Spain has become the latest country to contribute to the World Bank’s Livable Planet Fund (LPF), as part of a new package of support for sustainable development and debt relief.
Spain is contributing €19.5 million to the LPF, with the country “stepping up its multilateral engagement to tackle global challenges,” commented Carlos Cuerpo, Spain’s minister of economy, trade and business.
“Spain remains committed to bolder financing for development, as enshrined in the Sevilla Commitment. Our partnership with the World Bank ensures we can deliver concrete results – from debt relief to decarbonisation – and reaffirms our commitment to a sustainable and inclusive future.”
Multilateral Debt Relief Initiative
The package also includes a commitment of €66.67 million to the World Bank Group’s Multilateral Debt Relief Initiative (MDRI), with an ‘immediate payment’ of €40.52 million to help poor countries free up resources for health, education, and jobs.
This initiative cancels the debt that qualifying nations owe to international financial institutions such as the World Bank, in turn freeing up financial resources in these countries, and enabling them to focus on domestic priorities.
Initiatives by Spain to ease the debt burden of vulnerable economies include the launch of the Alliance for Debt Pause Clauses, the promotion of Debt-for-Sustainable-Development swaps, and the establishment of the Sevilla Forum to advance best practices in borrowing and debt management.
As well as the LPF and MDRI support, Spain has also pledged €20 million to the Spanish Fund for Latin America and the Caribbean (SFLAC) and €5 million to the Global Fund for Decarbonizing Transport (GFDT).
‘True partnership’
“With this new support, Spain is boosting efforts to create jobs, build more resilient economies, and free up resources where they are most needed,” added Ajay Banga, World Bank Group president. “This is more than just funding; it’s a true partnership. By combining Spain’s leadership with the World Bank’s global reach, we can scale up projects that benefit the entire international community.”
The Livable Planet Fund, launched under the World Bank’s Framework for Financial Incentives (FFI), channels investment into projects that align national priorities with global sustainability outcomes. In its first round, the fund allocated $76 million to projects worldwide. Read more here.
