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World Bank chief defends its natural gas investments
Banga said changes undergoing at the bank could boost its funding capacity to $150 billion over the next decade, though he warned it would still not be enough.
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World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank, following last month's deadly earthquake, in Marrakech, Morocco, October 10, 2023. (Reuters/SUSANA VERA)
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orld Bank President Ajay Banga said Tuesday the global lender has dramatically cut its funding of fossil fuel projects but defended its investments in natural gas, even as the bank eyes reforms to battle climate change.
Reforming the World Bank and the IMF to better address climate change and other global challenges is at the top of the agenda as the sister institutions hold their annual meetings in Marrakesh, Morocco, this week.
Banga said changes undergoing at the bank could boost its funding capacity to $150 billion over the next decade, though he warned it would still not be enough.
"After we deliver a better bank, we will need a bigger bank," he said at a town hall with civil society organizations.
Banga took over the job in June from David Malpass, who stepped down early from his five-year term amid questions about his stance on climate change.
In Marrakesh, the Indian-born, naturalized US citizen was grilled by members of non-governmental organizations about the bank's continuing funding of fossil fuel projects.
Banga said the bank had only allocated $170 million to natural gas last year out of $120 billion it committed.
The World Bank has "dramatically" reduced investments in fossil fuels since 2019 and has not directly funded coal plants since 2010, he said.
Its financing of renewable energy projects, meanwhile, has tripled to $39 billion over the past 10 years.
"What we're trying to do is to reduce the investment in fossil fuels," Banga said.
But he said poorer nations still need natural gas for their development.
He said a discussion needs to be had about the role that natural gas, which pollutes less than oil or coal, should play in the energy transition.
"We are of the belief that it plays a role, but a very small role," he said.
