The World Bank Group is Australia's largest multilateral partner and is the world's largest development organisation. The World Bank Group consists of five:

• the International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income and most vulnerable countries
• the International Development Association (IDA) provides interest-free loans – called credits – and grants to governments of the world's poorest countries
• the International Finance Corporation (IFC) provides loans, equity and advisory services to stimulate private sector investment in developing countries
• the Multilateral Investment Guarantee Agency (MIGA) offers political risk insurance (guarantees) to investors and lenders
• the International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes.

The World Bank Group is able to leverage significant financial resources and expertise for sustainable development and poverty reduction. The World Bank Group is an unparalleled source of development analysis and specialist program implementation, and a leading forum for global development policy.

Australia's membership of, and financial contributions to, the World Bank Group provide Australia with the opportunity to influence policies and priorities. An ongoing objective of our relationship is to ensure that the activities of the World Bank Group recognise and actively target key development priorities in the Indo–Pacific region.

The Australian Government supports economic development in the Indo-Pacific region through contributions to the World Bank's International Development Association (IDA). The IDA fund is the largest pool of concessional finance in the world, providing grants and highly concessional loans to 75 low-income countries, including 21 in Indo-Pacific. It is closely aligned with Australia's aid program priorities: promoting private sector development; boosting women's economic empowerment; effective governance; supporting fragile states; and tackling climate change.

Maximising collective impact with the World Bank

Australia works together with the World Bank to increase our development impact in the Indo-Pacific region and promote good governance and standards.

The Bank has over 105 active projects with a net commitment of $USD2.8 4 billion in the Pacific.

IDA funding to the Pacific has significantly increased in the last decade, supporting the most vulnerable in our region. Australia's advocacy has been central to achieving and maintaining these IDA gains.

Australia will work with our Pacific family and the World Bank to help address the climate challenge

The World Bank Group has an important global role in coordinating and mobilising finance to address climate change. The World Bank is the world's largest provider of climate finance – in 2023 fiscal year providing USD 38.6 billion – more than a third of the Paris Agreement target.

The Bank has committed to deploying 35 per cent of its finance for climate mitigation and adaptation from 2021-2025, with at least half of that for adaptation.

Australia will continue to champion the voices of the Pacific and the needs of our Indo-Pacific region, through our engagement with the World Bank.