As part of its plan, the international financial institution has set out a goal to double its current contributions to global renewable energy capacity, aiming to add 30 gigawatts of renewables by 2020.
According to a statement, the World Bank said that its wants to de-risk investments in renewable energy through policy advice, regulatory reforms, direct investment funding and guarantees. Based on these factors, the Bank aims to have added in excess of 20GW in renewable energy capacity over the next five years.
Laura Tuck, the World Bank Group’s vice president for Sustainable Development commented saying, “The World Bank is in a unique position to work with countries to develop the solutions that build their resilience to climate impacts, protect their people and environment, and reduce their emissions.”
In order to accommodate the increased amount of renewable energy coming online, the World Bank will also support related infrastructure and systems. Some of the clean energy projects planned include allocating funds for smart grids, hydro and battery storage as well as natural gas generation to support renewable energy intermittency.
Leveraging private sector funds
[quote] The World Bank’s plan will also have a specific focus on leveraging private sector funds to accelerate clean energy projects, and aims to mobilise US$25 billion of commercial funds during the 2016 financial year.
Energy Matters adds that International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will support growth in large hydropower and grid connected wind energy and solar power projects.
John Roome, senior director for Climate Change at the World Bank Group, stated: “With the Action Plan, we will be helping countries to integrate climate change into their national policies, planning and budgeting; and to mobilize financing and use it for maximum impact.”
Apart from its charter toward doubling renewable energy capacity, the World Bank is also supporting resilience efforts against the adverse effects of climate change events, such as drought and flooding.
To this end, the plan includes climate-smart agriculture investment roadmaps for at least 40 countries.
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