Trust funds and FIFs are part of this push for increased climate action. They play an important role in the provision of concessional funding to scale up climate investments, help countries in their quest for climate adaptation, and incentivize faster decarbonization. The World Bank uses trust funds in tandem with its core financing, as well as with climate-related FIFs, to address global climate challenges and support countries’ sustainable development efforts.
The volume of recipient-executed (RE) disbursements from IBRD/IDA trust funds going to climate and other environment-related activities has increased annually for the last five fiscal years of 2019–23 (Figure 2.1). Climate-related RE investments during this time frame totaled $2.5 billion, of which $1.4 billion, or 56 percent, were for mitigation activities, and $1.1 billion, or 44 percent, were for adaptation activities (Figure 2.2). Two-thirds of all RE climate-related disbursements were contributed by development partners, while the other one-third consisted of transfers from FIFs implemented by IBRD/IDA.
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