\nAt a meeting discussing the World Bank\u2019s stronger focus on climate, Russia has also urged the lender to extend its support for gas projects. <\/p>\n
Saudi Arabia and Russia have called on the World Bank to ramp up its financial support for carbon capture and storage.<\/strong><\/p>\n Speaking at a meeting of the World Bank\u2019s steering committee, Saudi Finance Minister Mohammed Al-Jadaan urged the World Bank to \u201ctake on a prominent role in promoting CCUS [carbon capture utilisation and storage]\u201d.<\/p>\n At the same meeting in Washington DC, Russia\u2019s deputy prime minister Alexey Overchuk said CCUS was \u201cof utmost importance to the green agenda\u201d.<\/p>\n The technology is meant to suck carbon out of the atmosphere, usually from a particularly polluting source like a fossil fuel power station\u2019s smokestack, and either use it or put it back in the ground. But it remains very expensive and largely unproven<\/a> at scale.<\/p>\n Brownen Tucker from the campaigning group Oil Change International said more World Bank support for carbon capture and storage would be \u201cbeyond ridiculous\u201d.<\/p>\n \u201cThe World Bank prioritising carbon capture and storage would just be a way to greenwash its long-time role as a piggy bank for the fossil fuel industry,\u201d she told Climate Home.<\/p>\n At this week\u2019s spring meeting of the World Bank, Al-Jadaan said the bank\u2019s support for CCUS has been \u201cinsignificant\u201d so far.<\/p>\n He added that the technology has \u201cgreat potential to serve the climate mitigation agenda while contributing to affordable universal energy access\u201d.<\/p>\n At the World Bank Group Development Committee meeting in Washington DC, I stressed the importance of continuing the Group\u2019s commitment to ending extreme poverty and boosting shared prosperity and the Sustainable Development Goals of the United Nations.#WorldBank<\/a> #SpringMeetings<\/a><\/p>\n \u2014 \u0645\u062d\u0645\u062f \u0639\u0628\u062f\u0627\u0644\u0644\u0647 \u0639\u0628\u062f\u0627\u0644\u0639\u0632\u064a\u0632 \u0627\u0644\u062c\u062f\u0639\u0627\u0646 | Mohammed Aljadaan (@MAAljadaan) April 12, 2023<\/a><\/p>\n<\/blockquote>\n Saudi Arabia is a major proponent of CCUS and has a history of promoting<\/a> it in international summits, including talks over the IPCC scientific reports and UN climate talks.<\/p>\n Carbon capture and storage remains expensive and unproven at large scale.<\/p>\n According to the IPCC\u2019s scientists<\/a>, stopping a tonne of carbon dioxide with CCUS costs between $50 and $200. Replacing fossil fuels with renewables usually saves money.<\/p>\n There are currently only 35 commercial facilities applying CCUS with a total annual capture capacity of 45\u202fMt\u202fCO2, according<\/a> to the International Energy Agency (IEA). Most are in North America and in the gas processing industry.<\/p>\n Many climate campaigners have called<\/a> it a \u201cdistraction\u201d that gives fossil fuel companies a licence to keep extracting more climate-harming coal, oil and gas.<\/p>\n But the IEA\u2019s head Fatih Birol disagrees, calling it<\/a> \u201ccritical for ensuring our transitions to clean energy are secure and sustainable\u201d.<\/p>\n In its current climate change action plan<\/a>, the World Bank says CCUS\u00a0\u201cmay be an important lever for decarbonization\u201d.<\/p>\n In 2009 the World Bank set up a dedicated trust fund looking to support developing countries exploring CCUS potential.<\/p>\n Supported by the UK and Norwegian governments, the fund has provided grants worth a few million dollars.<\/p>\n It has supported technical assistance for the development of technology in Mexico<\/a>, South Africa, Botswana<\/a>, and, most recently, Nigeria<\/a>.<\/p>\n Developing countries<\/strong> call for new government funds for World Bank<\/a><\/p>\n<\/blockquote>\n Speaking at a seminar last year, World Bank specialist Natalia Kulichenko said<\/a> the trust fund would be closed in December 2023.<\/p>\n But she added the support was \u201cabsolutely essential to continue\u201d in other forms, as the World Bank had been receiving more interest on CCUS from developing countries.<\/p>\n Kulichenko talked about the possibility of providing loans to governments and guarantees to the private sector as part of existing programs.<\/p>\n Alongside CCUS, Russia\u2019s Overchuk listed gas, nuclear energy and measures to reduce the burning of gas as a by-product of pumping it up, known as flaring, as important green projects.<\/p>\n Russia is the second world\u2019s largest gas producer, accounting<\/a> for 18% of the world\u2019s gas output in 2021.<\/p>\n Following Russia\u2019s invasion of Ukraine, countries, especially in the European Union, have dramatically cut imports of Russian gas.<\/p>\n Russia is also the eighth biggest<\/a> shareholder of the World Bank, where voting rights are linked to financial contributions.<\/p>\n The World Bank has provided over $1.5 billion in support for gas projects since 2020, according to an analysis<\/a> from the campaigning group Oil Change International.<\/p>\n In 2017, the bank said<\/a> it would end its financial support for oil and gas extraction within the following two years.<\/p>\n But at Cop26 in Glasgow, it did not join five fellow development banks and 20 countries in signing up<\/a> to a commitment to halt any new financing for oil and gas projects internationally by the end of 2022.<\/p>\n Green hydrogen<\/strong> rush risks energy \u2018cannibalisation\u2019 in Africa, analysts say<\/a><\/p>\n<\/blockquote>\n Russian Deputy prime minister Overchuk also urged the international community, including the World Bank, to find a common solution to ensure energy access and tackle poverty in Africa.<\/p>\n \u201cDeveloping natural gas projects in African countries, abundant with natural gas, is a part of this solution,\u201d he said. Several African leaders have said<\/a> the same, criticising the West for stopping gas finance.<\/p>\n Overchuk opposed \u201cadditional reiteration and redistribution of resources\u201d towards tackling climate change. Those efforts, he believes, are already well funded by the World Bank.<\/p>\n World Bank\u2019s<\/strong> private sector arm to stop supporting new coal<\/a><\/p>\n<\/blockquote>\n The World Bank has committed to aligning all its operations with the Paris Agreement by July 2023.<\/p>\n However, the draft methodology to be used for this process indicates that some support for Paris-unaligned oil and gas projects will continue, according<\/a> to the National Resources Defence Council.<\/p>\n The lender claims to be the world\u2019s largest provider of climate finance to developing countries. It says<\/a> in 2022 it delivered $31.7 billion for climate-related investments, taking up 36% of its overall lending.<\/p>\n<\/div>\nSaudi\u2019s CCUS pitch<\/h3>\n
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\u2018Costly distraction\u2019<\/h3>\n
\u2018Absolutely essential\u2019<\/h3>\n
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Russian backing<\/h3>\n
Gas commitments<\/h3>\n
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