World Bank funding for efficient and renewable energy rose 87 this year to nearly $2.7 billion, reflecting the importance of moving to a low-carbon economy, the bank's energy chief said on Thursday.

Investment in "green" energy projects is essential for poor countries hit hard by soaring oil prices, said Jamal Saghir, World Bank Director for Energy, Transport and Water.

"What's affecting the poor countries is not only the oil price increase, it's the volatility as well, which is creating vulnerability at the same time," Saghir said by telephone. "That's why you look at alternative sources of energy."

Read more about the World Bank's green energy funding here.