As part of a major energy strategy, the World Bank is planning to cut funding for fossil fuel plants and focus on renewables.
The World Bank is planning to cut funding for fossil fuel plants and emphasise the benefits of renewables as part of a major energy strategy. The news suggest a major shift in the bank’s approach to green investment, and comes just days after the organisation said it would lift its 18-month moratorium on palm oil investments only if stringent environmental and social conditions are met.
The World Bank has been criticised by green campaigners for seemingly favouring fossil fuel projects over low-carbon alternatives, but a draft of the energy strategy says that grants and loans to middle-income countries for coal-fired power stations will now come to an end.
Meanwhile, poor countries will be able to access funds for fossil fuel projects only if they can prove that the new plants are necessary and there are no practical renewable energy alternatives.