The Big Shift Global campaign, comprising 50 organizations from diverse regions including the Global South and North, urges the Multilateral Development Banks (MDBs), particularly the World Bank under the leadership of President Ajay Banga, to take decisive action during the Spring Meetings. The focus is on redirecting financial resources away from fossil fuel initiatives and toward renewable energy projects.

During the December Climate talks, international consensus was reached on the imperative to phase out fossil fuels. In January, President Biden of the United States suspended approvals for both pending and future liquefied natural gas (LNG) export applications.

However, the World Bank lags, persisting in promoting outdated and environmentally hazardous fossil fuel endeavors. Despite President Banga’s rhetoric on poverty alleviation and fostering shared prosperity within a sustainable ecosystem, the institution continues to advocate for gas as a transitional energy source, thereby risking its reputation.

Recent estimates indicate ongoing investment by the World Bank in fossil fuels. Between 2020 and 2022, an average of $1.2 billion annually was allocated to such projects, with approximately two-thirds directed towards gas initiatives.

The World Bank and IMF Spring Meetings are scheduled from Friday, April 17th to Sunday, April 19th, accompanied by ancillary events spanning April 15th to 20th. These gatherings convene central bankers, finance and development ministers, parliamentarians, representatives from the private sector, civil society, and academics to deliberate on global economic prospects, poverty eradication, economic development, and aid effectiveness.

According to Mark Moreno Pascual, Global Advocacy Lead at Recourse, the prevailing “bigger and better” bank paradigm, centered on prioritizing the private sector, is misguided and perilous. He contends that this approach not only jeopardizes both people and the planet but also constitutes a morally bankrupt strategy for Multilateral Development Banks (MDBs).

Pascual emphasizes that a “bigger bank” should not solely focus on augmenting private sector contributions but rather on facilitating increased grant-based financing for debt-distressed nations. Similarly, a “better bank” should prioritize safeguarding community rights and welfare throughout the energy transition, rather than merely enhancing operational efficiency.

Local communities, particularly vulnerable groups such as women, indigenous populations, and marginalized communities, disproportionately bear the adverse impacts of fossil fuel infrastructure on their livelihoods and surroundings, as well as the repercussions of escalating global temperatures.

Dean Bhekumuzi Bhebhe, Campaigner for Don’t Gas Africa, underscores the pivotal moment at which the African continent finds itself, presenting two contrasting developmental trajectories. One path involves the perpetuation of a fossil-fueled development trajectory supported by public finance, influenced by extractive industries and historical colonial powers, which have historically exploited the continent without fostering sustainable development.

Alternatively, there exists an opportunity for a forward-looking trajectory that prioritizes a fossil fuel finance exclusion policy, enabling Africa to bypass reliance on fossil fuels and instead foster a robust economy grounded in energy sovereignty, universal energy access, and the nurturing of burgeoning industries alongside environmental preservation through the support of Multilateral Development Banks (MDBs).

The Big Shift Global campaign asserts that the 2024 Spring Meetings must mark a decisive moment for Multilateral Development Banks, particularly the World Bank, to cease the utilization of public funds for fossil fuel initiatives.

Sophie Richmond, Global Lead at the Big Shift Campaign, underscores the significance of the upcoming Spring Meetings, especially considering the milestone of the Bretton Woods Institutions turning 80 this year. At this juncture, she contends, the Multilateral Development Banks (MDBs) like the World Bank cannot afford to perpetuate outdated practices detrimental to both people and the planet.

Gas, Richmond emphasizes, does not represent the future or a solution to energy access challenges, nor are gas investments in alignment with the Paris Agreement objectives. She calls upon the Bank to definitively shift its financial allocations away from fossil fuels and towards sustainable, renewable energy sources, thereby demonstrating a genuine commitment to the goals of the Paris Agreement and the phase-out of fossil fuels.