As the world's second largest shareholder, Britain contributes more than £2bn a year - or nearly one-third of its total UK aid budget - to the bank, but according to the House of Commons environmental audit committee, the US-based institution heavily funds fossil fuel power projects which undermine global and local attempts to reduce carbon emissions and poverty.
The MPs said that Britain abstained last year from a vote to provide South Africa with $3.75bn (£2.33bn) for a massive coal-burning project but that it should be prepared to vote down such projects in future.
"The bank is not the most appropriate channel for future UK climate finance. It undermines our low-carbon objectives," said the report. "[Britain] should be prepared to vote against any new World Bank lending for coal powered stations. The Department for International Development (DfID) should monitor the World Bank's progress in controlling carbon emissions and report the results," the MPs said.
The MPs also questioned DfID's funding of other multilateral agencies. "The multilateral aid review, [published in March] classed five organisations as being weak on climate change and the environment." The MPs point that though that UK funding to one of them - Unicef - will almost double, and funding to another - the African Development Fund - will increase by one-third.
"Dfid must ensure that the multilateral agencies it funds manage their environmental impact effectively," the report said. Read the full report here.
Source: John Vidal, Environment Editor, guardian.co.uk.
