The World Bank, Inter-American Development Bank (IDB), and other multilateral development banks (MDBs) are being asked to commit to end investments in the internal combustion engine (ICE), or fossil fuel-dependent vehicles, by 2025. By doing so, the MDBs have the potential to create a world in which everyone regardless of their country relies on transport infrastructure that is both climate-resilient and climate-friendly.
Why should MDBs phase out support for internal combustion engines?
The World Bank, Inter-American Development (IDB), and other multilateral development banks must do more to decarbonize transportation — the fastest growing sector for CO2 emissionsShow your support
Creating a transport infrastructure that is both climate-resilient and climate-friendly.
BIC’s research has uncovered that since the 2015 Paris Climate Agreement became effective, the majority of World Bank and IDB transport projects have continued to favor fossil fuel-dependent vehicles.
Energy-driven carbon emissions attributed to transport
IFC financing that went to projects that support ICE vehicles
IDB transport project financing for ICE intensive projects
World Bank transport project financing involving ZEVs
IDB Invest transport project funding for ICE intensive projects
A continued favoring of fossil fuel-dependent vehicles.
Our research on World Bank and IDB considers all active projects that we could ascertain, based on public information, were relevant to vehicle use. All projects were proposed between January 2017 through September 2021.
BIC | Taking Action
The World Bank is aware of its role and has started to take some action with small programs dedicated to decarbonizing transport.
This includes Sum4All, the World Bank’s sustainable mobility campaign launched in 2017, which brings together public and private partners to provide the data and policy tools needed to decarbonize global transport, including the Global Roadmap of Action Toward Sustainable Mobility.
BIC | Taking Action
Of the project financing in the transport category from the public sector arm of the World Bank, 68 percent is for projects that include support for ICE vehicles and infrastructure
such as refineries and petrol stations; and only two percent of financing is for projects that support ZEVs and infrastructure, such as electric buses and charging stations.
Countries around the world are already making time-bound commitments to phase out the sale, production and use of ICE vehicles and fossil fuel infrastructure.
Read our First Report
In this report we present research findings on project financing from the World Bank Group and the IDB Group. Our research on World Bank (IBRD/ IDA) projects reviews active transport-related projects, whereas the research on the International Finance Corporation (IFC), the private sector arm of the World Bank, as well as the IDB Group considers all active projects that we could ascertain, based on public information, are relevant to vehicle use.