The World Bank has lost at least $24 billion intended for combating climate change

An independent investigation by the British non-governmental organization Oxfam has revealed that the World Bank has lost track of at least $24 billion intended for financing the fight against climate change. According to Oxfam,’poor record-keeping practices’ have resulted in uncertainty about where funds amounting to between $24 billion and $41 billion.

– There is no clear public record showing where this money has gone and how it has been used, making it impossible to assess the impact of these investments, Oxfam’s report states.

The report further notes that the World Bank employs an unusual accounting practice whereby funds for climate change projects are recorded at the time of project approval, rather than at the time of completion, complicating the tracking of actual fund expenditure.

– It remains unclear whether the funds have been used for climate-related projects that should help low- and middle-income countries protect their populations from the impacts of the climate crisis and invest in clean energy, Oxfam adds.

An internal source from the World Bank stated that the actual amount of lost funds could be ‘ten times higher’.

– All figures are routinely fabricated. No one has any idea who is spending what – said the source to NYPost, who wished to remain anonymous.

According to Oxfam, the lack of transparency means that the U.S., as the largest shareholder of the World Bank with a 16 percent stake, has likely lost nearly four billion dollars. Nile Gardiner from the conservative Heritage Foundation emphasized that ‘this is an insult to American taxpayers’ and added that international institutions like the World Bank must be held more accountable for ‘wasteful spending on leftist, progressive goals’.

Despite the criticism, President Joe Biden’s administration supported an increase in the World Bank’s lending capacity by $150 billion over the next ten years last week. The United States, as a founding member of the World Bank, retains veto power over all key decisions.

The World Bank stated that it ‘does not accept these conclusions’, but emphasized the importance of collaborating with Oxfam and other civil society organizations to improve transparency in financing climate projects.

The COP Theme

Climate financing is expected to be a key topic at the upcoming COP29 in Azerbaijan, where negotiations will take place regarding a new financing goal to replace the previous target of $100 billion established in 2009. Developing countries and climate activists are already advocating for a significant increase in funding, claiming that at least $5 trillion per year is needed to mitigate the effects of the climate crisis in vulnerable regions, support the transition from fossil fuels, and cover losses and damages to communities affected by irreversible climate impacts.

According to UN data, emerging markets and developing countries (excluding China) will need to secure nearly $2.4 trillion annually by 2030 to achieve climate goals. However, the lack of tracking on the expenditure of funds for climate projects raises questions about whether existing resources are effectively directed where they are most needed.

– This is not just a bureaucratic oversight — it is a fundamental breach of trust that could jeopardize the progress needed at this year’s COP – concluded Kate Donald, head of Oxfam’s office in Washington.