According to a new report by the international aid organization Oxfam, at least $24 billion allocated for climate initiatives has not reached the World Bank’s accounts. Institutions that have consistently blamed cryptocurrencies, implying they are the worst thing in the world, now do not know where this money is. If this cash had been transferred in cryptocurrency, the transparency of blockchain would have allowed everyone to track where the money went and how it was spent.
Uncertainty Surrounding Fund Locations
Oxfam reported that the World Bank has been auditing its climate finance portfolio from 2017 to 2023, and there is no clear public record of where these funds have gone or how they have been used. This situation renders the evaluation of spending efficiency impossible.
Criticism and Missing Records
Oxfam also indicated that it is unclear whether the funds exported for climate-related initiatives, clean energy investments, and protection against climate change impacts in low and middle-income countries have been appropriately utilized.
An anonymous source at the bank suggested that the amount of missing funds reported by Oxfam could actually be ten times higher than stated, asserting, “All figures are routinely fabricated… Nobody knows who is spending what.”
Kate Donald, head of Oxfam International’s Washington D.C. Office, stated, “While the bank boasts about billions for climate finance, these figures are based on planned spending. They do not reflect what is actually spent once projects begin. It’s like asking a doctor to assess your diet based solely on your grocery list without checking what’s actually in your fridge.”
In response to the report, a World Bank spokesperson noted, “We are discussing these findings, but our ongoing interactions with Oxfam and other civil society groups are valuable for becoming more transparent in our climate work.”
According to Oxfam’s report, the World Bank accounts for 52% of total climate finance among all multilateral development banks. Without transparency in the records of missing funds, evaluating the effectiveness of steps taken to combat climate change will not be possible.
