Goa Collaborated with World Bank for Blended Finance Facility

The Government of Goa announced that it will set up a blended finance facility in collaboration with the World Bank. 

• This will be the first of its kind, climate-focused, multi-regional facility at the subnational level. This will help Goa to access and mobilize concessional finance to implement low-carbon and climate-resilient investments.
• Blended finance – encompassing public, private, international and domestic climate finance – has the potential to help Goa and other coastal states in India build greater resilience to rapidly increasing climate impacts.

About Blended Finance Facility

• At the 2024 edition of the World Bank's India Climate and Development Partners Meeting the blended finance facility was announced. 
• This facility will support projects with existing funding and provide financing to projects/sectors without existing funding.
• It will serve as an important bridge between the green financing mechanism and domestic capital markets, attracting private capital investment for climate action. 
• By integrating carbon markets and using green credits, the programme will ensure its sustainable operation and continuous recapitalization.
• The conference is being held in Panaji from 19 to 21 February and is jointly hosted by the Government of Goa and the World Bank.

World Bank

• The World Bank is the largest multilateral development bank. It was established in July 1944 following the successful conclusion of the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference, which was held in Bretton Woods, United States in 1944. 
• The World Bank, initially known as the International Bank for Reconstruction and Development (IBRD), was created to provide loans for economic development to member countries.
• Over time, new institutions were established by the World Bank to meet the emerging needs of its member countries.

Currently, the World Bank Group consists of five institutions:

1. International Bank for Reconstruction and Development (IBRD),
2. International Financial Corporation (IFC),
3. International Development Association (IDA),
4. Multilateral Investment Guarantee Agency (MIGA), and
5. International Center for Settlement of International Disputes (ICSID).

• The IBRD is the main body of the World Bank, which provides loans to member countries for development purposes, while the IFC invests in private sector companies in member countries. 
• IDA provides loans at concessional rates to least developed member countries, and MIGA guarantees investments against non-commercial risks. ICSID is responsible for settling investment disputes.
• Currently the World Bank has 189 member countries, which are shareholders and owners of the Bank. The United States is the largest shareholder with a 17.25% stake, while India is the 7th largest shareholder with a 2.91% stake.
• The World Bank Group is headquartered in Washington D.C., United States and its current President is Ajay Banga, an American citizen.