By Faridat Salifu
In a report released by Oxfam International, it has been revealed that the World Bank may have up to $41 billion in unaccounted climate finance, raising concerns about transparency and the effectiveness of its projects.
The audit, which reviewed the World Bank’s climate finance portfolio from 2017 to 2023, suggests that poor record-keeping has left billions of dollars untraceable, creating uncertainty over how much of this money was spent on critical climate-related initiatives in low- and middle-income countries.
According to Oxfam’s findings, deviations between planned climate finance spending and actual expenditures range between 26% and 43%. This disparity, which could amount to as much as $41 billion, has left a substantial gap in accountability.
The report highlights that it is impossible to evaluate the real-world impact of the World Bank’s climate finance projects due to the lack of accurate public records detailing where the money went or how it was used.
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Kate Donald, head of Oxfam’s Washington DC office, emphasized the significance of this issue as not just a bureaucratic failure but a breach of trust.
“The World Bank regularly boasts about its climate finance commitments, but these figures are based on planned budgets rather than actual expenditures,” Donald noted. She likened the situation to a doctor trying to assess a diet by looking at a grocery list without knowing what’s consumed.
Oxfam’s report calls for greater scrutiny and reform in how climate finance is tracked and delivered, particularly as global stakeholders prepare for the upcoming Conference of the Parties (COP).
With climate finance seen as a key mechanism to address the impacts of climate change in vulnerable nations, the lack of clear accounting is seen as a threat to progress in the fight against the climate crisis.
The report concludes with a call for increased transparency, better monitoring mechanisms, and more robust reporting practices to ensure that future climate finance is not only committed but effectively spent on the intended initiatives.
