The World Bank on Tuesday announced that it will no longer finance upstream oil and gas projects after 2019, apart from certain gas projects in the poorest countries in exceptional circumstances.
The Bretton Wood institution made this known in the early hours of today at One Planet Summit intended to boost global shift to cleaner energy.
“As a global multilateral development institution, the World Bank Group is continuing to transform its own operations in recognition of a rapidly changing world,” the bank said in a statement.
“The World Bank Group will no longer finance upstream oil and gas, after 2019,” it added.
The prominent bank also said that the exception to this decision will be certain projects in some of the world’s poorest countries.
“In exceptional circumstances, consideration will be given to financing upstream gas in the poorest countries where there is a clear benefit in terms of energy access for the poor and the project fits within the countries’ Paris Agreement commitments.”
According to the statement, this decision will help countries meet their greenhouse gas-curbing pledges, which they had made in support of the 2015 Paris Agreement to limit global warming.
The World Bank is like a cooperative, made up of 189 member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank.
World leaders, including President Muhammadu Buhari, are attending the One Planet summit in Paris.
The summit is jointly organised by the United Nations, the World Bank Group, and the French Government in partnership with non-governmental organisations.