Online Media Briefing Center (OMBC) news for accredited journalists
Highlights
In a significant move to bolster global development efforts, Norway has announced its early pledge to the International Development Association (IDA) during the 19th Heads of State and Government Summit of the Group of 20 (G20) taking place in Rio de Janeiro, Brazil. This pledge reflects Norway’s commitment to supporting low-income countries in their pursuit of poverty reduction, sustainable development and resilience against global challenges.
Domestic food price inflation remains high in many low- and middle-income countries. Inflation higher than 5% is experienced in 70% of low-income countries (6.2 percentage points lower), 47.8% of lower-middle-income countries (3. percentage points lower), 36% of upper-middle-income countries (2.0 percentage points lower), and 9.1% of high-income countries (0.2 percentage points higher).
The Government of Poland has pledged to increase its contribution to the World Bank’s IDA by 100% compared to its previous IDA contributions, demonstrating its continued dedication to international development.
1.2 billion people face life-changing risks through exposure to at least one critical climate hazard, such as heatwaves, flooding, hurricanes, and drought. However, a new report from the World Bank Group outlines how faster development and sustainable economic growth can reduce climate change-related economic and quality of life losses.
Multilateral development banks (MDBs) today issued a joint statement at COP29 in Baku outlining financial support and other measures for countries to achieve ambitious climate outcomes. MDBs estimate that by 2030, their annual collective climate financing for low- and middle-income countries will reach USD 120 billion, including USD 42 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.
In response to feedback from countries, the World Bank’s Climate Resilient Debt Clause (CRDC) now covers all natural disasters, including droughts, floods and health emergencies like pandemics. Previously, two types of natural disasters— tropical cyclones and earthquakes—were eligible under the CRDC, which allows eligible countries to defer principal and/or interest repayments on IBRD and IDA loans for up to two years.
Global commodity prices are set to tumble to a five-year low in 2025 amid an oil glut that is so large that it is likely to limit the price effects even of a wider conflict in the Middle East, according to the World Bank’s latest Commodity Markets Outlook. Even so, overall commodity prices will remain 30% higher than they were in the five years before the COVID-19 pandemic.
The guarantee falls under a new Portfolio Guarantee Platform with leveraging ability that allows Japan’s $1 billion commitment to enable new funding of $6 billion over 10 years. The platform permits shareholders with high credit ratings to step in if a borrower fails to pay back a loan from the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group.
