World Bank to Stop Funding Oil, Gas in 2019


The World Bank has announced that it will no longer offer financial support for gas and oil exploration after 2019, citing a need to change with a rapidly changing world.

The announcement, made at the One Planet Summit called for by French President Emmanuel Macron, is part of the World Bank’s previous commitment to dedicate 28 percent of its portfolio to climate action by 2020.

World Bank Announcement

According to France 24, the World Bank’s mandate is to provide financing and assistance to help the economic advancement of developing countries.

In light of the recent announcement, an exception will be made for the consideration of financing upstream gas in the poorest countries, where “there is a clear benefit in terms of energy access for the poor and the project fits within the countries' Paris Agreement commitments," the Bank said in a statement.

In general, however, it has become cheaper to build renewable energy options, rather than continuing to maintain existing coal power plants.

The announcement came on the two-year anniversary of the Paris Agreement.

Working Together

The one-day summit, co-sponsored by the World Bank, was geared toward finding funding for shifting the global economy away from using fossil fuels, to more earth-friendly alternatives. There was also a focus on finding ways to shore up defenses against climate change-related weather disasters. According to France 24, trillions must be invested in order to meet the Paris Agreement’s goal of limiting average global warming to 3.6 degrees Fahrenheit over pre-Industrial Revolution levels.

Earlier this year, President Donald J. Trump announced the withdrawal of the United States from the Paris Agreement, even though the U.S. remained influential throughout the Agreement.

On the other hand, while China is currently the largest net carbon polluter, the country has shut down 40 percent of its factories to curb carbon emissions, and is also on track to switch all of its vehicles to electric, as well as build carbon-capturing plants.

The country’s emissions output has flattened since 2013.


Tagged categories: AF; AS; Asia Pacific; EMEA (Europe, Middle East and Africa); Emissions; Energy efficiency; EU; Green design; Latin America; NA; North America; OC; Program/Project Management; SA

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