THE Philippine Movement for Climate Justice (PMCJ) has condemned the World Bank for what it calls “hypocritical” financing practices, following the approval of an $800 million loan to support the Philippines’ clean energy transition.
Recently, the World Bank green-lit the First Energy Transition and Climate Resilience Development Policy Loan (FETCR DPL), aimed at bolstering reforms for renewable energy technologies, electricity market competition, and water resource management. But critics say the move contradicts the bank’s continued support for fossil fuel projects.
A 2022 Big Shift Global report revealed the World Bank has funneled $14.8 billion into fossil fuel-related projects since the 2015 Paris Agreement — despite its public commitments to climate action.
“The World Bank cannot claim to champion renewable energy while quietly bankrolling the very industries driving the climate crisis,” said Sheila Abarra, senior media and communications officer of PMCJ.
The group pointed to previous loans, such as the $750 million First Sustainable Recovery DPL approved in 2023, which removed foreign ownership caps on natural resource sectors and amended laws to allow full foreign control of public services.
PMCJ argues that these reforms prioritized market interests over national sovereignty and people’s needs, while failing to yield tangible climate resilience or renewable energy gains.
Additionally, the implementation reports for the First SR DPL have yet to be released, even as a Second SR DPL was approved in June 2024. This lack of transparency, PMCJ claimed, reflects a pattern of pushing policies without public consultation or accountability.
Critics also say development policy loans (DPLs), which are disbursed as non-earmarked funds, mirror the World Bank’s controversial structural adjustment programs of the past — pressuring borrowing nations into reforms that benefit private sector investors and fossil fuel developers.
One example cited is the promotion of public-private partnerships (PPPs) in the downstream natural gas sector, which PMCJ claims undermines the transition to clean energy.
The group also claims that reforms under these loans have allowed big energy players to gain control of electric cooperatives, raising concerns about energy affordability and security.
“These loan agreements are being signed without involving the people who will bear the burden of repayment,” Abarra said adding: “This is inherently unjust.”
PMCJ is calling on the World Bank to fully divest from fossil fuels and commit to a just energy transition grounded in transparency, accountability, and climate justice.
“There is no saving the planet without phasing out dirty energy,” the group said.
