Updates continued

A summit held in Paris aimed at addressing climate change and poverty concluded without reaching an agreement on implementing a tax on greenhouse gas emissions from international shipping. The two-day gathering, hosted by French President Emmanuel Macron and attended by world leaders and finance officials, including representatives from the US, China, Brazil, and the European Commission, focused on the creation of a new global financing pact. While the idea of a global tax on shipping emissions has gained support and could be adopted by the International Maritime Organization in July, Macron suggested that China and the US were not in favor of the proposal. The tax would generate funds to assist developing countries in tackling climate change. Although no formal decisions were made at the summit, the International Monetary Fund made $100 billion worth of assets available to vulnerable countries, and debt relief for poor nations was discussed. However, proposals for taxes on the fossil fuel industry and financial transactions received limited support from wealthy nations.

Source:

• Al Jazeera

World leaders will convene in Paris for the Summit for a New Global Financial Pact, which seeks to address the challenges posed by climate change and devise innovative approaches to global financing. Over two days, heads of state and government will discuss various ideas, including levies on shipping, fossil fuels, and financial transactions, as well as reforms to international financial institutions. The French Presidency views the summit as a platform for sharing ideas before upcoming economic and climate meetings. Developing nations, particularly the V20 group representing countries at the forefront of climate impacts, are eager to see tangible progress and a restructuring of the global financial system to align with climate goals by 2030. Trust in financing commitments from wealthier nations is limited. The summit aims to provide political momentum for an international carbon emissions tax on shipping, establish clear timelines, and take concrete actions. Concerns arise as leaders from wealthier countries have limited attendance, raising questions about unity and commitment to reform. The World Bank plans to increase lending capacity, and there is growing support for redirecting subsidies from fossil fuels to climate initiatives. The summit intends to bridge the gap between aspirations and implementation, fulfill existing promises, secure additional financial resources, address debt issues, and advocate for reforms in line with climate and biodiversity objectives. However, there is a disparity between the summit's stated ambitions and the actual execution of its goals.

Source:

• Euractiv

Experts have identified an organized campaign involving fake social media profiles spreading propaganda messages about Cop28 and defending the United Arab Emirates (UAE) against criticism. These profiles, posing as individuals from the UAE, publish similar positive content and engage in replies to campaigners and journalists. Around a hundred profiles engaged in such behavior have been identified, some of which were suspended by Twitter after being exposed. However, many others are still active, having transformed into different personas overnight. Analysis of these profiles suggests a coordinated attempt to promote the UAE, particularly regarding Cop28 and other UAE policies. While proving the identity of those behind the accounts is challenging, it is suspected that a PR firm working for an entity in the UAE may be running this operation. Some of the fake accounts mimic the language used by the UAE government or post identical tweets. The activities of one example, 'Viyan Mahmud,' were closely examined, demonstrating a pattern of posting similar messages to the official Cop28 account. After being exposed, this account underwent a complete makeover and changed its name to 'Amina Mahi.' Similar instances of fake profiles acting together to counter criticism have been observed. The Cop28 hosts, including Sultan Al Jaber, have faced previous criticism, such as his appointment as the climate summit's head and the invitation to Bashar al-Assad. The UAE's promotion of phasing out "fossil fuel emissions" instead of fossil fuels has also drawn scrutiny. The Cop28 hosts have previously been accused of attempting to control the online narrative, including editing Wikipedia pages related to Sultan Al Jaber's role as an oil executive.

Source:

• Climate Home News

Insurers' attempts to price climate risks are being disrupted by "political attacks," according to a coalition of financial groups backed by the United Nations. The statement came after five insurers, including QBE Insurance, Allianz, AXA, SCOR, and SOMPO Holdings, withdrew from the Net-Zero Insurance Alliance (NZIA) within a 24-hour period following pressure from U.S. Republican attorney generals who accused them of violating antitrust laws. The departure of these insurers, along with four others, has raised concerns about the viability of the NZIA, which requires members to commit to achieving net-zero greenhouse gas emissions in their investment portfolios by 2050. The CEO of Lloyd's of London, John Neal, has urged the alliance to revise its membership rules to prevent further departures. Despite these challenges, some NZIA members, including Aviva, are urging the alliance to continue its efforts. The UN-backed Glasgow Financial Alliance for Net Zero (GFANZ), led by former Bank of England Governor Mark Carney, plans to engage with remaining NZIA members individually to find a resolution. Republican politicians have been campaigning against financial institutions collaborating on carbon emissions reduction, as part of a wider backlash against businesses incorporating environmental, social, and governance factors in their decision-making. While legal experts believe it would be difficult to make a legal case against insurers for violating antitrust laws, the insurers are concerned about confronting U.S. Republicans. The NZIA now has 22 members, and GFANZ is committed to supporting insurers' climate risk management and transition plans despite the challenges.

Source:

• CNA

The Group of Seven (G7) summit, hosted by Japanese Prime Minister Fumio Kishida, has expanded its guest list to include more countries beyond its traditional members. This expansion aims to strengthen ties with middle-power countries and those in the Global South, as the forum seeks to address global challenges such as Russia's war in Ukraine, China's rise, food security, and climate change. While the G7 traditionally consists of the United States, Canada, Japan, the United Kingdom, France, Germany, Italy, and the European Union, non-member countries like India, Poland, and Spain have been invited in previous years. In the current summit, leaders from 16 countries, along with the EU, are attending. The G7's efforts to pressure Russia on the Ukraine conflict have faced limited international support, with most countries choosing not to take sides. While the G7's share of the global economy has decreased over the years, Japan aims to strengthen its ties with the Global South, recognizing its growing market share and GDP contribution. The expanded focus of the G7 reflects a recognition of the need for greater inclusivity and the amplification of voices from the neglected Global South. However, critics argue that the G7's interest in involving the Global South may be insincere, citing issues like debt repayments and inadequate aid and funding for climate action. Oxfam International has highlighted the disparity between the demands of G7 countries for debt repayments from low and middle-income countries, despite owing significant unpaid aid and climate funding themselves. The organization emphasizes that the rich world owes the Global South in terms of unfulfilled promises, climate damage costs, and the historical legacy of colonialism and slavery.

Source:

• Al Jazeera

The European Union (EU) has gained support for its call for the world to set a target to triple renewable energy capacity by 2030 at a meeting of 40 global climate officials in Berlin. Supporters of the proposal, which has not met significant opposition, include the United Arab Emirates, the US, Chile, Colombia, and representatives of small island states. The head of the EU’s Commission, Ursula Von der Leyen, first suggested global renewable and energy efficiency targets at a US-hosted climate summit two weeks ago. The tripling target is based on work carried out by the International Energy Agency (IEA) and the International Renewable Energy Agency (Irena). The IEA has said that the world currently has about 3,300 GW of renewable energy capacity, and in order to limit global warming to 1.5C, about 1,000 GW should be added every year to 2030, roughly tripling the total amount to 10,350 GW. While the renewables target did not meet significant opposition, a proposal to phase out fossil fuels is much more controversial. Chile’s environment minister Maisa Rojas has said that renewable and energy efficiency targets have to go “hand in hand” with the phase-out of fossil fuels.

Source:

• Climate Home News

Germany's leader Olaf Scholz has pledged €2bn ($2.2bn) to the United Nations' Green Climate Fund to support climate investment during 2024-2027. The fund, established in 2010, is designed to distribute money from wealthy countries to climate projects in low- and middle-income nations. It has spent about $12bn on funding climate projects to date, but has warned of cutbacks due to a lack of resources. Scholz's pledge, announced at the Petersberg Climate Dialogue in Berlin, sets the bar for other wealthy nations ahead of the fund's regular pledging conference in Bonn in October. The commitment is a third higher than Germany's previous contribution. Austria has made a pledge of €0.16bn. Joe Thwaites, a climate finance campaigner at the National Resources Defense Council, said the move was a "critical signal of support to developing countries" and "sets a benchmark for other countries who also need to step up with increased contributions".

Source:

• Climate Home News

The World Economic Forum’s Future of Jobs report has revealed that green roles have outpaced the overall hiring rate globally for the last four years, making them a safe bet in a cooling labour market. LinkedIn data shows that jobs in sustainability, such as sustainability analysts, specialists, and managers, are among the fastest-growing roles globally over the same period. However, the demand for green talent far exceeds the supply, as only 13% of the labour workforce has the green skills that organisations require. Even though global demand for green skills has risen by 40% since 2015, we aren’t upskilling professionals quickly enough to meet net-zero targets.

Furthermore, many green skills are used in non-traditionally green jobs such as fleet managers, data scientists, or health workers, indicating the potential to transform working lives. Green skills are also helping transform fossil fuel-heavy sectors in high-emission countries like manufacturing, oil and gas, and mining, which have the highest levels of “green skill intensity”. Germany is adopting more green skills in its manufacturing industry than the global average, while India and the US lead the way in the oil and gas, and mining sectors.

However, sustainability is non-negotiable, and job seekers are increasingly considering a company's culture and values, with 26% of adults surveyed in Europe stating that sustainability is one of their top non-negotiables when evaluating a company's culture and values. To manage this green labour market transition, we need more workers with green skills and need them urgently. Policy-makers must commit to green skills, businesses must invest in upskilling current and future green talent, and the global workforce must build green skills to power change and compete for the best jobs. LinkedIn has made available free courses to help professionals learn how to be more sustainable at work and at home, as well as how companies can embrace sustainability as an opportunity to innovate their businesses. To save the planet, we must put climate change at the center of discussions on the state of the labor market and the future of jobs.

Source:

• World Economic Forum

The European Parliament has approved a significant overhaul of the EU’s carbon market and climate change policies. The deal includes a revamp of Europe’s carbon market, which will increase the cost of polluting across the continent. Since 2005, the market has reduced CO2 emissions from power plants and factories by 43%. However, the changes are aimed at hitting more ambitious EU climate change targets. The upgrade will mean that factories lose the free CO2 permits they currently receive by 2034, and shipping emissions will be added to the CO2 market from 2024. The reforms will also introduce the world’s first carbon border levy. From 2026, a levy on imports of high-carbon goods will target imports of steel, cement, aluminium, fertilisers, electricity, and hydrogen. The carbon border adjustment border mechanism (CBAM) aims to prevent EU industries from being undercut by more-polluting foreign competitors, removing the temptation for EU firms to relocate to regions with lax environmental rules.

The reforms also include plans to launch a new EU carbon market covering emissions from fuels used in cars and buildings in 2027, plus an €86.7 billion EU fund to support households affected by the costs. However, concerns have been raised that the plan will add 10 euro cents to the price of petrol and diesel, sparking fears of social unrest like the 2018 yellow vests movement in France. The reforms were adopted with a large majority, signaling broad political support in Parliament. The laws still need final approval from EU countries, who will assess them in the next few weeks. The European Commission has welcomed the vote as a crucial step for climate action and the EU’s objective of cutting emissions 55% below 1990 levels by 2030.

Source:

• EURACTIV

The G7 group of industrialised nations has pledged to end the use of fossil fuels in their energy sectors by 2035 and urged other countries to follow suit. But the group failed to agree on any new deadlines for ending the use of fossil fuels in general. Host nation Japan led opposition to the most ambitious proposals, citing concerns over energy security. The G7 ministers also called for an end to new plastic pollution by 2040, and urged global greenhouse emissions to peak by 2025. The group did not endorse Japan's strategy of burning hydrogen and ammonia alongside fossil fuels to reduce emissions, stating that some countries were exploring the potential of hydrogen fuels, which should be aligned with a 1.5C pathway. The G7 has previously said that Russia's war in Ukraine made gas investments "appropriate as a temporary response". Fatih Birol, executive director of the International Energy Agency, said the statement took account of both energy security and the need to deal with the climate crisis.

Source:

• France 24

The International Court of Justice (ICJ) will be consulted to determine what legal obligations nations have to protect climate systems and those impacted by climate change, according to a resolution passed by the United Nations General Assembly that was put forth by the island nation of Vanuatu in the South Pacific. The resolution was co-sponsored by 132 nations and was unanimously approved on Wednesday, 29th March. The UN now has the authority to ask the ICJ for guidance on whether nations are legally required to protect the present and future generations from climate change.

Additionally, it will ask the ICJ for guidance on the legal repercussions for states that, "by their acts and omissions," impair the climate to the point that it impacts others, particularly tiny island states and their inhabitants who are among the most vulnerable to the effects of climate change. According to the Associated Press, UN Secretary-General Antonio Guterres expressed his hope that when the court's ruling is released, it will inspire governments "to adopt the bolder and stronger climate action that our world so sorely needs." Vanuatu, an archipelago of over 80 islands spanning 1,300 km (807 miles) and struck by two Category 4 cyclones in the span of three days earlier this month, was in the forefront of the project.

Source:

• Al Jazeera

Watch as the Secretary-General addresses the evidence behind climate destruction based on the Intergovernmental Panel on Climate Change as well as the urgency for climate action.

• Watch and read the speech here

At the beginning of March, UN delegates reached a historic agreement on protecting marine biodiversity in international waters. The agreement benefits biodiversity and is an encouraging development as the international community scrambles to tackle the climate emergency, demonstrating the value of multilateral action under the UN. Protecting the ocean is a key element of the global response to climate change. It has long taken the brunt of the impact of human-made global heating, absorbing about one-quarter of all carbon dioxide emissions to date and 90% of the heat generated by greenhouse gas emissions trapped in the Earth’s system.

This has had a substantial influence on ocean and coastal life as well as the lives and livelihoods of coastal inhabitants. These changes include ocean warming, acidification, deoxygenation, and sea level rise. In the interim, governments have firmly entrenched ocean preservation and climate change mitigation within the UNFCCC framework. A number of new Ocean Dialogues were required during the UN Climate Change Conference COP26 in Glasgow in 2021. The UN Climate Change Secretariat released a report after the first Ocean Dialogue last year that emphasized the ocean's critical role in supporting livelihoods, biodiversity, and the climate system.

The research acknowledges that coastal residents continue to be disproportionately impacted by and in the forefront of the fight against climate change. At the same time, seas offer a great capacity to store carbon. Coastal waters are also an ideal place for renewable energy projects, as well as for the preservation and restoration of ecosystems. Governments gathered at the COP27 UN Climate Change Conference in Sharm el-Sheikh last year pledged to take further action by investigating how they might include ocean-based action into their national climate action plans and strategies under the Paris Agreement.

Source:

• United Nations Climate Change

Defra, Forest Research, Scottish Forestry, and the Welsh Government launched on Monday 20 February The Climate Change Hub, which centralizes the most recent resources, information, and guidance on climate change adaptation to support landowners, woodland managers, and forestry practitioners in addressing climate change threats. The expected rate of climate change is unprecedented, resulting in hotter summers and more frequent occurrences of extreme weather conditions like prolonged droughts and excessive rainfall. Now is the time to take action to strengthen the resiliency of forests and woodlands and safeguard the advantages they offer, such as carbon sequestration.

The Climate Change Hub, run by Forest Research, collects and disseminates the most recent knowledge and UKFS (United Kingdom Forestry Standard) recommendations on climate change adaptation to encourage forest and woodland owners and managers to endorse adaptable practices. It offers succinct details regarding the dangers associated with climate change, instructions for choosing appropriate adaptation methods, and illustrations of how other managers are putting adaptive practices into action. Although each woodland has various goals and conditions, there is no one suggested strategy for adjusting to climate change. The Climate Change Hub also offers comprehensive, step-by-step guidance through the decision-making process, as well as details on the online resources available to support risk management and species selection. This information enables managers to make well-informed decisions for their own woodlands.

Forestry Minister Trudy Harrison mentioned: “Trees and tree management are crucial parts of our plan to reach Net Zero by 2050, and resources such as the Climate Change Hub support the forest industry to make better, more informed and ultimately more sustainable decisions when it comes to tree planting and woodland management.”

Source:

• GOV UK

The World Bank's beleaguered president, David Malpass, said on, Wednesday 15 February, that he would resign by June, or about a year before his tenure ends. Mr. Malpass, who was put forth by President Donald J. Trump in 2019 for a five-year term, has been in charge of an agency that lends billions of dollars annually to underdeveloped nations dealing with health problems, starvation, warfare, and global warming. But in September of last year, he faced criticism for his personal stance on climate change. He resisted when asked if he agreed with the overwhelming body of scientific evidence that the use of fossil fuels was to blame for the increase in global temperatures. He declared, "I'm not a scientist. The discussion, which took place during a live interview at a New York Times event, started a slow-moving PR disaster for Mr. Malpass that culminated on Wednesday when he announced his intention to step down from his position by June 30. Following his resignation announcement to the bank's board of directors and senior personnel, Mr. Malpass, 66, said in a statement, "Having achieved tremendous progress, and after much thinking, I've decided to explore new challenges. Mr. Malpass responded in a text message when asked why he left so early, saying he was "extremely proud of my over four years of hard, successful work here."

Throughout his tenure, Mr. Malpass guided the bank through the world economic crisis brought on by the coronavirus outbreak and Russia's conflict in Ukraine. A fresh sense of urgency will likely be added to the significant changes that the World Bank was already undergoing as a result of Mr. Malpass' departure. Also, it will allow President Biden, who took office with a bold climate policy agenda, to appoint a leader whose term will last until 2028. The bank has been in criticism for years for failing to adequately respond to the needs of nations that have been harmed by increasingly extreme weather made worse by climate change and for using a lending model that places a large debt burden on developing countries. Many of the World Bank's main shareholders, including the United States, France, and Germany, called for change last year as calls for reform at the organization and its sibling, the International Monetary Fund, gained momentum. The possibility of reforming the two organizations became a point of emphasis for the world leaders in attendance at the United Nations climate negotiations in Egypt in November.

Sources:

• The New York Times
• Climate Home News

One of the most important issues of our time is climate change, and NATO has been actively including specialists, members of civil society, and other groups in discussions about how climate change and security are related. The NATO-Istanbul Cooperation Initiative (ICI) Regional Centre in Kuwait conducted the first-ever conversation with experts from allies and partners on new climate issues and how to address them jointly on Monday, January 30. Approximately sixty civilian and military participants from NATO, Allied countries, partner countries, as well as officials from international organizations, attended the hybrid event.

The Head of the NATO Office at the NATO-ICI Regional Centre in Kuwait, Nora-Elise Beck, emphasized in her opening remarks that "climate change is a danger multiplier that effects our security, our infrastructure, our equipment, and the environments in which our soldiers operate. NATO Allies can take advantage of occasions like this one to collaborate with others to address these concerns. Discussions centered on how NATO and its allies, particularly those to the South, might address the new climate change concerns that are arising in the Gulf region and their effects, including on water security. Participants talked on the advantages of sustainable development.

Dr. Alanoud Al Sabah, the acting director of the NATO-ICI Regional Centre, noted that "our region is seeing rising heat, dust, and floods. The immediate effects of climate change are already being felt, particularly in relation to human security but also in terms of logistics, transportation, food security, and water scarcity. In order to create a network of regional stakeholders interested in climate change and security for future collaboration, we at the NATO-ICI Regional Centre value and encourage both regional and NATO efforts to promote awareness. A partnership conference involving NATO and non-NATO nations was founded in 2004 as the Istanbul Cooperation Initiative (ICI). Currently, the Initiative is supported by Bahrain, Kuwait, Qatar, and the United Arab Emirates. NATO intends to become the leading international organization when it comes to comprehending and adjusting to the impact of climate change on security, as stated in the new Strategic Concept for NATO.

Source:

• NATO News

Governments and the international scientific community are seriously considering a UN-led strategy to combat climate change by drastically upgrading the way heat-trapping air pollutants are tracked worldwide, the World Meteorological Organization (WMO) said on 1 February. In the following five years, the WMO effort would establish a network of ground-based measuring stations that can independently confirm alarming air quality data that has been detected by satellites or aircraft.

The UN agency urged "improved (international) collaboration" and data exchange to support the 2015 Paris Agreement, which offers a roadmap for reducing carbon emissions and increasing climate resilience. "At present, there is no comprehensive, timely international exchange of surface and space-based greenhouse gas observations," the agency stated. Dr. Oksana Tarasova, a Senior Scientific Officer at WMO, said "It's not just manmade emissions (that will be monitored), but what the forests are doing, what the oceans are doing." We have no time to waste, thus we need this information to support our mitigations. Dr. Tarasova continued, "The reasons for this increase are still unknown, so one of the functions of this new proposed infrastructure would be to help fill in the gaps which we have in our knowledge regarding the observations and regarding the use of these observations." In 2022, WMO reported the largest-ever observed increase of methane. In order for the planned Global Greenhouse Gas Monitoring plan to be successful, cooperation between countries, international organizations, and the private sector will be crucial, the WMO has emphasized.

Greater coordination between surface-based, aerial, and space-based monitoring networks will be crucial. We will comprehend our changing atmosphere better with more precise and long-term data, according to the UN organization. We will be in a better position to decide and determine whether our efforts are having the desired impact. In support of the establishment of a solitary and globally coordinated atmospheric monitoring body, WMO explained that although some governments and international organizations already conduct specific atmospheric monitoring and maintain datasets, "there is no overall steering mechanism and there is undue reliance on research funding." Although nitrogen and oxygen make up the majority of the Earth's atmosphere, there are numerous other trace gases and particles that have a significant impact on life and the environment. Emissions of greenhouse gases have significantly altered the composition of the atmosphere since industrialization. In particular, WMO has frequently cautioned that rising concentrations of greenhouse gases like carbon dioxide and methane are fueling climate change and contributing to global warming. Accurate measurements of the air we breathe are crucial because these and other pollutants are also influencing the air quality for people, agriculture, and ecosystems, according to climate scientists. The UN agency stated that having accurate, trustworthy information about pollution levels and atmospheric deposition levels "also helps us to better understand their impacts on the environment, human health, biodiversity loss, ecosystems, and water quality, and to either mitigate those impacts or put protective measures in place."

Source:

• UN News

Over 150 delegates from the NATO Allies and industry attended the first Industry Symposium on Climate Change and Capabilities that NATO held on Monday, January 23, 2023. The attendees talked about how to build new military capabilities while keeping in mind NATO's goals for security and combating climate change. The use of cutting-edge and environmentally friendly technology in capability requirements, the self-sustainability of forces and infrastructure, and the creation of sustainable fuels for capabilities in the air, land, and maritime domains were some of the topics highlighted.

"The Alliance is working hard to accomplish our objectives on climate change and security," said Wendy Gilmour, Assistant Secretary General for Defence Investment. While ensuring that military capabilities are prepared for the future, we must also closely collaborate with business, both in the defense and civilian sectors, to account for the impact of the defense sector on the environment. I find it encouraging that our business partners are interested in discussing these concerns with NATO, and I look forward to our relationship growing. The threat multiplier effect of climate change on NATO operations, missions, and security is acknowledged by allies. In order to develop its Climate Change and Security Agenda, which was approved by NATO leaders in 2021, the Alliance actively engaged experts, members of civil society, and the commercial sector. This was done as part of the NATO 2030 agenda. NATO is including climate change issues into its work on capability building as part of this Agenda. The Secretary General established an annual High-Level Dialogue on Climate Change and Security at the NATO Summit in Madrid in 2022.

Source:

• NATO

Managing the massive sequence of shocks that have rocked the global economy has been a major topic of discussion at the annual World Economic Forum (WEF), which is taking place in Davos, Switzerland, this year. Chief executives and government officials from all over the world are in attendance. Nonetheless, the greatest collective action challenge of our time for leaders is to confront climate change and the demise of our ecosystems. Moreover, the possibility of a transatlantic green trade war casts a large shadow on this. The purchase of electric cars will be eligible for £300 billion in subsidies under Joe Biden's proposed plan, but only if they are mostly made in North America. Some European businesses are moving their factories to the US as a result of the Inflation Reduction Act, which also has an impact on a wide range of other manufacturing and production. Even the producers of fertilizer are scratching their heads and wondering why European authorities aren't enacting regulations along the same lines.

On 17 January, the European Union reacted to American efforts to speed up its energy transition by announcing measures to ease the way for the region's green economy. The EU also announced that it will deploy state aid and a fund to deter businesses from transferring to the US. Ursula von der Leyen, the president of the European Commission, stated at the annual gathering of the World Economic Forum (WEF) in Davos that the actions will be a part of the EU's Green Deal industrial plan to make Europe a hub for clean technology and innovation.

"To help make this happen, we will put forward a new Net-Zero Industry Act," she said. "The aim will be to focus investment on strategic projects along the entire supply chain. We will especially look at how to simplify and fast-track permitting for new clean tech production sites," she said. "To keep European industry attractive, there is a need to be competitive with the offers and incentives that are currently available outside the EU," von der Leyen added.

Sources:

• World Economic Forum
• Reuters
• BBC

According to a "evolution roadmap" seen by Reuters, the World Bank is seeking to significantly increase its lending capacity to address climate change and other global crises and will negotiate with shareholders ahead of April meetings on proposals that include a capital increase and new lending tools. The roadmap document, which was given to shareholder nations, is the first step in a negotiating process to change the mission and financial resources of the bank and move it away from the country- and project-specific lending model it has employed since its founding towards the ending of World War II. According to the document, the World Bank administration hopes to have concrete suggestions to alter the organization's goal, operational structure, and financial capacity ready for consideration by the combined World Bank and International Monetary Fund Development Committee in October.

Since developing countries have been under increasing pressure from inflation, energy and food shortages brought on by Russia's war in Ukraine, slowing growth, increasing debt loads, and growing vulnerability to climate shocks, the reform of multilateral development banks has become a hotly debated issue. The strains exposed the inadequacy of the World Bank and International Monetary Fund (IMF) systems, which were created at the aftermath of World War II with the goal of concentrating on the reconstruction of peacetime economies, to deal with the current global catastrophes.

In relation to the document, the development lender will investigate options such as a potential new capital increase, adjustments to its capital structure to enable more lending, new financing tools like guarantees for private sector loans, as well as other approaches to mobilize more private capital. The World Bank Group (WBG) has a longstanding AAA credit rating, but some non-profit organizations have urged it to be dropped in order to increase lending. According to the WBG, "Management will explore all options that increase the WBG's capacity while maintaining the AAA rating of the WBG entities."

Source:

• Reuters