World Bank Promotes Green Projects in Developing Countries

The World Bank (WB) has decided to triple the guarantee funds that will become available to companies interested in investing in renewable energy projects in developing countries. In a speech at the G20 Economic Ministers Meeting in Sao Paulo, Brazil, WB President Ajay Banga said the goal is “to reach $20 billion by 2030.” “We need the resources and ingenuity of the private sector to solve major global problems. By consolidating our offerings, simplifying processes, and increasing availability, we give businesses faster and easier access to collateral security. Our new collateral marketplace is an important step towards tripling our collateral business and helping investors to do more in developing countries and accelerate the energy transition to combat dangerous climate change,” said Banga.

The World Bank currently offers about $7 billion worth of guarantees available to private businesses through the Multilateral Investment Guarantee Agency (MIGA), which also include insurance for political risks and breach of contract.

In June 2023, the World Bank launched the Private Sector Investment Lab, a research group created to identify barriers and potential solutions to renewable energy investments.