The World Bank Group is considered important in dealing with problems like climate change, pandemics, famine, and refugees, but it has its critics. In December 2018, the World Bank announced it would make about USD200bn available to fund action on climate change from 2021-25, helping countries, especially in the world’s poorest countries, adapt to the effects of warming and reduce greenhouse gas emissions. The money will support the generation, integration and enabling infrastructure for 36 gigawatts of renewable energy and support 1.5 million gigawatts per hour equivalent of energy savings through efficiency improvement, helping 100 cities achieve low-carbon and resilient urban planning and transit-oriented development.
At the beginning of January 2019, Jim Yong Kim caused a shock when he announced his decision to quit as head of the World Bank three years early. This was reported as a ‘personal decision’ and sent shockwaves through the finance industry and the international aid community. He will leave by 1 February.
Kim has defected to start work at Global Infrastructure Partners, which focuses on investing in renewable power generation assets in developing countries. His new post highlights the growing influence of fund managers that specialise in green energy.
In Kim’s letter to staff, there is a veiled criticism of the organisation when he wrote that the opportunity to join the private sector was unexpected, but one that he says will enable him “to make the largest impact on major global issues like climate change and the infrastructure deficit in emerging markets.”
Investment funds that focus exclusively on renewable energy infrastructure reached an all-time high of USD42.3bn of capital in 2018, more than double the amount that was accumulated in 2017. The US green power market forecast that levels of private investment in the sector and related grid modernisation could possibly reach USD1tn by 2030, with the European market expected to draw in a similar amount of capital.
Solar power has been a huge success story in the UK, with one million homes and 1,000 schools taking some responsibility clean energy and climate action. June 2018 in the UK was one of the sunniest months on record and many of the 840,000-plus homes in the UK with solar panels...