The World Bank has announced that it will cease financial support for oil and gas extraction in response to the increasing threat of climate change. The Bank announced that it will “no longer finance upstream oil and gas” after 2019, although it will consider lending for projects in the poorest countries with the guarantee that the poor will benefit from the project, have access to energy, and the project does not conflict with commitments made in the 2015 Paris climate change accord.
As one of the world’s leading financial institutions, the World Bank is setting the pace for other institutions, countries, and investors to consider their own divestment from the fossil fuel industry. Although the Bank has promised to limit funding fossil fuel projects in poor countries unless it benefits the poor in that country, perhaps it would be better to announce funding for more sustainable forms of energy and production in these countries.
This signal was spotted by Kartik Krishnamoorthy:
Keith Wood | Stone | Getty Images The World Bank Group will cease to finance upstream oil and gas after 2019, it was announced Tuesday. The global financial institution said at the One Planet Summit in Paris that its decision would "align its support to countries to meet their Paris goals."
And Carol Brighton:
EnergyProgress /FossilDivestment #SignalofChange: @WorldBank announces it won't back oil and gas projects after 2019 at #OnePlanetSummit https://t.co/0rZihYA7gU via @NatObserver