Marc Ó Cathasaigh (Waterford, Green Party)
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51. To ask the Minister for Finance the level of oversight held by his Department of the climate and development funds managed by the World Bank to which Ireland is a donor; the way in which the funding is being used; the frequency and depth of reports provided to his Department in relation to the projects and programmes supported by those funds; and if he will make a statement on the matter. [6213/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I would like to thank the Deputy for his question and the opportunity it affords me to outline the World Bank’s mission and Ireland’s contribution in shaping, influencing and supporting this important work.  

At the outset, I think it may be useful for me to provide clarification in respect of the Deputy’s reference to climate and development funds managed by the World Bank. While the Institution applies a climate lens to all of its policies and operations, its primary goals are to end extreme poverty and promote shared prosperity. It recognises the link between poverty/prosperity and climate and the potential for climate change to push much more of the world's population into poverty by 2030. The World Bank has therefore enjoined the fight against climate change and its Climate Change Action Plan 2021-2025 seeks to mobilise $200 billion in support of developing countries to take climate action during the course of its lifetime. A summary of this plan’s ambition, is available at . The Bank also uses the true cost of carbon in all its projects. Therefore, while the funds the World Bank manages are not dedicated ‘climate’ funds, as I will outline below, climate considerations significantly influence how the Bank targets it’s resources. 

As the Deputy will be aware, the World Bank consists of five separate entities.  The International Bank for Reconstruction and Development (IBRD) provides loans, credit, and grants to low to middle income countries while the International Development Association (IDA) provides low or no-interest loans and grants to low-income countries. The other parts of the World Bank include: (i) the International Finance Corporation (IFC) which provides investment, advice, and asset management to companies and governments; (ii) the Multilateral Investment Guarantee Agency (MIGA) which insures lenders and investors against political risk such as war; and (iii) the International Centre for the Settlement of Investment Disputes (ICSID) which settles investment disputes between investors and countries. 

Ireland is a donor to IDA, the largest sources of assistance for the world’s 74 poorest countries (39 of which are in Africa). Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing zero to low-interest loans and grants for programmes that boost economic growth, reduce inequalities, and improve people’s living conditions. Since its establishment in 1960, IDA has provided $422 billion for investments in 114 countries. IDA is a multi-issue institution, supporting a range of development activities (including climate change) that pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA-financed operations address primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms. The World Bank Group publishes details of all projects and operations, including associated documentation, on their website -  . 

IDA’s policy framework is reviewed by its members every three years during the course of the “replenishment process” when donor members pledge financial support to the institution. Officials from my Department represent Ireland at these meetings in order to articulate Ireland’s development priorities and ensure that they are reflected in IDA’s policy commitments. For the most recent replenishment, IDA19, members agreed on five special themes for IDA19: climate change; fragility, conflict and violence; gender; governance and institutions; and jobs and economic transformation. IDA19 also incorporates four cross-cutting issues: debt, disability, human capital, and technology. In 2019, Ireland pledged approx. €102m to this replenishment (IDA19), an increase on the €90m commitment to the previous replenishment (IDA18) in 2016.

Aside from IDA progress updates furnished during the course of the formal plenary Spring and Annual Meetings, Mid-Term Review (MTR) meetings are held as part of the formal replenishment process. During the MTR, members review progress on policy commitments and identify any mid-course corrections or adjustments required. My Officials represent me at this event and, in collaboration with other Donor Governor Representatives, rigorously monitor and scrutinise progress against stated objectives across all policy and governance areas. These discussions, which are held over a number of days, provide further opportunity for IDA Donors to engage with Senior Management on the Bank’s performance and on programme delivery.  

To support these discussions, a report on the implementation of the replenishment is provided in advance of the meetings, identifying emerging challenges and lessons learned. Much of this reporting is informed by IDA’s Results Measurement System (IDA RMS). Introduced in 2002, the IDA RMS is a key reporting and accountability tool for tracking progress and reporting results achieved by IDA during each replenishment cycle. The IDA RMS provides a snapshot of country-level, long-term development outcomes; development results in countries supported by IDA operations across different sectors; and IDA’s organisational and operational effectiveness. Annual reports on the IDA RMS are published on the IDA website - https://ida.worldbank.org/results/rms. 

The IDA RMS is supplemented by other tools to provide a more comprehensive picture of IDA’s activities and impact, including the work conducted by the World Bank’s Independent Evaluation Group (IEG). The IEG Annual Report on the Results and Performance of the World Bank Group provides analysis of how the different institutions deliver on key goals and more detailed evidence on the performance of country programmes and projects. The Annual Report is available on the World Bank IEG website - . To assist external oversight, the IEG also produces ‘Implementation Status and Results Reports’ which provide regularly updated information on progress directly from individual projects under implementation and ‘Implementation Completion and Results Reports’ which record achievements against a project’s development objectives.

These toolsets and platforms provide important information on the value and efficacy of Ireland’s contribution to the World Bank. These insights not only inform Ireland’s ongoing engagement with the Bank but influence and guide analysis and decisions regarding further investment.

Finally, I would like to make the Deputy aware that Ireland also provides funding to a number of separate World Bank Trust Funds including:

- Least Developed Countries Fund (LDCF)

- Blue Economy in the Caribbean

- International Finance Corporation (IFC) Facility for Investment Climate Advisory Services (FIAS

- Adaptation Fund (AF)

- Global Environment Facility (GEF)

However as these are variously administered by the Department of Foreign Affairs and the Department of Environment, Climate and Communications as opposed to my Department, I do not propose to comment on Ireland’s oversight of these funds.