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12/14/2017

Important Statements from World Bank at Climate Summit

World Bank announces that it will stop funding oil and natural gas projects by 2019

World Bank announces that it will stop funding oil and natural gas projects by 2019. 

According to the British newspaper Telegraph, the World Bank Group that includes three organizations in addition to World Bank made this statement at the Climate Summit in Paris. World Bank Group President Jim Yong Kim: "Climate change is turning into a more urgent economic, social and existential threat for the world."

Taken to help the parties of Paris Agreement fulfill their commitments, the decision reportedly points to a significant change in the policies of the World Bank Group which promotes exploration of energy sources in developing countries. However, there are worries that this decision may cause problems with management of oil and natural gas explorations in developing countries.

Projects intended for the poorer segments of the society will be funded

The private sector funding provided by the World Bank has reached $ 961 million. 2 percent of the $ 280 billion fund held by the World Bank Group is reserved to oil and natural gas exploration. The countries funded by the World Bank Group for oil and natural gas exploration in 2016 include Kenya and Argentina. The organization provided $ 50 million for oil explorations conducted by African Petroleum Company in Kenya, and $ 120 million for oil explorations conducted by Pan American energy company in Argentina.

Despite the fact that the decision has the potential to negatively affect the energy requirement policies of developing countries, World Bank pointed out that funding may continue for projects that are in compliance with the terms of the Paris Agreement and intended for the poorer segments of the society.

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