The World Bank has announced it will increase the amount of funding for climate projects to $29 billion (£18.9bn) a year.
Currently 21% of the Bank’s funding – or $10.3 billion (£6.7bn) a year – is climate-related but that could rise to 28% by 2020 “in response to client demand”.
The investment will boost support for energy efficiency and renewable energy, climate-smart transport solutions, resilient cities and enhanced water security.
The announcement was made during the Annual Meetings of the World Bank group and International Monetary Fund (IMF) in Lima in a private meeting of ministers who gathered to talk about climate financing ahead of the COP21 event in Paris this year.
World Bank President Jim Yong Kim said: “We are committed to scaling up our support for developing countries to battle climate change. As we move closer to Paris, countries have identified trillions of dollars of climate-related needs. The Bank, with the support of our members, will respond ambitiously to this great challenge.”