Air Quality: The World Bank unveils a $1 billion guarantee to support clean air projects worldwide

In a major step toward tackling air pollution, the World Bank has announced a monumental $1 billion commitment to support clean air projects worldwide.

This commitment aims to reduce the risks of investing in air quality initiatives and encourage further investments in sustainable solutions.

The Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank, announced the substantial financial guarantee during the recent spring meetings. This pledge underlines a growing recognition of the urgent need to combat air pollution and its harmful effects on health and the environment.

Juergen Voegele, Vice President for Sustainable Development at the World Bank, emphasized the importance of such initiatives. He stressed the need to redirect financial resources to clean air projects, especially given the significant economic toll of air pollution.

“Don’t believe it if someone tells you there is no money for air quality. The same countries that say they have no money are pouring huge amounts of money into fossil fuel subsidies.”

Air pollution is the fifth largest contributor to global health risks, yet this critical global health and environmental issue often receives insufficient attention from development financers, including governments, multilateral development banks and bilateral development agencies.

In 2019 alone, more than a million lives were lost in Africa due to polluted air. Furthermore, toxic emissions from the combustion of coal, oil and gas led to the premature deaths of more than 9 million people worldwide in 2018.

The $1 billion guarantee is poised to play a critical role in catalyzing investments in air quality improvement projects. With this financial support, the World Bank aims to mitigate the risks associated with such efforts and facilitate the mobilization of additional funds from various stakeholders.

This new commitment is in line with the international community’s broader efforts to comprehensively tackle air pollution. As countries strive for cleaner air and a healthier environment, initiatives like the World Bank guarantee offer hope for tangible progress in the fight against air pollution.

Jane Burston, CEO of an environmental organization, emphasized the importance of partnerships and collective action in tackling air pollution. She stated: “To tackle air pollution we need a new vision of partnerships that acts in the interests of all. We must recognize that we have a collective responsibility to provide affordable, sustainable solutions around the world.”

Between 2015 and 2020, international development funders channeled a whopping $14.6 billion into projects that expand fossil fuel use, dwarfing the commitment to tackling air quality, which amounted to just $403.6 million, a discrepancy of 36 times. Despite the severity of the problem, these funders spent just $11 billion on air pollution reduction efforts between 2015 and 2021, for an average of $1.5 billion per year. Shockingly, this only makes up 0.5% of their total liabilities. For every $1,000 spent, a measly $5 was allocated to the fight against air pollution, which poses the fifth largest health risk worldwide. In Africa, where 26% of global deaths from air pollution occur outdoors, international development funders allocated a disproportionately low amount of US$403.6 million between 2015 and 2021, representing just 3.7% of total air quality funding .

The World Bank’s announcement comes amid increasing global awareness of the devastating effects of air pollution on human health and the environment. By investing substantial financial resources into clean air projects, the institution demonstrates its commitment to promoting a sustainable and healthy future for all.

This story was a collaboration with New Narratives. Funding was provided by the Clean Air Fund. The financier had no control over the content of the story

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