World Bank to abandon goal to devote 45% of lending resources to climate change projects
The bank will keep tracking climate impacts and extend its action plan after 48% of 2025 financing had climate co-benefits, officials said.
- On Monday, The World Bank Group announced it will "retire" its goal to devote 45 per cent of annual lending to climate projects, while extending its Climate Change Action Plan beyond its June 30 expiration.
- The development lender faced pressure from the Trump administration to abandon climate targets adopted during the Biden administration in 2023, prompting a shift toward lending outcomes rather than input goals.
- World Bank President Ajay Banga shifted focus to "smart development," aimed at boosting job opportunities while providing climate benefits, while the lender dropped its previous 35 per cent climate lending target.
- French development minister Eleonore Caroit issued an eleventh-hour plea last week to keep targets intact, yet the United States, Russia, Kuwait, and Saudi Arabia declined to sign a letter from France and 18 other countries endorsing continued climate work.
- Management will continue tracking climate scorecard indicators on net global greenhouse gas emissions under the CCAP, and the bank plans to "explore and discuss ways to better structure our engagement on adaptation, nature and pollution.
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The World Bank's climate plan came to an end on Tuesday, June 30, 2026. This five-year programme allowed up to 48% of its funding to be allocated to climate-friendly projects. Ajay Banga, the president of the institution, had made it a priority. But the United States, the world's leading shareholder, has been very active in reshaping this plan. Finally, the World Bank announced an update of its strategy. It indefinitely extends the climate plan …
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World Bank Drops Rule That Nearly Half Its Loans Must Be Climate-Related
Under pressure from the Trump administration, the World Bank is stepping back from its commitment to fund climate-related projects in the developing world. An international organization dedicated to financing global development, the World Bank announced on June 29 that it was dropping its goal of committing 45 percent of its funding to projects intended to fight global warming. The Bank stated that it would extend its Climate Change Action Pla…
The World Bank has abandoned a target considered crucial for climate finance after intense pressure from the United States, which is the institution's largest shareholder and has dismantled decades of international cooperation in the fight against global warming. Exclusive material for subscribers. To have full access, access the link of the subject and register.
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