s upstream oil and gas resources.

And $1.4 billion remains in existing equity in fossil fuel operations. Until divested, the World Bank Group's equity continues to provide financial benefits to fossil fuel operations, such as lowering the cost of loans for expansions or development of new oil/gas fields. The group continues to get dividends and capital gains (or losses) from its equity in these operations. And $2.3 billion went for oil and gas exports and $650 million went to six oil refineries, Urgewald reported. 

Heike Mainhardt, Senior Advisor for Multilateral Development Banks at Urgewald, said: "The World Bank's billions in public assistance are distorting the market in favor of fossil fuels over renewable energy, which is slowing down the energy transition. Instead of creating a just energy transition, the World Bank is creating more dependency on fossil fuels."