By Obiabin Onukwugha
As global leaders gear up for the Conference of Parties (COP29) between November 11 to 22, at Azerbaijan, Oxfam International, a non-profit organisation, has revealed that up to $41bn in World Bank climate finance are unaccounted for.
The revelation was made in a report published on Oxfam website on 17th October, ahead of the World Bank and IMF Annual Meetings in Washington, D.C. It stated that nearly 40% of all climate funds disbursed by the Bank over the past seven years is unaccounted for due to poor record-keeping practices.
Accordong to the report, an Oxfam audit of the World Bank’s 2017-2023 climate finance portfolio found that between $24 billion and $41 billion in climate finance went unaccounted for between the time projects were approved and when they closed.
It said there is no clear public record showing where this money went or how it was used, which makes any assessment of its impacts impossible. It also remains unclear whether these funds were even spent on climate-related initiatives intended to help low and middle-income countries protect people from the impacts of the climate crisis and invest in clean energy.
“The Bank is quick to brag about its climate finance billions —but these numbers are based on what it plans to spend, not on what it actually spends once a project gets rolling,” said Kate Donald, Head of Oxfam International’s Washington D.C. Office. “This is like asking your doctor to assess your diet only by looking at your grocery list, without ever checking what actually ends up in your fridge.”
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The Bank is the largest multilateral provider of climate finance, accounting for 52% of the total flow from all multilateral development banks combined.
The issue of climate finance will take center stage at this year’s COP in Azerbaijan, where countries are set to negotiate a new global climate finance goal, the New Collective Quantified Goal (NCQG).
Climate activists are demanding the Global North provide at least $5 trillion a year in public finance to the Global South “as a down payment towards their climate debt” to the countries, people and communities of the Global South who are the least responsible for climate breakdown but are the most affected.
Oxfam warned that the lack of traceable spending could undermine trust in global climate finance efforts at this critical juncture.
“Climate finance is scarce, and yes, we know it’s hard to deliver. But not tracking how or where the money actually gets spent? That’s not just some bureaucratic oversight —it’s a fundamental breach of trust that risks derailing the progress we need to make at COP this year. The Bank needs to act like our future depends on tackling the climate crisis, because it does,” said Donald.
Oxfam’s investigation revealed that obtaining even basic information on how the World Bank is using climate finance was painstaking and difficult.
“We had to sift through layers of complex and incomplete reports, and even then, the data was full of gaps and inconsistencies. The fact that this information is so hard to access and understand is alarming —it shouldn’t take a team of professional researchers to figure out how billions of dollars meant for climate action are being spent. This should be transparent and accessible to everyone, most importantly communities who are meant to benefit from climate finance,” the report added.
