WASHINGTON — The International Monetary Fund (IMF) and the World Bank Group announced on Friday that they have strengthened their collaboration to support global climate action efforts. The partnership aims to assist countries in expanding their climate change strategies through a newly enhanced framework. This framework is designed to facilitate comprehensive, country-led policy reforms and climate investments.
According to Philippines News Agency, this collaboration will utilize the World Bank Group and the IMF's combined resources in analytics, technical assistance, financing, and policy expertise. The focus is on supporting country-driven reform programs within their respective mandates. The newly outlined framework adheres to three core principles: identifying specific climate challenges and necessary policy reforms for each country, collaborating with other Multilateral Development Banks and partners to implement these reforms through technical assistance and financing, and establishing country-led platforms to increase climate finance, including contributions from the private sector.
Further commitments include the World Bank Group's pledge to allocate 45 percent of its annual financing to climate adaptation and mitigation by 2025. It also plans to bring renewable energy solutions to 250 million people in Africa by 2030 and to enhance its crisis management tools to aid those most affected by climate challenges. On the other hand, the IMF will focus on increasing countries' resilience to climate change through its Resilience and Sustainability Trust, supported by 23 countries.