08 October 2008 – Funding from the World Bank funding for efficient and renewable energy rose 87% to US$2.7 billion, the bank confirmed last week.
Jamal Saghir, World Bank director for energy, transport and water told reporters that investment in ‘green’ energy projects was essential for poor countries.
"What’s affecting the poor countries is not only the oil price increase, it’s the volatility as well, which is creating vulnerability at the same time," he continued. "That’s why you look at alternative sources of energy."
Funding for the 2008 financial year was nearly double that of 2007, which in itself showed an increase of some 67% on 2006 funding.
Rising fuel costs has made alternative energies more attractive to the developing world and the World Bank has committed to the following for the next fiscal year:
- US$1.1 billion for energy efficiency;
- US$476 million for new renewable energy projects (wind, solar, biomass, geothermal and hydropower projects with a capacity of up to 10 MW);
- US$1 billion for hydropower projects of more than 10 MW.