At its annual meeting in Washington this month, the World Bank will be demanding more money from British taxpayers, as a part of planned increase to its capital budget. The US is already highly sceptical, and we believe the UK Government should only agree if certain conditions are met.
First, we have to be sure that our money will be spent wisely.
World Bank rules which privilege renewable energy at the expense of conventional energy projects do little to help with poverty. Developing countries can only build up their industry, create jobs and improve healthcare if they have a foundation of reliable power. As Indian Railways Minister Piyush Goyal put it last year “Every country needs a baseload. I cannot tell my country. ‘guys, it’s 6pm in the evening, shut everything down because the solar has gone off.”
Second, we should insist that World Bank spending supports British trade as well as aid
Key Commonwealth partners like India, Nigeria and Bangladesh have populations in the tens of millions without access to reliable power. They are desperate to use their coal and gas resources to bring electricity to their people, and they want to do so in the cleanest possible way. Technology like high efficiency low-emissions coal plants, which British manufacturers specialise in, can help them, providing a crucial transitional bridge as we move towards a low-carbon economy. Yet under current World Bank rules it is not eligible for funding. We should insist on an end to these restrictions, helping millions access lifesaving electricity while supporting British exports.
The world’s poorest countries did not create the problem of climate change. They should not be made to pay for the mistakes of developed countries by forgoing access to the low-cost, reliable power that we used to industrialise. When the UK delegation travels to Washington this month, this is the case we need them to make.