Finance ministers meeting in Washington this week for the World Bank’s spring meeting approved one reform and drew battle lines on other changes. A change in the bank’s equity-to-lending ratio from 20 to 19 per cent may not sound like much, but it will free up $4 billion a year for investment, about a third of which should go to climate projects. But such changes will not solve the climate crisis, and reformers want more. Some want the ratio to be reduced further, although it will require reining in the powerful ratings agencies. And developing countries want to go beyond accounting adjustments. They have called on governments to give the bank more money. But rich countries are not keen. Switzerland’s foreign minister this week blamed „a lack of public resources,“ while the US and others fear that China will increase its voting power at the bank by giving it the most money.

Joe Lo