WASHINGTON, 15 October 2025 -Spain is contributing €19.5 million to the World Bank's Livable Planet Fund (LPF) as part of a new package of support announced today for sustainable development and debt relief. The funding, which reinforces Spain´s leadership in addressing global challenges, will help scale up cross-border projects in energy, water, and nature protection.
The package also includes an accelerated 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. The MDRI cancels the debt that qualifying countries owe to international financial institutions like the World Bank. The key purpose of this debt cancellation is to free up financial resources in those countries. Instead of using their limited funds to service old debts, they can redirect that money towards essential domestic priorities.
"Spain is stepping up its multilateral engagement to tackle global challenges," said 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 decarbonization-and reaffirms our commitment to a sustainable and inclusive future."
Spain has led innovative solutions to ease the debt burden of vulnerable economies and enhance their access to financing, including as part of its contribution to the Sevilla Platform for Action. These initiatives 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.
In addition to the LPF and MDRI support, Spain will provide:
€20 million to the Spanish Fund for Latin America and the Caribbean (SFLAC)
€5 million to the Global Fund for Decarbonizing Transport (GFDT)
"With this new support, Spain is boosting efforts to create jobs, build more resilient economies, and free up resources where they are most needed," said 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, housed at the World Bank Group, supports transformational investments that deliver both national development and global benefits. In its first round, the LPF allocated $76 million to projects worldwide.
The LPF is part of the World Bank's new Framework for Financial Incentives (FFI), which rewards countries for expanding national projects to deliver global benefits. The FFI was launched this year by the World Bank in response to mounting calls for multilateral development banks to address global challenges.
