Washington, D.C., USA – On April 8, 2025, the World Bank unveiled a new $1 billion emergency fund aimed at supporting countries facing severe climate-related disasters. This initiative is part of the Bank’s ongoing efforts to address the increasing impacts of climate change, particularly in vulnerable regions that have been hit by extreme weather events such as floods, droughts, and wildfires.
The announcement was made by World Bank President David Malpass during a virtual press conference, where he detailed the fund’s purpose and its potential impact. “As climate change accelerates, the need for immediate financial support for countries experiencing catastrophic weather events has never been more urgent. This fund will provide swift and flexible financing to help nations respond to these disasters and rebuild their communities,” Malpass said.
The $1 billion will be made available to countries facing natural disasters exacerbated by climate change, and it will be allocated through grants and low-interest loans. The World Bank is collaborating with local governments, international organizations, and non-governmental partners to ensure that the funds are distributed efficiently to those most in need.
Key figures in the climate and finance sectors have praised the initiative. UN Secretary-General António Guterres, who has long advocated for stronger global action on climate change, welcomed the World Bank’s response. “This is a step in the right direction. The effects of climate change are being felt more sharply every day, and the international community must continue to scale up support to the countries that need it most,” Guterres stated.
The World Bank’s decision to create the emergency fund comes in the wake of increasing reports of damage from extreme weather events. In recent years, countries across Africa, Asia, and Latin America have faced catastrophic floods, hurricanes, and droughts, which have caused widespread displacement and loss of life. As these events grow more frequent and severe, there is increasing pressure on global financial institutions to provide resources that allow for faster and more effective emergency responses.
The emergency fund is also seen as part of a broader effort to help countries transition to climate resilience. This includes investing in sustainable infrastructure, renewable energy projects, and disaster risk reduction strategies. World Bank Vice President for Sustainable Development, Dr. Catriona Purvis, emphasized the importance of long-term solutions alongside immediate disaster relief. “The emergency fund is not just about immediate recovery, but also about helping nations build back better and more resiliently in the face of future challenges,” Dr. Purvis said.
The fund is expected to play a critical role in alleviating the strain on national economies that often results from climate disasters. Many affected countries, particularly low- and middle-income nations, have limited resources to deal with the financial burden caused by such events. With this new initiative, the World Bank is demonstrating its commitment to addressing climate change and supporting vulnerable nations as they work to mitigate and adapt to its effects.
