Capitalizing on Climate

The World Bank is criticized as a major climate polluter that uses its role in climate finance to maintain developed country control over developing nations. Despite its rhetoric, the Bank continues to fund carbon-intensive projects, such as a $3.75 billion coal plant loan to South Africa, and promotes flawed carbon offsetting and forest conservation schemes. The report contrasts the World Bank's donor-controlled Climate Investment Funds (CIFs) with the more equitable, grant-based UNFCCC Adaptation Fund, calling for a transition to a Global Climate Fund accountable to the Conference of Parties.

• The World Bank continues to be a major financier of fossil fuels, reaching a record high of $4.7 billion in annual fossil fuel lending as of April 2010, primarily targeting coal in middle-income countries.
• The World Bank's $3.75 billion loan to the South African utility Eskom for the 4800 MW Medupi coal plant is cited as an example of institutional hypocrisy, as the plant will emit at least 25 million metric tons of CO2 annually.
• The World Bank's carbon offsetting mechanisms, specifically the Clean Development Mechanism (CDM), are criticized for failing to deliver actual emissions cuts and neglecting sustainable development; one analysis found only 1.6% of credits benefited sustainable development.
• The World Bank is accused of financing forest destruction in the Democratic Republic of Congo and the Amazon while simultaneously managing forest conservation programs like the Forest Carbon Partnership Facility (FCPF), which prioritizes carbon measurement for offsets over actual deforestation reduction.
• The World Bank's Climate Investment Funds (CIFs) are viewed as tools for developed countries to maintain control over climate finance, undermining UNFCCC funds and the effort to establish an equitably governed global climate fund.
• The UNFCCC's Adaptation Fund is presented as a superior model to the World Bank's approach because it allows developing countries direct access to funds and is governed by a slight majority of developing countries.

APA

Orenstein, K. (2010). Capitalizing on Climate. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/Capitalizing-on-Climate-FINAL-6-1-10.pdf

Chicago

Orenstein, Karen. Capitalizing on Climate. Friends of the Earth International, 2010. https://www.foei.org/wp-content/uploads/2020/12/Capitalizing-on-Climate-FINAL-6-1-10.pdf.

Wikipedia

{{cite report |last1=Orenstein |first1=Karen |title=Capitalizing on Climate |publisher=Friends of the Earth International |date=June 2010 |url=https://www.foei.org/wp-content/uploads/2020/12/Capitalizing-on-Climate-FINAL-6-1-10.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{orenstein2010capitalizing, author = {Orenstein, Karen}, title = {{Capitalizing on Climate}}, institution = {Friends of the Earth International}, year = {2010}, month = jun, url = {https://www.foei.org/wp-content/uploads/2020/12/Capitalizing-on-Climate-FINAL-6-1-10.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }