WHERE ARE THE WORLD BANK’S MISSING BILLIONS? OXFAM SAYS NO ONE KNOWS

There is no record of up to $41 billion given by the World Bank to vulnerable countries as part of the global battle against the climate crisis, according to a report by Oxfam, a major global charity working to tackle poverty and inequality.

The October 17 report has revealed that the Bank’s poor record-keeping has left up to 40 percent of its climate funds disbursed between 2017-2023 untraceable —funds meant to combat rising temperatures, devastating floods, and worsening droughts in low and middle-income nations.

“There is no clear public record showing where this money went or how it was used, which makes any assessment of its impacts impossible,” the report reads.

“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.”

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The core problem, according to Oxfam, lies in the World Bank’s tracking method: it records climate finance amounts when projects are initially approved rather than after they are completed.

This means there’s limited follow-up on what funds are ultimately spent, leading to incomplete and unreliable records of how the money is actually used.

Climate finance is expected to be a key focus at the upcoming COP29 in Azerbaijan, with negotiations set to finalise the New Collective Quantified Goal (NCQG) on climate finance, replacing the former $100 billion target established in 2009.

Developing countries and climate activists are already advocating for a substantial increase, arguing that at least $5 trillion annually is necessary to address the impacts of climate crisis in vulnerable regions, support a transition away from fossil fuels, and cover loss and damage for communities facing irreversible climate impacts.

Emerging markets and developing countries (excluding China) will need nearly $2.4 trillion each year by 2030 to achieve climate goals, according to the UN.

Yet, the lack of traceable spending on climate finance raises unsettling questions about whether existing resources are making any meaningful impact where they’re most needed, according to the Oxfam report.

“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,” says Kate Donald, Head of Oxfam International’s Washington DC Office.

“The Bank needs to act like our future depends on tackling the climate crisis, because it does.”