Mapping the World Bank Group Risk Mitigation Instruments for Climate Change

This fact sheet by the Climate Policy Initiative (CPI) analyzes the use of risk mitigation instruments by the World Bank Group (WBG) for climate-related projects. It concludes that while the WBG is a major provider of risk mitigation, these instruments have not been used at a significant scale for climate change, suggesting a need for a formal mandate to increase availability and the use of specific tools like guarantees and index-based instruments.

• The World Bank Group (WBG) has increased its annual commitments to risk mitigation from an average of 2 USD billion since 1990 to 4 USD billion in the last three years. The portion of these flows dedicated to climate change was 10% overall, rising to 14% between 2010 and 2012.
• The WBG's risk mitigation instruments primarily target political and counterparty/credit risks, with other risks generally covered via partial credit guarantees. Most climate-related commitments have targeted established technologies, primarily in East Asia & Pacific, Latin America, and Sub-Saharan Africa.
• Different WBG institutions have varying roles in climate risk mitigation: MIGA is the largest volume provider overall but has low climate sector involvement; IBRD offers the widest variety of instruments but is shifting toward public sector contingent financing; and IFC is the only institution with products specifically for climate change, though only one such product has reached significant scale.
• To improve the support for green investment, the CPI suggests a WBG mandate to increase the availability of risk mitigation instruments, a more frequent use of guarantees, and the exploration of index-based instruments for sectors beyond disaster risk mitigation.

APA

Climate Policy Initiative (n.d.). Mapping the World Bank Group Risk Mitigation Instruments for Climate Change. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/09/World-Bank-Group-Risk-Mitigation-Instruments-for-Climate-Change-Fact-Sheet1.pdf

Chicago

Climate Policy Initiative. Mapping the World Bank Group Risk Mitigation Instruments for Climate Change. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2013/09/World-Bank-Group-Risk-Mitigation-Instruments-for-Climate-Change-Fact-Sheet1.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Mapping the World Bank Group Risk Mitigation Instruments for Climate Change |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2013/09/World-Bank-Group-Risk-Mitigation-Instruments-for-Climate-Change-Fact-Sheet1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendmapping, author = {{Climate Policy Initiative}}, title = {{Mapping the World Bank Group Risk Mitigation Instruments for Climate Change}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2013/09/World-Bank-Group-Risk-Mitigation-Instruments-for-Climate-Change-Fact-Sheet1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }