The International Bank for Reconstruction and Development, part of The World Bank, lends to sovereign borrowers (governments) to fund infrastructure in developing countries.
These countries will need an estimated $4 trillion per year in investments up to 2030 to build infrastructure to meet their development needs1.
Rather than focusing on individual climate projects, this sustainability linked bond takes a holistic approach to integrate climate considerations through the entire economy, sector by sector.
For example, in Angola, The Bank funds the Girls Empowerment, and Learning for All Project. Although the project is focused on improving health outcomes and reducing early drop-out rates, climate-based funding is embedded throughout the project. This includes the training of 840 school managers on climate emergencies, climate change in school curriculum and building schools designed to increase energy efficiency.
1 The World Bank, 2021. Bonds for Sustainable Development Focus on Climate. Washington: The World Bank, pp.1-25.