About $41b in World Bank climate aid to vulnerable nations missing, claims Oxfam

Oxfam has raised alarm over the transparency of the World Bank’s climate funding, revealing that as much as $41 billion of its climate aid to vulnerable nations remains unaccounted for.

In its report published on 17 October, Oxfam disclosed that up to 40% of the funds allocated between 2017 and 2023 cannot be traced. These funds, intended to help low- and middle-income countries manage the escalating climate crisis, lack any clear record showing where the money went or how it was used, which Oxfam argues makes assessing its effectiveness "impossible."

The report criticises the World Bank's approach, which tracks climate funding at the point of project approval, rather than following up on how much is actually spent and where. According to Oxfam, this method leads to incomplete records, sparking concerns that funds may not be reaching the projects and communities most in need of climate resilience measures and clean energy investment. 

Kate Donald, head of Oxfam International’s Washington DC office, underscored the critical nature of transparency, especially as climate finance is set to be a key agenda item at the COP29 summit in Azerbaijan. “Not tracking how or where the money actually gets spent? That’s not just some bureaucratic oversight — it’s a fundamental breach of trust,” she remarked. 

With calls growing for an ambitious climate finance goal to replace the current $100 billion target, Oxfam and other advocates argue that a substantial increase to around $5 trillion annually is necessary. This would address the needs of developing nations facing climate-driven damage, enable a transition away from fossil fuels, and support climate adaptation.