World Bank’s Climate Financing Shows Strong Private Sector Preference

June 10, 2025 - 04:08

A recent briefing has uncovered that the World Bank's Development Policy Financing (DPF) has a significant inclination towards private sector involvement in climate-related energy reforms. Between 2018 and 2023, the World Bank classified a staggering 70 percent of its energy-sector reforms as having 'climate co-benefits.' However, the findings indicate that the majority of these reforms are designed to promote a transition led by private entities rather than fostering a more equitable and inclusive energy shift.

This strong bias towards private-led solutions raises concerns about the effectiveness and fairness of the World Bank's climate finance initiatives. Critics argue that such an approach may undermine the principles of a just transition, which emphasizes the need for inclusive and equitable strategies that benefit all stakeholders, particularly marginalized communities. As the world grapples with the challenges of climate change, the implications of these findings could have far-reaching effects on global energy policies and practices, calling for a reevaluation of the World Bank's strategies in climate finance.