Amid the second year anniversary of Paris Agreement, the World Bank has announced that it will discontinue its support in fossil fuel projects in 2019.
The announcement was came out during the celebration at the One Planet summit and on the two-year anniversary of the Paris Climate Agreement.
The bank, which provides loans to developing countries to foster economic growth, announced on December 12 that it will no longer offer financial support for oil and gas exploration after 2019.
During the One Planet summit, the bank released a statement saying it “will no longer finance upstream oil and gas,” citing a need to change in a “rapidly changing world.”
In 2015, the bank previously vowed to have 28% of its portfolio dedicated to climate action by 2020. The bank’s latest statement on fossil fuel financing suggests that it is on course to achieve that goal.
The announcement will truly shocks the fossil fuel energy industry, and a seemingly significant win for environmental advocates.
As of the moment, the economics surrounding the energy sector are increasingly making it more attractive for entities to switch to renewable energy.
Across the world, it has become cheaper to build new renewable energy installations than to operate and maintain existing coal power plants.
Also, the bank said in their statement that it will lay out “exceptional circumstances,” saying that they will consider “…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.”